The Ely miner., 1935-07-04
1l!!'jio2!9lSj 9@lS5jjq2a(k
National Topics Interpreted "a GE114A1NGR
by William Bruckart THHiII1[&
ress ding A<nx1T3MH


suddenly dispatched
RAN 20 message to con-
Soak the Rich gress asking for
new tax law that
would have the same effect, although
In limited scope, of the "share-the-
wealth" program advanced by Senator
Huey Long and Father Coughlin, the
radio priest. 1t may be said that the
President not only surprised but
stunned congress by the proposal 1t
was move concerning which there
has been no forecast and it has taken
some research to show how it links
with other New Deal reform plans.
But link does exist. OF that there
can be no doubt
Succinctly, Mr.. Roosevelt has de-
manded that congress enact a tax law
that will yield, according to estimate,
something like $1000,000,000 annually.
1t is designed to place the heaviest
drain on the rich, whether they be rich
corporations or rich individuals In
terms, the President observed that it
was a program to tax "static wealth"
and increase purchasing power of those
not blessed with this worlds goods.
The key to the program is the tax
on inheritances and gifts. These two
taxes must operate jointly if they are
to succeed at all. If an individual
Of wealth wants to avoid already heavy
inheritance taxes, he has only to give
away his property before his death. In
the new Roosevelt proposal, those who
receive these gifts would have to pay
tax upon them as they would on any
other income. There is question as
to its constitutionality but many able
lawyers believe the gift tax will be
sustained by the Supreme court.
The second phase Of the new tax
bill boosts rates of taxes on incomes.
At present, the individual with an in
come of S1,000,OO0 is taxed at exactly
the same rate as the individual having
an income of S5,OO0OO0. OF course
the $5,0O0,000 income pays more total
tax but the point is the rate is the
same as on the smaller income. Mr..
Roosevelt proposes that the rate should
be gradually increased above S1,OOO,OOO
just as it is graduated from the lowest
income taxpayer to those receiving
81 100000 annually. There seems to be
little opposition to this particular item
in the bill although 1t is natural to
expect that attempts will be made
to alter that suggestion since there
is a school of economic thought which
insists that tax rates can be high
enough to discourage investments
bringing a return to the individual of a
size large enough for the government
to take the bulk of that income.
The third major item in the Presi-
dents program provides for a gradu-
ated tax on incomes of corporations.
Corporations now are taxed at the
rate of 13k per cent of their net in
come whatever it may be. Mr.. Roose-
He proposes to have smaller corpora
tions pay only 10A per cent and that,
as the capital of the corporations in
crease, they be subjected to gradual
ly higher rate until top of 16A Is
applied on the incomes of the largest
corporations. Certain notifications or
classifcations were offered In this
connection so that some types of cor
porations may not be compelled to pay
the maximum rate.
The Presidents program for new taxes
was received without particular en-
thusiasm in con-
More Grodns gress except for a
Than Applause loud "Amen" by
Senator Long. In
right down Senator Longs alley. The
Louisiana senator has made hundreds
of speeches advocating some parts OF
the proposal now offered by the CHEZ
Executive
Congressional reaction to the Presi-
dents message included more groans
than applause. A political campaign
is due next year. Democratic leaders
in many instances face reelection. l.
does not require the services Of a
soothsayer to tell you that new taxes
are hard for a political candidate to
defend.
Specifically, therefore, 1t would
seem that Mr.. Roosevelt was playing
bad politics when he proposed a tax
bill at this time. Such is not the case.
Editorial conclusions by dozens Of
newspapers which understand the po-
litical situation in this country at this
time are unanimous in terming it a
political maneuver. Their conclusions
are based on the fact that a candidate
seeking political office can go out and
say to people of small incomes: Look
what we are doing to the rich" Thus
1t is made to appear that new wave
of soak-the-rich propaganda is about
to engulf US.
Business interests naturally are
alarmed over the prospects. Thou
sands of corporations have barely
been able to make ends meet in these
depression years. Now that there is
a prospect for some additional business
and meager profits, they are confronted
with a Washington program of taxa
ton designed to go beyond the present
tax burden.
1t is trle that some of them will
be benefited by lower rates but many
economists are of the opinion that
these corporations receiving the benefit
of lower rates actually are in the best
financial condition of any in the coun-
try. Contrary to the argument often
heard, the truth seems to be that the
smaller business entities have come
through the depression much better
than those units with great investments
and great capital funds. The answer
lies in the fact that in the case of the
smaller corporations, the stock usually
ia CLOSELY held and they are units for