The Western news. [volume] (Libby, Mont.) 1933-current, 1937-07-22

what part she drew out for spend
ing. On that part drawn out in divi-
dends she would have to pay in
come taxes, of course, but she
would escape the enormous sur
taxes that an income of half
million dollars rates. She could dis
tribute the taxes over the rest OF
her natural life, and the govern
ment would be lucky to get $500, 600
instead of the $500, 900 it gets with
Margaret Mitchell unincorporated.
How 1t Works
The point here is that there are a
great many people who have brief
periods of very high earning power,
sometimes coming toward the end
of lifetime, and sometimes very
early. 1t is just possible, for ex-
ample, that Shirley Temple will
never earn a dollar after she is ten
years old. Or nine for that matter.
Often comedian or more serious
actor will struggle in comparative
poverty for twenty years, as did
the late Frank Bacon, and then
have a wonderful three or four
years. Sometimes it is only one
year.
There are other forms of occu-
patton where the same thing works
out, with plenty of ups and downs,
mostly downs. But the only way to
prevent the government taking halt
or more Of the profits in good years,
although not helping out in bad
years, is to incorporate.
To hear the testimony of the gov
eminent experts before the house
committee, and to read the news
paper articles about their testimony,
the casual reader might assume
that the person thus Incorporating
actually lodged all taxes in that
particular direction. Let's look at
what the government actually does
to corporations!
In the first place, it takes fifteen
per cent of all net earnings. That
is fair sized tax in itself, more
than one dollar out of eight. In the
second place, the corporation pays
two additional taxes to the federal
government, on its capital stock
and on excess profits. In the third
place, when the corporation pays out
dividends, they become the income
of the person receiving them, and
are subject to all income taxes,
even including the normal tax, from
which previous to the last March
returns they were exempt.
May Be Long Session
Only a surprise move by President
Roosevelt, which may come but is
not expected, can prevent the pres
ent session of congress running into
October
Actually congress can adjourn
within two weeks Of any Tuesday
on which the President let's h {
leaders know that he is willing fol-
certain legislation to 60 over unit
next session. This legislation in,
cludes of course the Supreme court
enlargement measure.
The legislation which would have
to be put over until next session
also includes much of the govern
ment reorganization proposal made
by the President. Mr.. Roosevelt car
get part of this without any delay
whatever, notably the half dozer
additional secretaries he wants. Blu
certain phases of it would be Tough
to the death by senators and rep
resentatives, some of whom are il
entire sympathy with the Presiden
on most of his proposals.
But if Mr.. Roosevelt should TAKE
the advice given him by Vice Pres
ident John NJ Garner before tina
astute gentleman left for Texas, i
would amaze every one how quickl,
congress could clean up its odd
and ends, clear its calendars o
everything to which there is no rea
opposition, and scatter.
1t has been apparent to ever,
one with the slightest interest il
looking beneath the surface tina
congress has been stalling TO
months.
Time Not Wasted
But meanwhile the time Is no
being entirely wasted There ar,
reactions from the constituents 0
the congressman. They gradual,
find out enough about home sent
ment to determine whether the,
dare support or oppose certain
measures. They can appraise tn
value of trades they contemplat
making.
This year, however, this watchfu
waiting process has come prett,
near to breaking all records, large
ly because of the two major piece
of legislation. One of them, the ST.
preme court proposal, is majo
issue. The other, government re
organization, involves personal POI
itics.
And while they have hung back o
this, with the senate adjourning TO
British week-ends, and meeting onl
few hours--sometimes minutes
. when it does actually convene, tn
/ LII L. l.