The Indianapolis times., 1935-08-13
TUESDAY. AUG I3. 1885.
TAXING THE JONESES-H


- remember this middle-class family as the
one whose tax budget We examined in these
columns some time ago. You may recall that
we figured that John and Mary Jones pay an
income tax of $3.50 on Johns $500 white
collar salary.
The reason for taking another look at the
Jones family budget at this time is the La
Toilette proposal to reduce income-tax exemp-
tions from $500 to $1,000 for married couples
and from $1,000 to $500 for single persons. The
Joneses have one child little oscar, and there
fore their exemption would be reduced from
$1,000 to s24OO. They would have to pay $40
more in income taxes. Instead of $780, they
would pay $3.50.
Evidently the La Toilette plan hasn't more
than a fighting chance Of becoming law at this
session But at least it will be debated. The
Senate Finance Committee, which approved
the plan Saturday, repudated it Monday, after
being reminded over the weekend that it was
politically dangerous to harbor any plan that
would tax the voters in way that would let
them know about it.
THE committee members apparently were
Il frightened by Senator Borah and others
who cried aloud against this proposal to add
to the tax burden of the little fellow" 1t
might be observed in passing that while the
Joneses are little fellows" compared to the
5000 ,OOO-a-year Astorbilts who live in another
part of town, they are big fellows" compared
TO the s20OO-a-year Smiths who live across the
street and the s12CO Browns who live two
blocks down the street. Our national statistics
of income, which class the Astorbilts in the
upper l per cent. also class both the Joneses
and the Astorbilts in the upper per cent,
leaving the legion of Smiths and Browns in
the lower 95 per cent.
These statistics make Mr. Borahs view
point seem queer. but interesting.
We. too are opposed to increasing the bur-
den of the Joneses. But to make our opposi-
ton intelligent. we first found out what con-
stitutes the Jones familyS tax burdens. You
may recall that in a recent editorial we
itemzed. tax by tax. the hidden Federal levies
which the Joneses pay on their small automo-
bile, on gasoline and motor oil and tires, on
cigarets and matches and beverages, on movie
and ball games and prize fights, on their radio
and electric refrigerator, on cosmetics and
toilet articles and chewing gum-on multi
tude of necessities and petty luxuries that go
into their household and day-by-day living
expenses.
The total of those unseen Federal taxes
paid by the Joneses was S4913, under the most
conservative estimates We could make So
even if political miracle should make the La
Toilette proposal effective, increasing the
Joneses' income tax to $780, the major part
of their tax burden still would be that which
they pay in hidden consumption levies
TINE most vicious feature of the hidden
taxes is that they are proportionately
much lighter on the Astorbilts than on the
Joneses, and still heavier on the Smiths and
the Browns. Such taxes soak those who have
so little they can't afford to be thrifty
If Mr.. BOrah and other champions of the
"little fellow" really want to ease the burdens
of the Joneses and Smiths and Browns, they
should attack the hidden taxes. Yet, We seem
to remember that recently when the so-called
emergency sales and nuisance taxes were ex-
tended neither Mr.. Borah nor any other men,
Der of his lodge raised finger. They seemed
quite content to let the government continue
picking the pockets of the little fellow. But
how they bristle at the s1sgestion Of a smaller
draft on incorc, a tax which the taxpayer
would see and feel
1t is true that higher taxes on income do
not carry a guarantee of repeal of any of the
sales and nuisance taxes. But a schedule of
taxes taking a little more of the Joneses fam
ily income and a lot more of the Astorbilts'
income would provide the government with
revenue 1t has to have. And if enough revenue
en- be obtained by taxes that are graduated
in proportion to ability TO pay. then consump-
tion taxes can be repealed. But not until then.
Indeed unless the revenue is obtained by
ability to-pay schedules, even more pocket
picking sales taxes probably will be levied
against the Joneses the Smiths and the
Browns. Either that or the government may
try TO set out Of the red by turning on the
money printing press And history will tell
you what printing press money does to the
little fellow.