Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-05
Revenue or Reform?

Means Committee have been reading
the Constitution. They have particu-
larry looked into what that document
has to say about taxes. They have
found, for example, that section 8 Of
the first article of the Constitution
reads: THE Congress shall have power
to lay and collect taxes, duties, irnpostS
and excuses to pay the debts and pro-
vide for the common defense and gen.
eral welfare of the United States"
President Roosevelt in his recent tax
message to Congress laid down the
proposition that taxes must be collected
not only to raise revenue needed for the
conduct of the Government and the
safeguarding of the people, but to bring
about a better social order. At con-
ference with Chairman Doughton and
other members of the House Ways and
Means Committee, the President is re-
ported to have reaffrmed his concept of
tax legislation as social measure.
Chairman Doughton seems to have
some very definite and different ideas
regarding the taxing power of the Fed
eral Government He is quoted as
saying, upon leaving the White House:
1--WE have no constitutional right to levy
taxes for any other purpose than to
raise revenue. We feel that we can
get more revenue without injustice to
any individual" Furthermore, the Ways
and Means Committee of the House is
likely to insist that 1t be allowed to
draft its own revenue bill, after having
obtained full data from the tax experts
OF the Treasury Department. The
members have read in the Constitution
also that all bills for raising revenue
shall originate in the House of Repre-
sentatives. But the Senate may pro-
pose or concur with amendments as in
other bills"
No measure will have more interest
for the people Of the United States at
the present session of Congress than the
projected tax bill will have. This meas
ure, which apparently was conceived by
than as q revenue raiser, is to be broad
ened In scope. 1t Is to touch the incomes
of persons who have less than a million
dollars annual income. 1t is to fall more
heavily on moderate inheritances, and
on corporation incomes. It Is not to
be merely a political gesture to appease
their followers. It is to be tax bill
that will raise revenue to pay the huge
debts which the New Deal administra-
ton has amassed. IF it Is such
measure, then the people may the
quicker turn from Joy in Government
spending to an earnest desire for some
economy In government.
Democratic leaders are not unmindful
that the imposition of taxes on a large
number of voters on the eve Of a ma
tional election may prove political
boomerang. How far are they willing
to 60, therefore, In the raising Of revenue
to meet the very real needs Of the
Federal Treasury. needs that grow
greater with every New Deal expendi-
ture? II the President believed that it
would be possible to make "soak-the-
rich" and "share-the-wealth" gesture,
and halt there, 1t may be that he over
shot the mark. There has been a
vociferous demand for taxes that will
more adequately meet the Governments
needs. The estimates of what the
administrators program would raise
have shown q meager $1oo,00o,0 900 to
$200,0OO,O00.
Starting next week the Ways and
Means Committee of the House will
begin the preparation of the tax bill.
VIII it labor and bring forth a mouse2
Or will it bring in real revenue
raising bill?