Evening star., 1937-06-09

aries OF Federal
officials and he said he thought Fed
eral employees ought to pay such taxes,
but that because Of the precedents OF
constitutional law they didn't pay
such taxes.
Likewise, the President pointed out
that he didn't believe in taX-eXempt
securities, but here, too, there would
have to be a constitutional change in
order to get rid of the exemptions.
What the President probably had in
mind was that States and cities could
not be compelled except by constitu-
tional amendment to stop issuing Sc
curities exempt from Federal taxa
ton, but, of course. it doesn't require
any constitutional amendment to
cause federally issued securities here
after to eliminate the tax exemption
feature.
What the President contends, OF
course, is that as long as there is no
constitutional amendment forblddlng
the States to issue taX-eXempt Secur1-
ties, the Federal Government feels
compelled to avail itself of tax ex-
emption as a comparative inducement
In the sale Of its own bonds.
Affirms Morgan's Stand.
In other words, Mr.. Roosevelt az
frmed the principle that nobody Is
compelled to pay taxes that are not
set forth in the laws of the land.
This is the way J. P. Morgan ex-
pressed it in a newspaper interview:
"Anybody's justified in doing any
thing as long as the law doesn't say
It's wrong"
Now If BY chance this is an erroneous
interpretation Of the Presidents view,
either as it relates to the payment Of
taxes on income from taX-exempt Sc
curities held by Government officials
or as 1t relates to the payment Of
taxes to their home States by Federal
officials on their salaries. then the
question really arises from moral
viewpoint:
Should a Federal official, in view of
the Presidents pronouncement that
it is morally wrong to practice tax
dNOlQdllGS, pay bdhCo dllS INV, SNSAA
though he knows there's loophole in
constitutional law?
Every Federal official and every per-
son who holds tax-exempt securities
must answer the query for himself.
It 50 happens that there is in the
Treasury Department certain ac-
count known as "the conscience
Y~tN
thousands OF dollars by persons who
think they really owe the Government
something they previously didn't pay.
Example of Hypocrisy.
II President Roosevelt himself feels
that Federal officials should pay taxes
to their State governments, even
though they are protected by loop
hole in constitutional law from the
legal necessity Of doing so, he can
set an example by offering to pay
to the State OF New York tax on
his Federal salary. or he can pay into
the conscience fund" Of the Treas
ury taxes on any tax-free bonds that
happen to be part OF the estate
from which he derives an income.
There is, however, little likelihood
that any such move will be sponsored
by the administration because the
truth is that almost everybody inside
the New Deal believes in tax avoid
ance just as much as does j. P. Nor
gan, and the whole episode is just
another example of the hypocrisy
which is to be found in the constantly
maintained atmosphere Of politics in
the National Capital. Nearly every
thing hereabouts is considered from
the angle Of politics. Government-by-
headline is the rule rather than the
exception, and explains many Of the
presidential utterances that seek the
front pages. Thus far Mr.. Roosevelt
has proved himself an expert in win
ming headlines, especially in the in
terviews and messages intensifying
class warfare precipitated by the
use of the taxing power to redistribute
wealth, policy originally sponsored
by the late Senator Huey Long OF
Louisiana.