Evening star., 1937-05-02

United States has become not only
more complicated but has called for
revision We haven't had q revision,
and I think the time is coming, not
this coming session of Congress. but
the following year, when all OF us can
get together and sit around q table
and work out better system Of taxa
ton, State, municipal and Federal
Late this Winter We are going to ask
you to come down and talk about that
subject around table"
Winter came, but the call to sit
| around the table did not
| There was, however, a second assur-
ance that based on existing laws, it
is my belief that no new taxes, over
visable or necessary" This comfort
/ ing thought was contained in Mr..
Roosevelt'S opening message to Con-
gress on January 4, 1886
| Within a few weeks the Supreme
| Court tossed the processing tax sys-
| tenn out of back window and the
! veterans lobby climaxed years of ef-
| fort by pushing through the bill for
! quick payment of the adjusted COM
| pensatlon certificates.
| Gone with the wind were the Presi-
dents comforting thoughts Of Janu-
ary 4 and in their stead came mes
sage on March 3 directing Congress
| to undertake the task Of raising $780,
100000 yearly in permanent" in
come and s5l7,0OO,0 900 in temporary"
! income, the latter task to be spread
over two or three years.
AS principal means of accomplish
ing the desired end, Mr.. Roosevelt
reverted to his theme of the Summer
before when he mentioned "unwieldy
and unnecessary corporate surpluses. "
His suggestion now was that "a
proper tax on corporate income Gn-
cludng dividends from other corpo-
rations), which is not distributed and
earned, would correct the serious two
fold inequality in our taxes on busi-
ness profits if accompanied by a re-
peal of the present corporate income
tax, the capital stock tax, the related
excess profits tax and the present
exemption of dividends from the nor
NAL tax on individual incomes.
Simplification of Procedure.
Such a revision of our corporate
taxes would effect great simplification
IN tax procedure, in corporate ac-
counting and in the understanding OF
| tho uhn1o cthiArt hyy{ M ~
the Nation. 1t would constitute dis
tinct progress in tax reform"
Three and one-half months later
on June %, the President signed a
bill estimated to yield $795 900, 600
yearly, the principal yield of $500 ,0O0,-
600 to come from new tax on un-
distributed corporation income as
suggested.
1t was about two months later
August l3. that taxes again broke
into the headlines via a White House
conference of Mr.. Roosevelt, Secre-
tary Of Treasury Morgenthau and
Chairmen Harrison and Doughton
So bright did financial prospects seem
at that time, less than three months
before election day, that the financial
leaders predicted quick budget bal
ancing and even limited at reduced
taxes when they left the White
House.
With continued recovery" Secre-
tary Morgenthau informed his chief
I'VE are steadily approaching = rev.
enue yield which will be entirely
adequate to cover the expenditures
of Government and to reduce the
public debt.
ANY change in the tax structure
should, therefore, not BE- In the di-
rection of increased taxes. But this
very situation makes it possible and
timely for US now to consider re-
vision of the tax LAWS with the pur-
pose Of removing any inequities OF
unnecessary administrative dif1cul-
ties that may be inherent in the Law
and abating or modifying taxes that
create unfairness to consumers or to
trade or have other disadvantages.
II suggest the advisability
Of undertaking soon . thorough ex-
animation OF the tax laws ."