Evening star., 1935-08-05
'SOAK-THE-THR|FTY
HIT AS SPITE TAX
Bill Regarded as Roosevelt
RepriSaI for 0ppoSi-
ton to Program.
BY DAVID LAWRENCE.

BY DAVID LAWRENCE.
Since President Roosevelt's tax bill
Is estimated to raise about $3.50 900, 900
just enough to run the Govern
ment for less than a month--it is not
being regarded as a serious attempt
to balance the budget or even as a
beginning of that process, particularly
because the deficits are running around
s.. 3.000, 900 900 a year.
What. then. is the purpose of the
"soak-the- thrifty" bill, as 1t has been
called?
A well-defined impression is arising
here that the measure about to pass
the House this week and insisted on
by the President as must" legisla-
ton is nothing more nor less than q
spite" tax.
Declared Reprisal.
The idea of penalizing and punish
ing business and the corporations gen.
orally, as well as individuals of large
spcnsibility, whose incomes are COM
mensurate with that responsibility, is
believed by those who hold the theory
Of punishment to be the direct out
growth of the fact that business has
availed itself of the courts to defend
its rights.
The N. r. A. decision was a body
blow to the New Deal, and Mr.. Roose-
welt in his press conference of May 81
hinted mySteriously at other steps he
! intended to take. apart from a con-
stitutional amendment, to enlarge the
Federal power over commerce. The
message he sent to Congress advocat-
ing drastic taxation had not been
heard of prior to the N. r. A. decision;
in fact, Democratic leaders in Con-
gress were of the opinion that every
thing OF major importance had been
submitted by the President for the
present session.
Regarded Surprise Attack.
But the message had all the ear
marks of a surprise attack on the
thrifty and the business executives, as
If it we're a means of getting even with
them for their assaults through the
courts on the administration. The
idea that the courts must not be used
to protect ones rights has gotten to be
a sort of fetish with the Roosevelt ad-
miniStration. 1t has sponsored two far
reaching measures to deny the right
OF citizen to sue the Government
and get damages The king-can- do
no. wrong theory is closely allied with
the doctrine that to seek protection IN
the courts is improper.
Thus Mr.. Roosevelt, in discussing
with the press the question of taxes
paid by the more successful people of
the country. pointed out that when a
person of the latter group hires a
lawyer and finds that the law can be
construed in his favor 1t is called tax
avoidance" but that when 9 poor
man. is caught 1t is characterized as
evasion
Attorneys Cost Money.
Under an efficient and impartial ad-
ministration of the revenue laws 1t
ought not to be necessary for anybody
to hire any tax lawyers to get square
deal at the hands of the Government.
And if what Mr.. Roosevelt says is true.
then it is a confession that 1t costs
considerable money to fight arbitrari-
ness and unfairness in the interpreta-
ton of the tax laws, something that
might be considered reflection on the
very fine corps of tax officials in the
Government service. who, though
hedged about by conflicting rulings and
interpretations, do try to give the tax
payer an opportunity, whether with or
without an attorney, to present the
facts of any case in dispute.
The New Deals spite tax" il that
is what it really is, aims to force the
little as well as the big businesses to
bear the penalty of an unsound tax
program.
Held Lacking Sportsmanship.
The impression that Mr.. Roosevelt
is really trying to find ways to exact
reprisaS against those who have
fought his policies is unfortunately
growing, and it Is all the more regret
table because it carries an implication
of lack of sportsmanship on the Presi-
dents part in accepting the fortunes
Of legal warfare and the tenets of
constitutional theory as outlined by
the Supreme Court of the United
States
1t is significant that a note of such
regret appears in a published inter-
view with George A. Sloan, formerly
chairman Of the Cotton Textile Code
Authority, and a man who stood
stanchly by the President and the
New Deal during the whole N. r. A.
experiment. Speaking of the gradu-
sted income tax on corporations, he
says:
Adding to the cost of business, it
will make wage scales achieved under
the N. r. A. more difficult to maintain.
Its tendency will be to lift prices,
thereby curtailing opportunities for
employment.
However much color this incredibly
unsound proposal lends to such ru-
mors, I cannot believe the administra-
ton is determined to punish business |
for the collapse of the N. r. A. and |
for the growing unpopularity of some
other aspects of the New Deal. There |
is no excuse for penalizing big buSi-
ness merely because it is too big or
for any other similar appeal to class
prejudice.
The industry Of this country, If
properly encouraged, can and will pro- !
vide the leadership to get us out of |
this emergency"
Mr.. Sloan puts his finger on the
most delicate problem OF the Roose-
welt administration-how to bring |