The Republican. [volume] (Oakland, Md.) 1877-current, 1936-05-21
THE GREAT
GAME OF
POLITICS
By FRANK r. KENT,
Copyright by the Baltimore Sun and
reprinted in The Republican by
special permission.
Second Time In A Year
By FRANK r. KENT,

SeCOItu lILlC 1I IN col
The more the facts about this Ad-
ministration tax proposal are studied,
the more amazing an example it be-
comes or responsibility and incompe-
tency in fiscal affairs. Not even the
Social Security Act is typical of the
Undetermined and misplaced energy
of what William Allen White calls the
Rhetorical Rollo Boys" who originate
these strange legislative devices. If
the Republicans were alert, this one
could-and should-be made an issue.
1t is striking illustration of the utter
untrustworthiness of the Roosevelt ad-
visers. It is another example of blind
| alley leadership.
Here is vital measure, prepared by
the Treasury and submitted to Con-
gress by the President. 1t is jammed
through the House without real debate
or understanding by those who
sponsored it in committee and on the
floor. The declared purposes of the bill
are-frst, to raise $500, 100000 in new
revenue; second, to revolutionize the
present system so as to tax the sur
pluses of large corporations which
it. is claimed evade taxes. This was
! hailed as a great reform. The big sur
pluses were to be driven out in the
| open.
When the bill got to the Senate COM
nlittee, Senate leaders predicted speedy
passage. They were all prepaid to sup
port the House bill. 1t was going
| through as slick as whistle and in
record time until Democratic Sena-
tor-Byrd, of Virginia-who happens
to have a mind of his own and courage
enough to stand up and fight, pointed
out that the bill clearly would do
neither of the things it proposed. II
would not raise anything like the rev.
enue needed, and it would not tax the
SURPRISES of the big corporations. In
other words, the bill was bunk. Instead
of driving the big SURPRISES out in the
open it enables them to escape taxa
ton altogether, while the effect of the
new taxes literally would be to muir
der thousands of small corporations
employing thousands of men and Who'll
ly dependent upon their surpluses to
keep from laundering.
| There was no real answer to these
points-and there is no real answer.
From the minute Senator Byrd made
the charges, the bill was doomed. Dis
mayed, the Treasury officials fioun-
dered. Other Senators on the COM
mittee sprang to the attack. In two
days the Treasury was in retreat;
word same that the "White House"
was willing to compromise" and the
unfortunate Senate leaders were left
looking silly and feeling sore. 1t is
the second time they have been kicked
this way in the same place. Their abil-
ity to stake it" is one of the marvels
of modern day politics. The only sign
of suffering they give is in the panied
nature of their press explanations and
the hunted look which comes into their
eyes when questioned.
| &**
Last Thursday Senator Byrd put
into the record a list of 139 corpora
lions which, under this bill, would pay
no tax at all. They included the Amer
lean Telephone and Telegraph Com
pany, the American Tobacco Company,
the United States Steel, Bethlehem
Steel and Standard Oil. He cited a list
of 100 whose taxes would be reduced
from so to 80 per cent, and some 800
more which would get reductions I'M
der fifty per cent. In brief, in total
of 900 of the biggest corporations in
the country the Administration would
have exempted 139 altogether, reduced
160 by more than one-half and given
some reductions to the rest. The Treas
ury officials countered with list of rs
corporations which would pay more
taxes, but made no denial of the Byrd
figures.
The whole business is battling. 1t
is difficult to believe that the Admin
istration should again have sent to
Congress and tried to put through in
rush tax bill which the Treasury
itself did not understand, and which
had to be abandoned at the first attack
and which it is now clear would have
been disastrous had it gone through.
Yet that seems to be exactly what
was done and it is the second time in a
year. The net result is that once more
tax bill will be thrown together in
hasty, hodge-podge manner and en-
acted without the advantage of the
thoughtful preparations essential to
soundness. Bewildered by the begging
m