Evening star., 1938-07-26

treasury leu out ####s$$
vas that a for
NAL opinion had " A""'e"'e'
been rendered by the Justice Depart
ment saying it would be constitu-
tlonal for the Federal Government to
begin taxing State employees and, by
inference, for the States to begin
taxing Federal employees. No sooner
had this information been disclosed
when another spokesman for the
Treasury Department hastened to
point out that no such proposals were
being planned for passage at the next
Congress.
Just what caused these reassurances
to be given was not explained, but it
does look as if the political aspects
Of the idea of taxing State employees
might possibly have been given some
consideration, especially by the politi-
cal managers for members OF Congress
up for reelection this year who are,
in various instances, dependent on the
help OF State political machines.
This business of taxing State en-
ployes is far from being a piece Of
routine. VINO are State employees or
city and county employees, for that
matter? They include not merely per-
sons working at the Statehouses or
county courthouses and the city halls,
but school teachers as we'll, to say
nothing of the vast army of minor
employees in the field for cities, coun-
ties and States.
Equivalent to Wage Cut.
Taxation by the Government has
never bothered the State. city and
county employees before, and they have
played ball with the local political
machines. which in turn have helped
the national political tickets. Now,
however, If tax is imposed on State
employees incomes, it will be equiva-
lent to cut in wages or salaries. It
becomes serious thing for State,
county and city employees who have
never before paid Federal tax, and
In most instances have been immune
from State taxation as well. Wages
for government employees Of all kinds
are the last, as a rule, to be moved
upward when costs of living begin to
soar. In the inflationary era which
has just begun prices naturally will
rise and If taxes cut down the incomes
Of Federal, State and city employees
they will face considerable hardship
If meeting living costs in large num-
Der of instances.
Perhaps many of these State, county
and city employees who have been an
integral part Of the Roosevelt political
machine will now develop a different
idea of the wisdom of the whole spend
ing program which has kept the
budget unbalanced for several years
and caused deficits to rise by the bill
lions to unprecedented heights. May
be- they will not be as enthusiastic
about re-electing to Congress the
spenders who have been showing no
signs of economizing, but who have
been exhibiting more and more fervor
for spending. Certainly there seems
Eventually no way to ward of the tax
burden that must be imposed on gov
ernment employees Of all kinds so long
as the administration refuses to allow
private business the opportunity to
to take care of these huge budgets
which the present administration has
introduced
Somebody About to Pay.
The popularity of Mr.. Roosevelt is
related in no small way to his ability
TO cause funds to flow all over the
country, especially to cities, counties
lnd States which have been granted
pig subsidies Somebody is about to
be made to pay for all this. The
Treasury tax experts, being non-politi-
pal persons, have proposed a plan
which will bring in considerable reve-
hue from State, county and city en-
ployes 1t has been believed hitherto
that constitutional amendment
would be needed and, of course, this
meant that the State, county and city
political machines, with their vast po-
iticol influence, would never let such
an amendment pass. Thirteen States
could block it.
But under the regime of the New
ments are thing Of the past. They
don't feel it is necessary to let the
people pass on fundamental questions
any more. Though the American con-
sttutional system has been trans
formed in the last five years, not a
single proposal to amend the Consti-
tuition has been allowed to pass either
house of Congress, even though the
Democrats have had more than two
thirds in the Senate and House.
The technique Of the New Tories,
Of course, is to avoid constitutional
amendments. The process is merely
TO have the Department of Justice say
what is or is not constitutional. With
the control which the New Tories hone