Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1936-06-05
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Bn0dhob
~ JAMES PREsroM

The plans Of some Of Washing
toms highest and mightiest strate-
glsts went sadly astray on the tax
Dill. The biggest slip was when the
Senate Finance Committee. con-
fronted with demands to raise ST.
1877, 100000 in new taxes, began looIt-
ing wistfully at the pocketbooks of
Individual taxpayers-and voters.
House chiefs had stalled off any
serious discussion OF whether to
levy new taxes upon the incomes of
individuals. They built ND the tax
bill as a tax on cOrporations-and
not only on corporations, but on
corporation surpluses.
In that fashion, some Of the plan /
ners frankly but now sadly admit
they intended to keep the voting
taxpayer at ease as to where the
money will have to come from for
initial payments on the mushroom
ing debt.
The conception of the sO-called
corporation surplus tax was gener-
ally considered a political master
stroke. But the Senate revenue
raisers soon discovered what econ
Omists had been saying for months:
First, that no matter what taxes are '
levied, they eventually come out of
the pockets of consumers, which 4
means everybody; second, that Il !
would be virtually impossible to '
raise $1,137 100000 in the manner
without permanently
harming some small and growing 0
Industries considered necessary to a
The problem became an even big ~
ger one when Secretary Morgenthau
Predicted a deficit of nearly $6,OOO- =,
100000 for this fiscal year. And that, NJ NJ
If course, would be added to the VI
present $31,592, 100000 debt. 81
The search for revenue made it u
obvious to the legislators u
but more than that, to a lot of -,
heir constituents-that the ST. ~
81 100000 sought in the new bill WI
7ould be but a drop in the bucket. >; stI
wouldn't be enough to retire Jel
ime of the present debt. W.. we
O.
her generally unpleasant effect: e eo
strengthened the doubts of a lot MI
businessmen as to what might be
1ne to them. Industry's complaint, az ~
accepted by large major Mu
y of legislators as legitimate, was
lat it could not bend its every eff T.,
TT toward recovery so long as the
X future was uncertain. As con- "ie
Iteration of the tax bill neared its Vi
d, it became evident that this me III
ar's revenue raiser was just one VA
a series and that the whole thing n Z
II have to be done over next year.
O. As-Aii
There has been another instance g gIl
the miscarriage of well-laid "a
ans. It is reported, and not off NJ N
lily denied, that President Will enu !
m Green of the American FEEDER Vi
on Of Labor threw his influence N. M
linst the inhationary Frazier IN UNI
nike farm mortgage bill in return WI onI.
promises to expedite other meas sun a.
IS in which organized labor was ~, NJ
crested and which would eVentu- " NJ D
Y raise the costs of things the -naI
mer must buy. llial,
'hese bills, reputedly, were the "S Tl
enbOgen bill, setting up a little III
A for the textile industry despite sIa i
general improvement since in n n,a'I
dation of the original MIRA, and o oIo
Walsh-Healey bills. which ooll
ght to do the same thing for anu
IS contracting for government l puOl
mess. IN M
he Supreme Court, indirectly, n
led that plan. II invalidated the Je'I.l,
fey act, which, to a considerable ~.
mt, was the model for both the - ~
nbOgen and Walsh-Healey bills. H 1tl5
refore, if the reports are true, In In
r traded its opposition to the - ID 81
bill for a couple of ,n;.t,
r measures which had no chance NJ III
on. if they ever reach wa NJ y,
he statute books. obaii
1wever, this is but one of the w
wing pains of the A. F. of L. The ,,,, w.
lie of John L. Lewis, mine work. 3st
leader, to become the labor die GO SaS
?, and William Green, head of 1S
nized labor, to retain his post soboo
that of those now holding Office, se orDS
on and on. c,a,
ANJUSTNc HORSP TRADP 2 p. /