The Western news. [volume] (Libby, Mont.) 1933-current, 1937-05-06

SEEN
HEARD
around the
NATIONAL
CAPITAL
By Carter Field y
By Carter Field .

necessity for. either more revenue
or Tess spending, senators and rep
resentatives, not to say administra-
ton officials, are not as stupid as
some critics seem to think.
There is a reason as big as q
house for what they are doing, and
it has nothing to do with the mental
processes that are supposed to in
duce an ostrich to bury its head in
the sand in the presence of danger.
The men who have the final say
on this know perfectly we'll that
the next revenue bill, if it is going
to provide anything like the amount
of money needed, must hit the
smaller incomes. AS predicted at
the time, the new revenue law now
On the books has made tax evasion
a fine art. Also. there is law
of diminishing returns, even in taxes
on wealth.
For example, very high income
tax on the upper brackets is re-
markedly effective in discouraging
gambling, even business gambling
1t has restricted gambling in stocks
and commodities far more probably
than all the securities and exchange
commission's restrictions, effective
as they have been.
Which may be a fine thing, but
that is not the point. The point is
that a man with substantial for
tune, while he still retains the ma
tural human desire to increase it,
looks at any new venture more
coldly than in the olden days. If
he loses, the government has moth
ing to say, but If he wins he has
to give up more than half his profits
to the Treasury. So he takes fewer
chances, plays more sure things, is
satisfied with a much smaller re-
turn on his money, and puts more
and more of his money In tax ex-
empt bonds. Then to balance the
danger that imitation would hurt him
In that direction, he is apt to buy
some land, not looking for immedi-
ate return, but just as a hedge
against the possibility of his dollars
being worth less.
Tax Returns Disappoint
All of which is part of the explana-
ton OF why, with business tremen-
dously better last year, and with
wonderful crop of dividends. the
income tax returns of March is
were SO disappointing.
The other part of the explana-
ton, congress and the administra-
ton realize, is that considerably
more OF the total crop OF dividends
goes to small income people than
had been thought. Treasury experts
knew this from previous figures,
but their comments on the tax plan
last year were ignored, for the most
part, though attention was called
to them while the bill was under
consideration.
So to get the money that the
Treasury must have, unless spend
ing is to be curtailed more drastical-
ly than any one familiar with the
political situation really expects,
tougher levies must be made on
the little incomes. Exemptions must
be reduced and rates on the little
fellows must be boosted.
But that is terrible politics and
every one knows it. Senator Robert
M. LaFollette of Wisconsin is one
of the few who have had the political
courage to advocate it.
Soft 1t can be postponed in one
way or another until after the 1888
election-or at least SO that the re-
turns will not have to be made UNI
til after that election--it might pre-
vent quite a few defeats of house
members and of the senators who
then come up for reelection. Actual
prospects are, however, that the
wolf just won't stay away from the
door as long as that.
Third Term Talk
There is more and more talk about
third term for Franklin D. Roose-
welt. More and more, the talk about
other Democrats, such as Governor
George III. Earle of Pennsylvania,
Paul v. McNutt of Indiana and Sec
rotary of Agriculture Henry A. Wal
lace is subsiding.
There is no real question In any
ones mind that popular prejudice
against third term is not of suffi-
cient Importance to interfere. If Mr..
Roosevelt decides not to run it will
not be because of any objection to
violating that old tradition. 1t will
be for some other reason or reasons.
II just so happens that he rather
enjoys breaking traditions.
Nor is there any doubt that the
President could easily be renominat-
ed and reelected, if the election
were this fall instead of in 1910.
There is not the slightest evidence
of any diminution of his popular
strength. Most senators are of the
opinion that if the Supreme court
enlargement plan we're merely a
device originating on Capitol hill,
and on which the President had said
publicly that he considered this a