The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-30
TUESDAY. JULY 80. 1895.
on JUNKING THE TAX BILL

IT having already been demonstrated that the
tax schedules proposed by the House Ways
and Means Committee will not raise enough
money to make dent in the national debt, let
Us now look at some Of the political aspects Of
the situation. We see in them dangers which,
we believe, more than amply support our con-
tention that this measure, originally conceived
in politics and still dominated by politics.
Should be junked, forthwith
The schedules are directed at the higher
brackets. That is all right. That is according
to the principle of ability to pay and of tax
visibility But taxation against the high brack-
cts alone VIII not do the job. That is shown by
the total figure brought forth, a sum that
would not run our government 20 days
In order that enough be raised to meet our
fiscal problem, middle and lower brackets must
be taxed. They should be taxed visibly, by the
income method. They should not be taxed in
visibly BY the viciously unfair sales or currency
initiation method Taxation against the middle
and lower brackets should follow the principle
of ability to pay. The taxes should be graded
downward as incomes grade downward. But
they should cover that great bulk of taxable
wealth which must be tapped if this govern
ment is to become once again self-supporting
Now here is where politics comes in. Next
year is a presidential campaign year In such
year politicians shy at touching tax legislation
at all. 1t is looked upon as political dynamite.
So one of two things is certain to happen, we
believe, if the inadequate ways and means bill
is passed now in its present form:
Either there will be no tax legislation at all
in 1886 with our debt continuing to mount and
our budgetary condition becoming more and
more hazardous, or
If tax legislation is attempted at all it will
take the form not of visible, ability to-pay in
come tax but instead the invisible wickedly
unjust sales tax or that still more noxious and
invisible tax which obliterates the savings of
nations, printing press initiation.
Why, you may ask, would this shift in taxa
ton form occur? Because congressman, like
other people. yield under pressure to the law
- of self-preservation. And why would self
preservation call for adopting a hidden form,
for putting lead in the congressional boxing
gloves? For the simple reason that with the
tax-the-rich bill having already been passed
the year before, any further income tax pro-
gram in 1886 would necessarily have to confine
itself to taxing the nniddes and the lowers.
That Just couldn't be in politics.
The proper tax measure required to meet
the financial needs should be such tax as al
ready has been proposed by the Ways and
Means Committee. But with the middle and
lower brackets added, and with the job dore
all at once, such measure would retain the
visibility. 1t would be fair. 1t would raise
revenue which the ways and means bill alone
does not do But we repeat, the whole job
should be done at once. If the rich are iso-
lated in one bill, the middleS and lowers will
never be isolated in another. But, believe US,
they will be made to pay, and to pay much
more heavily. by the kind of political-born
program that will come forth as a substitute
1t having become obvious that such a bill as
We have described is not forthcoming at this
session, it is better to discard the whole at
tempt and to wait until such time Con-
gress IS willing to face the task of bringing
forth bill that will not only tax the rich, but
will retain the principle of visibility and abil-
ity-to-pay in raising the money that is neces-
sary to make this country solvent.