Imperial Valley press., 1938-01-19

ties outstanding today. Naturally,
these cannot be taxed. but income
from new public bond issues should
be assesslble. Besides forcing mon
ey into business channels, eliminat-
ing tax-eXenptS should also tap a
steadily increasing source of new
revenue for the Government. On
the other hand it would make
public financing more difficult and
more costly, and prices of public
bonds more unstable.
5. TAX GOVERNMENT EN-
PLOYEES: Among the unfair an
giles of the tax muddle is the eX-
emption of government employees
from the income tax. During the
depression. the average public Of
ficial had his pay cut only 10 per
cent. while the average private
citizens salary dropped as much
as so per cent! Stability of income
is exemption enough for our vast
army of public office-holders. BY
taxing them. not only would the
treasury pick up a good slice OF
another group-and one very much
in need of it-more conscious OF
public expense.
6. REMOVE THE UNDISTRI-
BUTED PROFITS TAX: OF all
the legislation recently written, the
Undistributed Profits Tax is prob
ably the worst. 1t is ill-advised,
short sighted. and contrary to our
ideals of thrift. 1t threatens the
stability of all industry. Although
it would be a temporarily defla-
tionary step. this tax should be
wiped off the statutes.
:. SET ASIDE SOCIAL SECUR-
ITY TAX FUNDS: Contributions
TO Social Security are being tossed !
into the federal kitty along with
all other revenues. In return, the |
Old Age Reserve Fund is being |
given an lou by the Treasury. /
The levy, therefore. is just an eX-
else tax on all employers and an |
income tax on every employe. In |
my opinion, the present handing |
of these funds IS just short OF /
public embezzlement II workers
are TO receive their old-age PEN
sions in sound dollars, these funds
must be definitely earmarked and
invested in productive enterprises
which means in other securities
than government bonds
8. CLAMP DOWN ON SPECIAL
LOCAL TAXES: The sharp growth
in state and city trade barriers is
dangerous tendency. 1t means
not only discriminatory double
assessments, but also the hinder
ing of the normal flow of national
commerce. Today there is grow
ing feeling among states that they
ulace imposts on goods imported
from another state. In effect, state
tariffs are being erected. Chain
taxes, ports OF entry, special truck
licenses, are encouraging the
growth of evil, backward section
alism. This must be stopped.
9. LOWER REAL ESTATE TAX
ES: The backbone of national pros
perity is the building industry. Yet,
real estate bears the burden OF 10 !
per cent of our local taxes. NUM-
cipal tax rates are rising all over
the nation. Assessed valuations are
almost universally too high. In
spite of vast sums poured into
local Golfers by Washington in
the last five years, few communi-
ties have mads economies or taken
up slack Real estate levies and |
high construction costs are chok-
ing building. Municipal expenses
must be cut so that both valua-
tions and tax rates can be slashed.
10. CUT PUBLIC SPENDING:
Most important of all, we need
a courageous abou.-face in public
fiscal policies Current false-no-
tions that the government" has
an unlimited reservoir of cash at
it's disposal must be banished. Re-
member that "A dollar saved is
a dollar earned" Economy NOW
is vital TO our future. Public in
come must be boosted and public |
outgo must be scuttled until all |
budgets are balanced. Unless public |
spending is reduced. / do not see
how we can avoid ultimate infla-
ton.
Readers will note that have
recommended only three tax in
creases. The problem OF govern
ment agencies today, however, is
how to get more income-not less
believe that the above changes
will so stimulate business in the
next few years, however, that the
national income will be greater
and the resultant tax returns larg-
er. Nevertheless, these proposals
are simply necessary patchwork
on a ragged and badly planned
system. Our real need is TO throw
our present methods into the ash
can and build anew.
Among the bad features of our
present tax set-up is the high cost
of collection. Some corporations |
pay taxes TO as many as 1000 |
separate public agencies each year
Enormous accounting staffs are |
necessary TO handle tax reports;
tax advising has become a major |
business. All this should be cut |
out. After giving the subject much
thought, I have come to the con-
clusion that a general federal sales
tax is the inevitable solution. Ir
my opinion, this. plus a limited |