The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-03-14

paid, but as The maximum
amount. Actual amount may be
5000, or $40. or 81, or nothing
at all, depending upon the
amount of the taxes collected
above the costs of collection.
TINE United States Census Bu-
l. reau has estimated there are
now II 100000 people over so years
of age. Less than 100000 of them
were not American citizens in
1913 and that number is consid-
cradle smaller now.
Under the McGroarty bill, also
people who have an income of
$4,000 a year are not to be eligible
to pensions.
In the total population, consid-
erably less than 10 per cent have
gross incomes of as much as $1,000
a year, and in all probability hat
percentage is even less among the
people over go years of age.
If l 100000 people over go years
are excluded from the right to
share in proceeds of the Town
send taX-which is an outside
estimate of the possible exclusions
100000 people are left to be
pensioned at the very outset, and
5000 a month to 100000 people
is a cost of two billions a month,
of "a billions a year.
The two other taxes contem-
plated in the McGroarty bill could
not possibly yield more than two
billion dollars year. That would
leave % billion dollars to be
raised through the Townsend
transactions tax.
EOR some unexplained reason,
l. DR.. townsend now estimates
100000 as the number of peo-
pie over so years of age to be
pensioned, although earlier he
estimated 100000.
AS there are 1850, 900 people
over so years of age, the question
naturally arises why the other
100000 would not receive pen
sions.
That is approximately the num-
Der of people over so years of age
now gainfully employed. Per-
haps DR.. Townsend assumes that
very few people over go who have
jobs or farms or businesses would
retire
That, Of course, destroys all
arguments offered by the Town
send organizers to the effect that
the Townsend Plan would create
millions of jobs for young men.
But, taking DR.. Townsend's
latest estimate of the number of
pensioners, 5000 month for
100000 people totals one billion
six hundred million dollars a
month, or nineteen billion two
hundred million dollars year.
DR.. Townsend and his economist,
DR.. Doane, estimated that the
total cost of the pensions for
100000 people would be eight
cen billion dollars, which is one
billion two hundred million dol
lars less than pensions of 5000 a
month to 100000 people.
In 1882, the U. S. total of all
taxes for all purposes by all gov
eminent units was a little more
than eight billion dollars.
This total is probably no greater
now, but let us say that it is nine
billions. This is only half of the
amount Dr.. Townsend expects to
raise through his transactions tax.
HOW heavy a burden the
l. Il Townsend tax would prove is
clearly apparent when the total
of $4,000, 900, 900 is reduced to the
amounts which will fall upon the
people of each state and to what
this tax will cost the average
family.
Let us take Wisconsin, with al
most exactly "a per cent of the
population of the United States
and in every respect an average
state.
1t is fair to assume that the
people of Wisconsin would have
to pay "a per cent of the total of
the $4,000, 100000 which DR..
Townsend expects his transactions
tax to produce. this "a pc. cent
being S432,000,0Oo.
AS there are 100000 men,
women and children in Wisconsin,
this tax amounts to an average of
SO month. for every man,
woman and child.
This enormous burden is inn
posed in the Townsend Plan an
nually and is additional to all
other taxes now levied. Moreover,
it is important to remember that
this tax would. be collected for
four months before any one re-
ceived an old-age pension.
During these four months, on