Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1938-03-31
National Topics Interpreted
by William Bruckart

Washington.-It is often the trick
OF political spokesman to let their
real feelings become known by a
statement t h q t
Iox0tIon makes no definite
Problem reference to the
broader policies in
which they are interested. Such a
statement was that made lately by
Sen. Pat Harrison, Mississippi DEM
ocrat, with reference to what the
senate will do on the pending tax
bill. At least, nearly all of the OBJ
servers here who know the lovable
Pat Harrison were quite convinced
that, when ne said the senate would
grant business relief from unfair
taxes, he actually was proclaiming
congressional independence of Pres
ident Roosevelt.
This question of taxation is one
with which the New Dealers are
gravely concerned; they are just
as much concerned as is business
and the country as a whole. But
they are concerned for a different
reason. Sane minds throughout the
country long ago began to beg con-
gress and the administration to
make changes in the tax laws to
permit business to go forward with
employment and production. New
Dealers attacked anyone who said
that as an economic royalist" or
tory or some other one of the va
rious things that the New Dealers
profess to hate. After so long a
time, however, the New Dealers
conceded some changes were neces-
sary-and then began the greatest
face-saving maneuvers yet to be
tried by the wishful thinkers.
When word went to the house
ways and means committee that it
could make notifications in the two
pet New Deal tax laws, the ageing
Chairman Doughton, of that COM
mittee, followed instructions. OF
course, there were seventeen Demo-
Gratis and seven Republicans on the
committee and that enabled the
New Deal to carry out its plans for
modification" of tax laws-and to
save faces. Regular Democrats and
Republicans in the committee men,
bership still were in the minority in
the house of representatives, and
the New Dealers had their way. The
tax bill debate in the house never
theless told of more slaps at the
administration that lay ahead.
At this point in the developments,
Senator Harrison enters upon the
stage. He is chairman of the sem
ate committee on finance. His state
ment, therefore, that the 1898 tax
bill is going to give some basis upon
which business can break even, at
least, can be taken as indicative of
the final form Of that law when it
emerges from congress. The house,
under the lash Of White House lob
byists, managed to hold part of the
ways and means committee draft
m its original shape while losing
other parts of it. Thus, when the
senate has acted and the bill is sent
to conference committees for ad-
1uStment OF the differences, it is
rather plain to see how Democrats
and Republicans are certain to over
ride New Deal face-saving.
/ have written much in these col
umns about present tax policies
., heretofore. There
n0TTtson is little need to re-
Speaks Out peat the facts
which continue to
be important factors in the develop
ment Of the Roosevelt depression.
The assinine tax on undistributed
earnings, fathered by the radical
Prof. Herman Oliphant Of the Treas
ury staff, has not allowed any cor
poration to build up a reserve. It
took all Of the earnings Of last year,
q period in which some corporations
did make money in q limited way.
Now that the depression In on US
again, corporations obviously are
Oeared stiR. Wage cuts are crop