The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-09-03
Liberal Viewpoint
BY DIR. HARRY ELMER BARNES

IN the midst OF tWaddle and propaganda on
l. taxation it is a great relief to come upon
something lucid, realistic and we'll informed as
the address recently delivered by DR.. Charles
Austin Beard at the fifth annual Economic Con-
ference for Engineers. Perhaps the most dis
tinguiShed American historian now living, Prof.
Beard brings the light of history to bear upon
the present much-diScuSSed question of legiti-
mate aims and goals of taxation. He shows that
the fathers recognized the relationship between
government and the distribution of wealth and
recognized that democracy could only endure i'll
connection with a wide distribution of wealth:
The founders of the American republic,
men such as Madison, John Adams, Gouverneur
Morris and Jefferson, believed that all govern
mentS in all times bear a close relation to the
forms and distribution of wealth. Their papers
and speeches TEEN with the idea.
Daniel Webster once declared fatty that a
democratic form of government could only en-
dure as long as property was widely distributed.
It is highly concentrated, he said, if those who
own it must rule by the sword; otherwise the
many will break in upon the rights of the few
under a system Of universal suffrage"
DR BEARD makes it crystal clear that both
IL the Constitution and the taxation policy
passed during our national history have been
based quite as much upon the desire to bring
about definite social results as to produce rev.
enue. He further shows that the Supreme
Court has frequently puts its o. k. upon this use
of the taxing power:
IF we look closely at the history of Federal
taxation in the United States, We can not escape
the conclusion that from the beginning Federal
taxes have been laid for economic or social ends
other than more revenue. Indeed, the ConSti-
tuition expressly declares that Congress shall
have the power to lay and collect taxes. duties,
impoSts and excise to pay the debts and provide
for the common defense and the general well
fare What is the general welfare? Is that not
an economic or social end?'
From the very first days that Congress began
TO assume the power Of passing tax laws, it has
used this authority for other purposes than rails
ing revenue. Indeed, the import duties which it
has imposed in connection with tariff laws have
often been designed to exclude certain goods
and thereby to destroy revenue. 1t las very
frequently levied and collected taxes in order to
dispense money for %bountieS, subsidies. bonuses,
and the like. 1t has imposed taxes to construct
highways in the various states and to grant
Faids to education.
CONGRESS has also taxed such industries as
~ that of making matches in order to
put out of business what was deemed to be a
poisonous industry. In this and in scores of
other instances the taxing power has thus been
used by Congress for a century and a half to
promote social and economic programs quite
distinct from any revenue-raising aim. And
these taxes have very frequently had a direct
bearing upon the distribution OF wealth in this
country. Moreover there are numerous cases in
which the Supreme Court of the United States
has upheld the complete conStitutionalitv of
such tax legislation.
Plutocratic opponents of the Roosevelt tax
policy attack with special bitterness the proposal
to level off great inequalities of wealth through
taxation. But this is nothing new. Such a use
OF the taxing power has had distinguished spon-
sorS in the past. Those who supported the
famous income tax law of 1894 clearly and
avowedly had this in mind. A similar program
was warmly recommended by Theodore Roose-
welt in a strong message to Congress back in 1907,
and when the income tax amendment was add
ed to the Constitution back in 1913 its sponsors
were motivated in large part by this very desire
to wipe out indefensible inequalities of wealth.
Instead of complaining to the police about
the neighboring nudists, that New Jersey
farmer might have got them to help him shock
his grain.
Now that it appears Uncle Sam may cease
recognizing them, maybe the Russians were a
bit hasty with their recent anti-beard cam