The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1936-08-25
Tax Issue, As Always, Now
Looms In Campaign Program
Important Subject Becomes
Intertwined With Gen.
erai Business Situation
Throughout Country
BY BYRON PRICE

BY and large, year in and year
out, there is no more touchy issue
in politics than the issue of tax
alton.
Not only is the pocketbook
nerve among the most tender, but
talk about taxes always intert-
wines itself with the general bust
ness situation. Heavy taxes strike
at the top of the industrial struc-
ture by curtailing the net profits
of the Big corporations, and at the
bottom by restricting the spend
ing of the average citizen.
In the current period of depres-
sion or of recovery (take eyour
choice), these considerations are
bound to apply with special force.
The evidence that they do is fur
nished by the alacrity with which
the Republicans raised the crv of
politics" after the Roosevelt tax
conference.
Republican Chairman Hamilton
greeted this event with a big laugh
but others in his party were both
fervent and caustic in their pro-
tests. The general Republican re-
action quickly established an ex-
recitation that Governor "La.ndon
would have something to say, in.
an early campaign speech, about
the fiscal situation of the federal
government.
Setting Lends Importance
The principal public develop
ment emanatlng from the White
House tax confab was a statement
by Secretary Morgenthau. 1t set
forth a conclusion, based on cur
rent conditions, that no tax in
crease appeared necessary" now.
Ordinarily that might not be
regarded as a very startling OBJ
servation. For one thing, the new
fiscal year beginning July / was
only six weeks old; most of it's
uncertainties still lay ahead. For
another, congress had just been
permitted to quit two months pre-
viously without any hint that any
one was thinking mex taxes me
cessary."
What Mr.. Morgenthau had to
say was given setting, however
which could not fail to attract at
tention. To hear the news Chair
man Harrison of the senate fl
nance committee had been sum-
moned from busy primary camp
align in Mississippi, and Chairman
Doughton of the house ways and
means committee called suddenly
back from North Carolina.
After many mysterious specula-
tons overnight, the two congress
sional leaders were ushered into
the White House at an unusually
early morking hour. The stage
was set for momentous and pos
sibly historic developments. Then
the breathless public was given
the Morgenthau statement.
Speculation Is Rife
Now there may have been valid
reasons why so much was made
of this event. If so, the White
House preferred to leave those
reasons to the imagination. for it
made no comment.
Republican speculation went
long way. 1t played with the word
necessary" on which so much
seemed to hinge. Did Mr.. Morgen-
thau mean the budget could be
balanced without new taxes, or
did he merely mean increase
would be unwise now in spite OF
the deficit?
Was the White House meeting
wholly divorced from politics. and
was it a fully legitimate action on
the part of responsible admins
tration to reassure business at a
time of economic upturn?
Probably the answer to this last
question does not matter greatly
Confined on Page Four)