The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-25
Liberal Viewpoint
DREsIDENT RoosEvELTs ringing MESA
BY DR.. HARRY ELMER BARNES

DRESIDENT ROOSEVELT'S ringing message
tax reform will hearten many who have
believed him falterng in loyalty to the New
Deal 1t seems pretty generally agreed, even
among the friends of the New Deal, that the
weakest link in the Roosevelt program to date
has been its taxation policy. Here, there has
been only a very slight modification indeed of
the indefensible policies of Coolidge, Harding
Mellon, Hoover and Mills.
The Roosevelt Administration has been bold
and adventurous enough in it's proposals to
spend money. even though there may be some
criticism of its distribution OF funds Sooner or
later, the fiddler will have to be paid. There are
a number of ways in which it be done.
The government can today print between
twelve and fifteen billion dollars of paper money
and still preserve the legal backing in gold. This
would pay the bill for the first few years of the
New Deal but it would allow those who have
scooped up most of our national income to
escape without making their just contribution
to the financing of our efforts to avert economic
collapse.
Government bonds could be sold to the tune
of many billions of dollars. But this procedure
would only postpone the evil day of settlement
1t would add to the already top-heavy debt
structure of the country which many competent
economists believe is already so great as to
make impossible any successful rehabilitation of
the capitaliStic system.
THERE is only one sensible way in which to
l. meet the majority of the burdens imposed
by the financing of recovery. This is taxation
literally on the basis of capacity to pay.
The very wealthy did not divide up fairly
from 1921 to 1929. BY thus reducing purchasing
power they brought about the collapse of our
business order in 1925. Today restoration OIL
prosperity, if possible at all, can only be
achieved by taking this unfairly appropriated
money away from its holders and devoting it to
the national veal
In short rational taxation scheme would
not only be a fiscal expedient. 1t would also be
an instrument for achieving social justice. 1t
would serve the cause of equity 1t would end
the insane and disastrous struggle for fabulous
individual riches 1t would lead to more SEN
sible and effective distribution of purchasing
power thus increasing the market effectiveness
of American consumers and stimulating a
revival of capitalistic business endeavor.
The President seems to grasp this truth
when he wrote in his taxation message to
Congress:
our revenue laws have operated in many
ways to the unfair advantage of the few, and
they have done little to prevent an unjust con-
centration of wealth and economic power.
The movement toward progressive taxation
of wealth and of income has accompanied the
growing Investigation and interrelation OF effort
which marks our industrial society.
"VXTEALTH in the modern world does not
w come merely from individual effort; it
results from a combination of individual effort
and of the manifold uses to which the COM
munity puts that effort
The individual does not create the product
of his industry with his own hands; he utilities
the many processes and forces of mass produc-
ton to meet the demands of a national and
international market.
Whether it be wealth achieved through the
cooperation Of the entire community or riches
gained by speculation-in either case the owner
ship of such wealth or riches represents great
public interest and a great ability TO pay
Dr. Henry r. Mussey once wrote in the New
York Nation that:
What we need now is to apply to the taxa
ton of wealth something of that same daring
and imagination that the President has dis
plaved in other fields Taxation can be made
an enormously powerful machine to help effect
the profound economic changes on which we are
clearly embarked. and which We must all hope
to attain peacefully.
We may hope that his tax message is the
Presidents answer to this challenge. 1t may be
such. if he pushes it vigorously in the face OF
the opposition which may be expected from the
.,,-+oc~ate ftere irh Oth rartieS