The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-09-04
NEWSPAPERS OPINIONS
THE LANDoN TAX PROGRAM

In his Buffalo speech, Governor Landon courage
ously and unequivocaly criticized sales taxes ane
other indirect levies on the consumer. he also
nIodged himself to repeal the corporation surplus
Tow which he described as "cockeyed" and wi
cious," He states his belief that "the government
boul6 raise the major portion of its revenues from
direct taxes levied on the net incomes of indlvdu-
ais and corporations"
To meet his pledge to continue all necessary
emergency spending, to meet his pledge to. balance
the budget with utmost speed it is clear that Gov
ernor Landon will require federal revenues at least
as large as those being collected in 1886 Yet Gov
ernor Landon proposes first to repeal the corpora
tion surplus tax now estimated to produce Sooo'-
ooO 600: second, he indicates his desire to repeal
MANY of the present indirect taxes, which bring IN
.'51 cents out of every dollar"
How. then, does he intend to make up the differ
erce? What, specifically, is the Landon tax pro-
gram? According to his speech, direct taxes leVleu
on the net incomes of individuals and corporations
must fill the breach 1t may be that revenues on
the present rates of income taxation will increase
if business boom really comes. Governor Lanaoh
NAV also be able to reduce federal expenditures
somewhat, although he will do very well II ne can
reduce them as low as present Immediately pros
pective revenues And, since he proposes to REJECT
some present revenues, and alter the nature OF
others from indirect to income taxes, the concu-
sion is clear.
II is that Governor Landon, with great daring
roarv preuoses to broaden the base of present in
come taxes, both on individuals and corporations
reducing income-tax exemptions, and perhaps even
increasing the rate of income taxes beyond the
present 4 per cent. How else would he make up
for the indirect taxes and the profits tax that ne
would discard? ...,..,....
This newspaper believes, in common with many
tax reformers that to take the large part OF gov
ornamental revenues from income taxes would make
for better citizenship 1t would make every cltlzen
know lust what government costs him. 1t would
cause citizens to object to every unnecessary ou-
expansion of government, every extra
expenditure.
But it would be an enormous political task to
carry out Congress-particularly the Democratic
Senate, which is inevitable until 1938-mlght well
refuse to pass legislation commonly regarded as
politically suicidal Sales and other indirect taxes
are politically ''easy" income taxes are politically
"hard" If by a vast exercise of leadership Cover
nor Landon were able to repeal not only the cor
poration surplus tax but many federal indirect
taxes, he would work a great reform.
Whether he should do what his speech implies,
and repeal or greatly reduce the federal liquor tax
which brings in almost half billion dollars annual
", or the federal tobacco taxes, likely to bring IN
another half billion, is separate question. To
many people these taxes have social well as fiscal
merits.
What Governor Landon is really proposing is
AYnar IN
history Such reforms inevitably must surmount
great political Observation-Disclosures science Mon
itor.