The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-27
SATURDAY. JULY II. 1885.
A FROTHY TAX BILL

1--WE weeks ago the Democrats OF the House
Ways and Means Committee told Presi-
dent Roosevelt that they did not feel like
writing tax bill at the fag end of the
Congress session. The President told them
to go ahead anyway.
The bill which these committee Democrats
have thrown together is mute testimony that
their hearts have not been in their work. BY
no stretch of the imagination can it be called a
tax bill which meets the nations fiscal re-
alities
AT the outside it would produce no more
than S25OOO0OOO in new revenue-not enough
to pay the governments bills for two weeks,
not enough to take one-sixteenth slice out
q the current years deficit, not enough to pay
one-thrd Of the annual interest on the ma
tional debt
The corporation excess profits tax, We be-
leve. is more reasonable and seasoned than the
graduated corporation income tax originally
sponsored It is more securely anchored in
the ability-to-pay principle so far as the
individual stockholders are concerned, and
would exact a proportional tribute from
corporations that benefit from recovery The
face-saFing 1 per cent spread on corporate
size still advocated, is open to challenge.
The schedule of tax increases on personal
incomes while an improvement over the orig
inal idea to raise rates only on the estimated
as incomes that exceed million dollars year.
still is little more than punitive expedition
against the filthy rich 1t would boost the tax
only on incomes in excess of $15O,OOO year
thereby touching about $50 persons. And they
could escape the sting by converting more of
their investments into tax-exempt securities
ONLY political cowardice explains the fail
~ ure to tap lower incomes to get the rev.
enue the government so sorely needs. And the
men who drafted the rates we believe, under
estimated both the patriotism and realism OF
the citizens whose incomes they refused to
touch. A majority of the citizens who in
these times have incomes ranging from $780,
600 to $4,000 to $4,000 to $4,000 and much
lower. we believe would not resent being called
upon to pay more in direct taxes. Most
Americans do not begrudge paying their pro-
portional share of the governments expense.
The average family income is below $4,000
year. All whose incomes are above the average.
taxing their incomes proportionately, both
to meet the present emergency and as a step
toward readjustment of our whole Federal
tax system. which now depends upon invisible
sales and nuisance taxes for SO per cent of its
revenue These hidden taxes fall heaviest
on the multitude whose incomes are below
the average, and scarcely touch the very
rich
Compared to what it might have BEEN the
inheritance tax schedule is utterly empty as
a revenue producer. mere sos 100000 a
year is all it will yield That sum is espe-
Cially insignificant when it is remembered
that the President wants to segregate the re-
cepts of this tax TO apply against the ma
tional debt. Conceivably, all other factors be-
ing favorable and the interest bill being met
otherwise. that amount of revenue could re-
tire the public debt in about 1856 years. Here,
too, the bill drafters were vote-conscious, ex-
empting $4,000 inheritances to blood relatives
and $4,000 inheritances to others. 1t is a sad
exhibit in a government which levies nviSi-
BILE taxes on the necessities of the poor.
AS it now stands. this tax bill won't even
shade the color of the red ink used in the
treasurys daily statement.