Evening star., 1935-10-01

adoption OF poncleS tnat Will uih-
terially reduce Government expenses
and lay the foundation for annual re-
duction of the public debt. Every ef-
fort should be made to balance the
budget, and by that mean that Gov
ernment income should be large
enough not only to meet current
expenses, but to materially reduce
outstanding Indebtedness. A sound
fiscal policy must be adopted and such
a policy must provide adequate leve-
nues to meet all appropriations and, as
stated, to materially reduce bonded
indebtedness.
The only hope for balanced bud
get lies in business recovery, and any
tax system or Government policy that
delays or prevents business recovery
will add to the dangers OF the Situ-
alton; and increased deficits. If long
continued, will lead to the impair
ment of the credit not only of the Gov
ernment, but indirectly, if not direcly,
of States and individuals. and finally
to imitation and bankruptcy.
States Make Demands.
The cost of the Federal Government
to the people, great as it is. is not
the only tax burden which they are
called upon to meet. The States and
their political subdivisions make heavy
demands upon the people. 1t is esti-
mated that the taxes imposed by the
Federal Government and the States
and their political subdivisions will
amount to between $4,000, ,000.0 900 and
SlS,O 100000 for the next fiscal
year. That means that from 25 to
80 per cent of the entire income of the
American people is demanded to meet
national, State and local tax require
ments.
I submit that the tax burdens i'm
posed upon the American people are
too great. Before the war 1t was
estimated that the entire cost Of the
State and local governments
was less than per cent of the ma
tional income, but, as stated, the exac-
tions now are between Is and 80 per
cent of the entire income. There are
more than 1872 tax units in the United
States, and vast armies of officials-
Federal State and local-penetrate
every nook and corner OF the land
for the purpose of finding sources Of
taxation. I am advised that there
are now more than 100000 persons
on the Federal pay roll, whose COM
pensation approximates $1,000, 100000
annually. Only few years ago the
entire expenses of the Federal Gov
ernment were but 10000, 900. It
now requires nearly double that
amount to meet the annual salaries
of Federal employees.
There are too many tax units, too
many bureaus, agencies, departments
and tax-eating organizations. There
should be within the States q con-
solidation of taxing units, including
counties and school districts and the
various political and quasi-political
subdivisions. One of the imperative
reforms in our Federal and State gov
ernmental systems is the reduction Of
the cost of government.
Uncertainty Freezes Business.
With increases in expenditures and
taxes, business men are filled with
uncertainty. They cannot plan with
reference to their business activi-
ties, and this results In diminished
production and decreased employ
ment When I speak Of business
men, I include in that term en-
ployes as well as employers, as
employees also must know what their
tax burdens, whether direct or indi-
rect, will be. in order to shape their
course Profits must be realized In
order to expand business and furnish
face of constantly mounting costs Of
government and increases In gov.
ernmental activities, bureaus, organic
atoms and agencies, with the conse-
quent demand for a larger personnel,
it Is manifest that larger revenues
will be required. thus creating a con-
dition disturbing to business and in.
furious to the public as whole Ex-
cessive taxes, while they seriously af-
feet corporations and business, also
affect stockholders and bondholders.
Potential taxation seriously affects
budget making, and in this situation
business will doubt whether 1t can
carry on while the mills continually
grind out grists Of innovations and
additional taxes
It is known that If the Government
is prodigal and wasteful the conduct
Of State and local governments is In
fluenced. Undoubtedly, there is psy-
Geological effect following enormous
and wasteful appropriations by the
Federal Government. States and mu-
and, for that matter in
are Influenced by grandiose
schemes and large appropriations on
the part of the Federal Government
Today there are thousands Of experts
and so-called economists who are try.
ing to devise new schemes of taxation
New sources of revenue must be found,
and the doctrinaires and pseudo ex-
pertS urge measures conflScatory and
oppressive. We are familiar with the
tax measures in France in the days of
the Bourbon Kings, as well as in other
countries Of that period. under which
everything under the sun was taxed,
and, indeed, the sunlight itself did not
escape.
mentioned the numerous tax levy
ing. tax gathering and tax spending
bodies. The Federal Government, 4s
States, 3,o62 counties, 1879 town
ships, 1879 cities, villages and
boroughs, and 128,54s school dis
tricts, and more than 14,500 other
civil divisions and tax-collecting
agencies. There are Implications and
overlapping Of tax agencies, the re-
suit of which is that some products
and transactions are taxed seven or
eight times. Many of these forms of
taxation, however, are narcotic in
character, and the people slumber
while their property is being taken
from them and their pockets are being
picked
Perhaps the people are to blame for
the mounting costs of government
and the staggering deficits which are
created. Certainly the demands upon