Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1937-07-22
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NATIONAL CAPITALA = /
BY Carter Field 1TZ
FAMOUS WASHINGTON CORRESPONDENT -

| lion dollars-the normal levy on cor
poration earnings. The rest could
have remained in the surplus, save
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 a
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 5000, 1000
instead of the 100000 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 a comedian or more serious
actor will struggle in comparative
poverty for twenty years, as did
the late Frank Bacon, and then
have 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 half
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 a 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 it's 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 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 lets h
leaders know that he is willing for
certain legislation to go over until
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 can
get part of this without any delay
whatever, notably the half dozen
additional secretaries he wants. But
certain phases of it would be fought
to the death by senators and rep
resentatives, some of whom are in
entire sympathy with the President
on most of his proposals.
But if Mr.. Roosevelt should take
the advice given him by Vice Pres
ident John N Garner before that
astute gentleman left for Texas, it
would amaze every one how quickly
congress could clean up it's odds
and ends, clear it's calendars of
everything to which there is no real
opposition, and scatter.
1t has been apparent to every
one with the slightest interest in
looking beneath the surface that
congress has been stalling for
months.
Time Not Wasted
But meanwhile the time is not
being entirely wasted. There are
reactions from the constituents of
the congressman. They gradually
find out enough about home senti-
ment to determine whether they
dare support or oppose certain
measures. They can appraise the
value of trades they contemplate
making.
This year, however, this watchful
waiting process has come pretty
near to breaking all records, large
ly because of the two major pieces
of legislation. One of them, the Su-
preme court proposal, is a major
issue. The other, government re-
organization, involves personal pol
itics.
And while they have hung back on
this, with the senate adjourning for
British week-ends, and meeting only
a few hours-sometimes minutes