Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-28
C0ST|GAN LAUDS
MESSAGE ON TAX
Adaptabi|ity to Future Par
ticuIar Merit, Says
Forum Speaker.
Continued From Fourteenth Page)

tatorial economic powers, shall not
be transmitted, without guarding the
general welfare; that the piling up OF
enormous fortunes by government
favor shall not be encouraged, and
that control of concentrated wealth
in corporate forms shall not be left
without effective regulation.
The ability of our Nation to survive
the hurricanes on our economic seas
Is intimately associated with such rs
cal policies. No government, faced as
ours has been during the last six years
nv economic disaster, is really nation
il it lacks the power to collect ade-
ouate taxes to be used in the public
interest. Since 1929 the lack of such
authority would have permitted the
starvation of millions of our citizens,
with our Government impotently look
ing on. That inability would have
robbed us of the power. through relief
and employment on public works, to
render first aid to a credit-Stricken,
exhausted and all but paralyzed ma
tional economy. Indeed. balancing
the budget from such taxes should also
be condemned by those who contend
that legislation is invalidated when
social consequences enter the scene.
In other words. such consequences
often flow from legislation, with or
without legislative intent. We should
at all times frankly acknowledge that
social and economic consequences are
inherent in most legislation. President
Roosevelt. therefore, in recommending
such tax revision, has rendered pub
tic service by putting fairly before the
Nation the great ends he has in view.
Returns Speculative.
The country will wish to know how
large return may be expected by the
Federal Treasury from the proposed
additional taxes. Any answer must be
speculative at present. Even the meas
ure prepared for consideration by Con-
gress is involved in uncertainties and
is subject to change. Widely different
estimates, ranging from minimum of
about s340, 100000 annually to a maxi
mum of almost three times that
amount, have been given publicity.
Such variations necesSarily-and par
ticularly at the highest level-indicate
indulgence in fanciful inaccuracies.
No one should be surprised if actual
returns the first year are lower, not
higher. than any present forecast. In
any event. substantial additional tax
returns will be assured by the adoption
of the proposed legislation. These
should also. eventually. be capable of
increase. and of course the issue Of
legislative principle, already discussed,
Is Of first significance.
Concluding his message the Presi-
dent touched popular chord by rec
ommending long-delayed submission Of
q constitutional amendment by Con-
gress to the States for ratification
Such an amendment would eliminate
hereafter issued Federal and State
tax-eXempt securities and would rem
Ger them mutually subject to taxation
Half a dozen such proposed amend
ments. including one offered by me
both at this and the preceding session,
are now pending before the Judiciary
Committee of the Senate. 1t is hoped
that an adequate draft will be reported
without delay for congressional ap-
proval.
President Roosevelt has thus re-
peated a recommendation which has
been officially made in recent years
by different administrations, regard
less OF partisan affiliations. All tax
experts realize that the States and
the Federal Government alike have
provided in tax-exempt securities
retreat in which idle wealth hiber-
mates. The tax potentialitieS in this
field are large. On May 81 of this
year wholly tax-exempt Federal, State
and municipal securities, actually in
the hands of the public in this coun-
try. amounted to S31.641 100000. This
does not take account of substantial
amounts of outstanding partly tax
exempt securities. The total figures
necessarily vary from time to time
with the retirement of old and the
issue of new securities.
Here Is closed door which, il
opened. will make available extensive
revenues for budget balancing. debt
retirement and other necessary pur-
poses. We cannot afford to con-
tinue Indifferent to such resources.
We have travelled too far in our con-
test with economic disaster to deny
that, as in war, we must be prepared