The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-04-25

;posal is attempting to reach thai
income without actually violating
the contract which the issuing gov.
eminent made with the buyers OF
those securities.
How 1t Would Work
The effort to tax income from,
these. securities has been worked
out in fashion that is better IL
Illustrated than defined. Assume that
a corporation had invested large
portion of its surplus or reserves In
tax-exepmt bonds. The bill pro-
poses first to limit the amount Of
income which that corporation may
receive and to tax half of the re-
mainder. The result is that income
from tax exempt securities would be
mingled with other forms Of in
come and the government woulo
dip its hand into the total and take
whatever amount the law pre-
Scribed.
Another provision of the bill
would result in government confis-
cation in wartime of every dollar OF
income that any official of any cor
poration, company or partnership
received in excess of $4,000 per
year. It is to be remembered here
that the above mentioned $4,000
would not be tax-exempted. Those
drawing such salaries still would
have to pay the government $4,000
in taxes on the $4,000 income. In
other words, since nearly everyone
receiving salaries of this size serves
in an official capacity with some
commercial unit, the tax provision
actually reaches nearly all of the
individual income tax payers.
Certainly, the drastic rates af-
feet all persons receiving any in
come of consequence because there
is a sharp reduction in the person
al exemption prescribed and the tax
rates themselves are boosted high
er than a kite. For instance, a mar
ried man with an income of SO 900
a year would have to pay a mini
mum of $500 to the government inn
mediately war was declared.
Criticize Leaders Is
The lethargy that continues
among national Republican leaders
is beginning to grow irksome upon
minor wheelhorSeS and individual
of lesser consequence in
national affairs. Word is coming
through to Washington from vari-.
GUS sections of the country indicat-
ing considerable dissatisfaction with.
the management of Republican par
ty affairs by the present regime,
headed by Henry p. Fletcher, ma
tional chairman. There is likewise
a growing volume of criticism of
the work of Senator Hastings of
Delaware, and Representative Boil
ton of Ohio, joint chairmen of the
Republi torial- congreSsiona
committee.
don't believe anybody can fore
cast at this time what the result is
going to be. It should be said in
favor of Mr.. Fletcher and Coz Chair
men Hastings and Bolton, that they
are in a tough spot. They are criti-
cized if they do and criticized If
they don't. Yet the fact remains
and think it is recognized every
where that none of these three has
taken positive position nor has he
initiated any constructive effort in
behalf Of his party'S political future.
From among Republicans who yet
remain in congress, I have picked
up much private discussion indicat-
ing fear on their part that the Re-
publican party management is fac
ed with an upheaval equivalent to
the Roosevelt New Deal among the
Democrats unless the party leaders
awaken from their unperturbed
sleep. The point made most fire.
quently Is that President Roosevelt
actually has inaugurated his cam
paign for reelection, and the Re-
publicanS are doing absolutely moth
Ing about 1t. It Is well to recall that
Postmaster General Farley Is plan
ming to re-just when nobody
knows-to devote his attention to
his other job, which Is chairman of
the Democratic National commit
tee. This information can be con-
strued in only one way now that
Mr.. Fletcher is getting ready to take
his seat again at the helm Of the
campaign machine. Some of the
smarter Republicans insist that this
should be notice to the guiding
lights of their own party to begin
construction Of political trenches.
Something may come of the Re-
publican sectional meetings now be-
ing planned. It is just possible that
out of these group discussions may