Milford chronicle., 1935-07-26
SNARE THE WEALTH
BY DeImer HubbeIl

by OelmeF duDDell
Economic problems customarill
suffer from humbug and distortion
when presented to the people by pol
iticians, but probably in no case Il
there so much of both humbug AND
distortion as when the general sub
ject of taxation is discussed.
The current rage for sharing-the-
wealth may well be based on sound
social and economic grounds, but
they are not the ones emphasized,
The public is being told that such
super-taxation will add materially
to the well being and opportunities
Of the poor and materially reduce
their burden.
Let US suppose that MT. A dies
today, leaving 100000 shares of
General Motors stock, worth rough
ly $6O,OOO,OOO, of which the share
the-wealth advocates would like to
take Gt least three-fourths, or $45,-
100000. To pay this tax. 100000
shares of the 100000 would have to
be sold.
The wealth which is presumed
to be shared consists of the proper
ty and productive power of General
Motors, and specifically that part of
it represented by this block of stock.
The opportunity, the economic
value, the wages, the prOgts-the
wealth resides solely in the physical
plant of the company and its abil-
ity to produce cars for the people
to use.
By selling 100000 shares of Cen
eral Motors stock to other investors
this wealth is not distributed to the
people who are now being made to |
believe they will receive it. It is be- !
ing distributed to people who al
ready have the liquid capital with |
which to invest in American enter
prise.
This change in ownership-for
that is all it is-does not affect the
of General Motors, it's
value, it's earnings and its
ilvidends or its wage payments5
ience it does not add to the oppor-
unities which the people already
,njoy as a result of General Motors
What happens when the tax is
laid? Stock is taken from the heirs
# Mr.. A. This stock passes to sew
raj hundred or several thousand in
estOrs. Those investors pay for the
took with liquid capital, which
oes to the government. Once re-
eiyed by the government it is used.
That is, it goes back into circula- !
ion and returns to the economic
eservoir exactly as it left, liquid
apital. :
By the receipt Of this money the
government is presumed to need
hat much less revenue from ordi-
ary taxation and hence it is pre-
umed that its general taxes may be
educed for one year by that amount. !
But who are the people now pay
ng the taxes which may thus be re-
uced ever so slightly? Are they the =.
'eople who are being told that a
campaign will ma Z
arially benefit them and add to their u
pportunities in life? They are not
The soak-the-rich policy of taxa $
on accomplishes two things. II
auses the wealthy to pay their :
hare of the burden and prevents
le accumulation of great fortunes
Y successive generations-some- X
hing that rarely happens anyway. !.
ut it does not share wealth, and q
1es add opportunity only to those 0
no have capital to invest by offer s.
g them property at prices made "
and artifically low by .,
e pressure of liquidation from u
rye estates.
It is the feeling of thoughtful peo-
e everywhere that the time has Il
me for the Republican Party to al
arify its attitude toward the eco
mic organization of this country, el