The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-31
FRIDAY. JANUARY 81, 1896.
THE INEVITABLE GUEST

THE Federal tax collector is coming for a special
visit to our house-that means your house. too
An unwelcome but not an unlimited guest
The invitation extended by our ruers-the
Congress which voted the veterans bonus over the
Presidents veto, and the Supreme Court which
struck down the processing leves that enabled each
crop to pay its own way in the AAA planned farm
program.
On plea of hard times we may be able to post
pone little longer that other protracted visit at
which the tax collector will take of substance to
pay our governmental depression relief bills But
this special visit to pay off promises to the soldiers
and the farmers is not one that can be postponed,
without the risk of having another visitor some day
move in us and disspate our substance by inha-
ton. Fer the bills to pay veteran and farm sub
sides will continue TO fall due even if prosperity
shuts off our expenditures for relief.
-Four weeks ago the President sent to Congress
a tentative budget for the fiscal year, balanced
in all respects except to undetermined amount
that will be needed for relief purposes But before
that budget was read the Supreme Court yanked
out estimated receipts of about half a billion dol
lars earmarked for the farm program
few days later Congress added to the outgo
column about two and onc-quarter billions to pay
off the bonus. All of it, of course, will not be
as the veterans cash their bonds Yet if we are to
retire the whole of this enhanced bonus within nine
years-by 1s45, the year the smaller original bonus
was scheduled for retirement-that will mean
outlay of one-quarter billion year And if are
to have new farm program the same scale
the old one, one-half billion year, that will mean
a total of three-quarters of billion annually that
will have to be raised by taxaon-ignoring entirely
the relief expenditures.
GO the time has come for us to think of how we
~ are to accommodate the tax collector when he
calls
Some of rulers in Congress suggest that we
draw upon our liquor chests to satiate the tax COL
lectors greater appetite They suggest so per cent
increase in Federal liquor taxes and tariffs. But
since liquor and tariffs already so high that
many Americans stock their liquor chests with
cheaper bootleg brands it is doubtful whether in
creased rates would provide very much of the addi-
tioral revenue the tax collector will demand.
Others in Congress suggest blanket manufac-
turers sales tax That would mean that the tax
collector not only would reach into liquor chest
but would sit down at our dinner table and levy on
the clothes in the closet the furniture in the parlor
and the carpets on the floor. Some homes have no
carpets But he would levy on the soap used to
scrub the floor.
Rather than permit him to enter our homes and
take from by the stealth of hidden taxation, we
believe it would be far better to meet the tax gath
at the door, pay his bill on sight and send him
away.
That means visible taxation, such as taxation on
income pro-rated among U.s. each according to his
ability to pay And if such tax is levied by broad
ening the base--on midde-class incomes well as
upper-class incomes, graduated from the bottom up
ward-then we can raise enough revenue without
unfairly burdenng any
But if we submit to the sales tax alternative, the
greatest burden will fall upon those whose incomes
are too low to be taxed.