Evening star., 1937-04-23
Bad News for Taxpayers.

1t is not surprising if the Presidents
references in his relief message to i'm
mediate need for a careful survey of the
tax structure" and the fact that Con-
gress will be asked to remedy defects
in the present tax laws" carry premo-
milton Of impending disaster to the
taxpayer. Experience has revealed the
Presidents prediction for euphonous
rhetoric in suggesting higher taxes He
has fondness for such expressions as
administrative improvement" and the
need to simplify and clarity" or "re-
form" our tax laws. But the taxpayer
Is beginning to catch on.
The administration has shown an
amazing dexterity in leaping at and then
leaping away from the subject of new
taxes. The taxpayer has had some diff
Guilty in keeping up with the game. He
was caught off base when the President
delivered his entirely unexpected soak
the rich" tax program to stunned
Congress on June 20, 1885, and has
been a little unsteady ever since
Congress buckled gamely to that first
tax task. A week after receipt of the mes
sage the nuisance taxes, about to expire
automatically, were extended for two
more years. And Congress set to work
to meet the Presidents demands to
simplify and clarity" the revenue laws,
principally by soaking the wealthy in
the higher income tax brackets. That
job was finished August 81, when Con-
gress sent to the President his new
revenue act hiking surtaxes on incomes,
boosting various corporation taxes,
estate and gift taxes, and adding quar-
ter OF billion dollars to the tax burden
Just little over month later the
President discussed the 1897 budget,
then in preparation, and gave out the
cheering news that "it is clear to me
that the Federal Government under pro-
visions of the present tax schedules will
not need new taxes or increased rates
in existing taxes to meet the expense OF
its annual operation and to reduce its
public debt
And three months later, January 1,
1886, in his message to the new session
of Congress, the President again voiced
the optimistic thought that based on
existing laws it is my belief that new
taxes, over and above the present
taxes" are neither necessary nor ad-
visable.
But on March the President sent
another message to Congress suggesting
certain methods of stopping leaks in
present surtaxes' and proposing tax
reform by way of new tax on undis-
tributed corporation surpluses Congress
responded with the corporation taxes,
new taxes on fish and vegetable oils a
variety of other taxes which promised
to give the President $500, 100000 in new
revenue, partially to offset losses from
invalidation of processing taxes and to
meet the cost of the bonus. The bill
was signed June % and less than two
months later, in August, the President,
Secretary Morgenthau, Senator Harri-
son, Representative Doughton and others
met in happy conference at the White
House.
Business was improving, everybody
agreed. There was no need for new
taxes. In fact, there was prospect Of
slight decrease in taxes Secretary
Morgenthau, fairly glorying in the
prospect, said that we could now CON
slider revision of the tax laws with the
purpose Of removing any inequities or
unnecessary administrative difficulties"
and that thorough examination of
the tax laws" was contemplated and
recommended
At Worcester, Mass, during the cam
paign, the President told a lot OF
prospective voters that new or In
creased taxes are not needed to enable
us to balance the Federal budget ard
to begin very soon rigid reduction in
the public debt" And in December,
Senator Harrison, arriving in Washing
ton for the new session of Congress, said
that no new taxes were necessary but that
the tax laws were being studied" with
a view to eliminating miscellaneous
or nuisance taxes where the cost OF
collection was disproportionate to the
yield.
Well, no taxes have been eliminated
But sit has become apparent" the
President said on Tuesday, "that there
is an immediate need for a careful
survey of the present tax structure. ,
Our tax structure, which has been
clarified, simplifled, reformed, plugged
equalized, revised, studied and i'm
| proved, is now in for careful survey
And that means bad news for the tax.
payers.