The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1937-05-06

There are many reasons for the
belief that the Congressional clog
JAM" which has held up much i'm
portant legislation, is about to be
broken. Hearings on the Presidents
court plan have been completed. The
Chief Executives budget message
has clarified the situation with ref
erence to Federal expenditures. It is
clear that enlarged relief expendi-
lures and new projects cannot be
undertaken without new taxes. And
there SENS to be no sentiment in
Congress favorable to new taxes.
AS result, leaders are endeavor-
ing to cut appropriations and to hold
relief expenditures down to the bill
lion and half recommended by the
President. If possible, that amount
will even be reduced. Should these
moves be successful, excise taxes
scheduled to expire in June and
July will be reenacted, perhaps for
another year, and that will be the
extent of tax legislation during the
first session of the present Congress.
However, should pressure from
various Congressional blocs result in
new and larger expenditures than
are provided in the budget, it may
mean tax revision before Congress
adjourns. And tax revision during
the summer months in Washington
is a slow and difficult undertaking.
Everyone hopes that it can be avoid
ed.
In the final analysis, the course of
the Congress will be governed
largely by the desires of our people.
If they want new expenditures, they
must be prepared to foot the bills.
If they want reduced expenditures,
they should make their wishes
known. These statements cannot be
repeated too often. They are of ut
most Importance to our people.
Nevertheless, we have timely
warning that the day is fast ap-
preaching when our system of pro-
ducing revenue must be overhauled.
Loopholes must be closed and in
equities removed. Our tax bases
must be broadened. Expediency in
1evying taxes must give way to
equity. We should consider the eff
feet of certain forms of taxes on
business and, in turn, on labor and
on the farmer. Much of the present
conditions, and those we have gone
through, may be attributed to the
way in which we have pyramided
taxes, Federal, state and local, with
out regard for their effect.
Therefore, we may anticipate, that
tax revision in 1938-if necessity
does not force it earlier-will be ap-
preached on a sound basis. Such an
approach has been too long delayed,
although the need for it has been
recognized by the nations fiscal ex-
perts.
For example, late in 1882, sub
committee of the House Ways and
Means Committee studying Federal
and state taxation and Implications
therein, made a preliminary report.
Let me quote from the statement
made by the able chief of staff of
the Joint Congressional Committee
on Internal Revenue.
cat the completion of some
months of study of our taxation sys-
tenn as whole, it is our opinion
that very substantial improvements
can be made therein, through coop
Grafton between the Federal Gov
eminent and the states.The tax bur-
den is great and the public is fully
conscious of this burden in these
times of stress. A more equitable
distribution of the burden and it's
ultimate reduction through judi
cious curtailment in expenditures
would doubtless not only be well
coined by the public but would also
have a most beneficial effect on
business"
We should ask ourselves the fol-
lowing questions:
Which taxes are most adaptable
for the use of the Federal Govern
ment and which taxes are most
adaptable for the use of the state
governments?
What taxes may be properly i'm
posed, if any, by both state and
Federal Governments without seri-
GUS objection from the standpoint of
equity?
We must give our citizens fair
and just system of taxation, free
froom loopholes and inequities, and
we must also give our people full
measure of value for their tax dol
lars This will require the reduction
in expenditures now sought by the
PRECEDENT.
1t is now evident that ohr people
are becoming tax-conscious. This US
ually happens when citizens gener-
ally begin to axis whether they are
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