Evening star., 1936-05-10
BY MARK SULLIVAN.

ME nOO0E udS pdSScO, anu Lne
Senate now has before it, tax
bill. It Is said, and it would be
= easy to believe, that the bill is
not understood by as many as 10 out
Of the 267 Representatives who voted
for it. (253 Democrats. Progressives,
3 Farmer-Laborites, Republicans)
Quite likely it was not understood,
either by the 50 Republicans and II
Democrats who voted against it. But
these, at least, had the commonsense
virtue that was once proclaimed by
Democratic Senator "Vic" Donahy of
Ohio: when don't understand q
bill, vote Nay"
The complexity of the new tax
measure has raised opposition to it, or
disquiet about it, in quarters ordi-
narily friendly to the administration.
Scripps- Howard newspapers, prevail
ingly sympathetic to Mr.. Roosevelt and
the New Deal, have printed q series Of
somewhat jeering editorials bringing
out the algebraic, the even mystical
quality Of the measure. One para
graph Of the bill entitled, ironically,
Simplifying Taxation" reads:
SIMPLIFYING TAXATION-III.
"If the undistributed net income is
q percentage Of the adjusted net in
come which is more than 20 and less
than 80 land such percentage is not
shown in the foregoing table, the tax
shall be percentage of the adjusted
net income equal to the sum Of 3.5,
plus four-tenths Of the amount by
which the percentage which the undis-
tributed net income is Of the adjusted
net income exceeds 90"
Market Slump Noted.
About the time it became certain
the new tax bill would pass the House,
prices on commodity and stock mar
kets throughout the country fell
sharply. This may have been mere
coincidence-therea are reasons besides
the tax bill why the markets should
be agitated. Agitation Is likely to be
the prevailing condition Of prices for
. considerable time, possibly as long
as Mr.. Roosevelt remains President
certainly as long as there Is doubt
about whether the country is going te
experience imitation. When fear oI
imitation is added to the usual infiu-
ences affecting prices, the result L
jittery to q peculiar degree. Under
normal conditions, if markets fee
| L. IsHGa,,1fxy ohnaI yHrinae IrOv,
But when, as now. the possible calam.
tiles include imitation, the ultimate
consequence Of that particular calamity
would be not falling prices but sensa.
tionally rising ones.
It is no new thing for tax bill Il
be complex-the income tax law, since
1t was first adopted more than 20 year.
ago, has been too complex for any
layman to understand: almost a Who'll.
new profession, tax experts and tai
lawyers, has grown up under 1t.
Effect Of Measure.
What Is complex at the present time
and what causes vague apprehension
is not the new tax law as written; Il
ID Lx26 VI IACoAdCAAS 3sOooCfCAe
Uneasily people wonder whether Mr.
Roosevelt himself really originated ant
fully understood the measure he pro-
posed, or whether 1t was suggested *
him by members Of his brain trust WHIT
understood It all too well. For it is per.
fectly clear, and admitted by New
Dealers, that the intended effect o.
| the new measure Is not confined Il
raising revenue. A partial effect, ant
| In the minds Of the New Dealers pos
sibly the major effect, is reform-t
reform which would make q far
reaching change In the country's in
dustrial structure, another step towart
the new order"
It may be the new tax measure Is
as Q fiscal measure, perfectly sound
It may be that the whole conduct o
the country's fiscal affairs Is sound
It may be that America win not ex
perience imitation nor any other fisca
catastrophe.
Sees Changes Of Policy.
But II the country, or that portion
of it which understands, Is vaguel.
disturbed about the administration
management Of our fiscal affairs; 1
there Is uneasy apprehension, and !