The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-02-28
FRIDAY, FEBRUARY %, 1895.
RELIEF AND TAXES

THE relief problem is as great as it was year
IL ago. In some spots it is improved, and in some
it is worse. Here's how it breaks down:
\ Some IL to IA million people better off than
they were year ago, by reason Of the work-relief
wages paid to three and one-half million breadwin-
ners on WPA and other Federal projects.
4, Some six to eight million people are off.
They Of families living on doles paid by state and
local governments, generally lower and less certain
than the displaced Federal doles.
Most of the WPA and other work-relief projects
have been worth while, and accelerated government
Spending has primed private industry enabling it to
pump up increased profits and dividends and in
creased production of goods. Several hundred thou
sand heads of families formerly relief have gone
back to private employment But they have gone
of relief doles and relief jobs, others have taken
their places. That explains why there has been no
net improvement in the year Included babies
unborn year ago, and whole families which year
ago lived savings that have since been exhausted
z. So we still have today approximately 20 million
people dependent for livelihood on money collected
from taxpayers and borrowed against the taxpayers
credit.
n. These the hghlights of the national relief
survey conducted by the ScrppsH Howard Newspapers
ia "a cities, and reported by Robert s. Brown.
II. The picture is disillusionng to those of us who
have been hoping against our better judgment that
the relief problem would prove temporary one
nNE city after another told the same story The
II relief burden is great, greater or almost as
great in all the "a cities as it was a year ago.
n What we going to do about itP
b In view of the record, it would seem foolhardy
to continue harboring the deuson that we shall
wake up one bright morning to find the prob
lem magcaly solved by some abracadabra Of bust
hess revival Business has been getting better but
has to get whole lot better-better even than in
1920 for business up to the 1929 volume industrial
experts tell U.S. would still leave some five million
unemployed,
III We think it will get better-better even than 1929
eventually-but have no reason to believe that
eVentuality will come soon.
81 So the handling of this relief problem for the next
few years would seem to call for drastic fiscal action
Instead of spreading and more red ink on
the Federal ledgers each year, should start max
ing the deficit smaller, moving toward balance of
income and outgo That means economy on govern
nent activities not essential 1t also means more
taxation
H AS business recovery depends primarily upon
steady increase of purchasing power additional taxes
we believe, should be such as will do the least dam
age to purchasing power. Sales taxes come almost
altogether from purchasing power. Taxes based on
ability to pay such taxes incomes and inheri-
tances, for the most part skim off that which would
go not into purchasing power but into savings Taxes
of this type have the additional virtue of being
ible and painful
Rv he haSo ND urod roto
ward can raise substantial revenues and multiply
the number Of tax-conscious citizens. The more
revenue we raise now, the less We'll have to borrow
ana raise later. And more tax-conscious citizens
means self-appointed auditors of government
spending.