The Western news. [volume] (Libby, Mont.) 1933-current, 1936-02-20

running at the rate Of about S, 600 Co.,
600 4 year, with assurance they will
be Increased, some at this session of
congress. more to follow. State and
local taxes are running at the rate of
about $1,000, 100000 4 year. so that
the present tax burden Of the United
States Is about $17, 000, 100000 4 year.
with 4 certainty that 1t will be larger
before 1t IL smallerl
The figures, not the prophecy, have
been compiled by experts of the De
partment Of Commerce. They have
not been put In the form Of 4 finished
report rs yet, but the gist Of them has
been passed along to Treasury de-
partment officials and Administration
leaders OF Capitol BILL now working on
the present tax problem.
The startling fact IL that this makes
the average tax for every man, wom-
an and child In the United States $134
1 year. But this counts people on re-
lief, dependents whose relatives are
too proud to let them 20 on relief.
and a number Of other classes which
pay far below their average Of taxes.
Even the folks on relief pay some
taxes. Of course. ~ for instance the
federal tax Of six cents 1 package on
cigarettes. perhaps 4 little liquor tar
now and then. or oven occasionally the
ten cents pack on playing cards.
But when 1t IL considered that 90
100000 people, roughly. are on relief,
and that most Of them contribute very
little In the way Of taxes, the average
Of $134 per person should be marked
up considerably-far more than the
very heavy taxes paid BY the rich
would pull down the average paid BY
the middle class folks.
There II no scientific way OF CON-
putting this, but probably the average
paid BY each member Of Of the self
supporting family II not far from
$500 year. Which means that father
contributes m average Of something
like $500 to $1,000 In taxes, whether
he knows 1t or not, OF which his In
come tax II very small fraction In
deed unless fathers income goes we'll
up In the surfaces. In which case, OF
course. he will be paying I good deal
more.
What Smith Hit At
That II the sort Of thing AL Smith
was hitting at In his Liberty league
speech. when he said that 1t was no
use thinking OF paying this bill for
governmental expenditures by taxing
the rich, because the rich simply did
not have that much,
Interest rates play an important
part In this Redistribution OF wealth"
program. which II going on as surely
AZ though the administration at Wash
ington, and for that matter the admin
istratIons In the 48 state capitals. the
thousands Of city halls, and the thou
sands Of counties throughout the land,
were all committed to the Huey Long
share the wealth plan.
The middle class home owner who
has I mortgage, recently placed or re-
newed, Is saving 4 little on interest.
The government has been fairly sue
ceSsful In reducing interest rates. But
he Ii getting per cent or less, instead
Of 4 per cent, on his savings bank
account, and the dividends that re-
duce his life Insurance premium or
buy additional insurance are smaller.
The insurance companies cannot OBJ
tain the return on their money that
they did before the slash In interest
rates.
Meanwhile Just as prosperity seems
to be returning, the prospects OF the
folks just above this level for bigger
income from dividends on their In
vested saylngs--or inherItances--is
jeopardlzed by prospects that the next
big step In taxes-not the one now In
contemplation for this year-wIll
probably take another chunk of cor
poratIon earnings. Most New Dealers
want the present is per cent slice the
government takes OF corporation net
earnings boosted to o5 per cent.
Labor Takes Stand
A suggestion that John L. Lewis,
president OF the United Mine Workers,
replace Vice President Garner as Pres
ident Rooseyelts running mate this
fall II OF course absurd but under the
suggestion Is one OF the most signifi-
cant developments In the history OF or
ganized labor In the United States.
The endorsement OF the Roosevelt ad-
mlnlstratlon, lock, stock and barrel,
by the United Mine Workers, and their
arraignment of the American Liberty
league as group OF labor oppressers,
Is far more significant than Is general
~ realized
For II Is not just the mine workers
1t is the new movement In organized
labor. When the attack on the Lib
erty league was made every man vot-
ing for 1t was thinking OF the Dn
Points and John Raskob In terms OF
General Motors. 1t Is those big In
dustrles, now unorgnnlzed, which open
such shining doors OF hope for highly
increased union dues. and power.
So that, as political observers view
the situation here, II II the New Deal
IN 1aInr that - ha ckinc m tho n onsA