Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-08-27
Landon Offers Fiscal Program
Would End "Cock-Eyed" Corporate Tax and Substitute
Direct Tax for Hidden Levies

II Il l.
BUFFALO, N. Y, August u P).-
Gov. Aft M. Landon's address follows
In full text:
Tonight I want to talk about the
financial problems of our Federal
Government and their effect upon
lis as individuals. In other words,
I'm going to talk about our Gov
eminent as a spender of part OF
the money we work SO haro 10
earn. This is proper approach
tn the question, in my judgment,
because the Government has no
money except the money 1t gets
from US.
There are some people who seem
To believe that the Government
can create money. That is not
true. All it can create are promises
to pay money. This is what IL
does when it issues paper money
or sells bonds. In principle, this
is similar to what we do when
we open a charge account at
store. We get something now and
promise to pay for it later. II we
charge more things than we can
pay for, our promises to pay be-
come worthless. The same is true
of government.
So, if we are to be realistic IN
our thinking, about Government
finance, we must think of the Gov
eminent as almost member of our
family-a member to whom day by
day. week by week, year by year
we must give part of what we re-
ceive in our pay envelope or part
of the crops we raise. We must re-
member that every time the Gov
eminent spends dollar, that dollar
will have to be paid by us or we
must pass the debt on to be paid
by our children. No parents like to
leave their children a heritage OF
debts and mortgages. But the crea-
ton of a staggering public debt
closes the door of opportunity to
the youth of America just as GER
tainly as a staggering private debt.
We must face the issue squarely.
The present administrations daily
mounting deficits are closing the
door of opportunity to your chill
dren and to my children.
Liability Same
As in Private Debts.
We must not lose sight Of the
fact that a public debt is just as
much a liability to each and every
individual as a private debt. The
fundamental principles of govern
ment finance are exactly the same
common sense principles that We
follow in the handling of our own
family finances. So long as our
Government follows these prin-
ciples our people will prosper.
They will be able to weather de-
preston, drought and other dis
asters. But if our Government dis
regards these principles it squan-
ders our resources and destroys
the public credit.
Now. what are these principles?
In broadest terms there are four OF
them.
The Government must guard and
preserve its source of income.
The Government must make
sure that it gets a dollars worth
for every dollar it spends.
The Government must not get IN
the habit of spending more than it
receives.
Finally. the Government must
prepare for the rainy day.
These, in brief, are the four
great principles which prudent,
foresighted head of family fol-
lows in the handling of his own
finances. They are the same four
great principles which a prudent,
foresighted Government must fol-
low If it is to meet the financial
demands made upon it by an in
creasingly complex civilization.
Now, let us examine each of the
four principles in turn:
The first is the question of
guarding and preserving the source
of income Fundamentally this Is
a question of the fairness Of the
kind of taxes that are levied. Are
they direct taxes levied according
to our ability to pay, or are they
indirect taxes levied without re-
gard to our ability to contribute to
the support of the Government?
1t has always been my belief
that the Government should raise
the major portion of its revenue
from direct taxes levied on the
net incomes of individuals and
corporations. When this is done
every one pays for his fair share
and knows just how much the
Government is costing him.
have constantly worked for legisla-
ton in Kansas to prevent conceal
ment of the cost of government.
On the other hand, if the major
portion of the Governments in
come is obtained from indirect and
hidden taxes-taXes upon such
things as food, clothing. gasoline
and cigarettes-then the main
burden falls upon those of small
income and the cost of govern
ment is hidden. In this case it is
the wage Garner, the salaried
worker, the farmer and the small
business man who have to pay
most of the bill. Now, let us turn
to the record and see just who is
paying the cost of our Govern
ment.
Al Per Cent of Taxes
In Hidden Glass.
What d0 tho fip11rnc of Tho