Montana labor news., 1938-03-24
THE TOWNSEND PLAN

I'LL IL LII
The purpose of this series of
articles is to bring a clearer under
standing of the aims and objects of
the Townsend Plan and its effect on
our economic problem, to show the
simplicity and workability of this
misunderstood plan. The first OBJ
lection to the plan is the amount of
the annuity, 5000 per month, and
the average person will say too
much" or if he accepts that he does
it with tongue in cheek until he is
thoroughly c%onversant with the
tire plan.
In building it is necessary to first
lay a good foundation and the foun-
dalton of these articles is the Town
send Plan and the General Welfare
Act of 1887, H. R. 4199, which is the
bill now in the hands of the Ways
and Means Committee, the salient
points of which are as follows, viz:
Section 3 (a)-'There is hereby
levied, in addition to all other taxes,
an excise, tax, or duty of 2 per
centum upon the gross dollar value
of each transaction done in the
United States, except transactions by
or through any government agency
or involving any security issued by
a governmental agency; also in addi-
ton to all other taxes, an excise, tax
or duty of 2 per centum upon the
gross market dollar value of all
transfers of money and/or property
by devise, bequest, II other tesla
mentary disposition or legal descent
and distribution of money and/or
property; and also in addition to all
other taxes, an excise, tax, or duty
of 2 per centum upon the gross
market dollar value of every gift of
money and/or property"
Section 4-'There is hereby ere
ated in the Treasury Department of
the United States a fund to be
known and administered as the gen
eral welfare fund. All revenue de-
| rived from the excuses, taxes, or du-
ties levied in and under this act shall
be deposited in said fund, and shall
be disbursed only for the payment
of the sums expressly authorized by
this act to be paid therefrom, and
for no other purpose"
Only United States citizens are
eligible;
Section 5 Delivery person II
the United States sixty years of age
and over, or who shall attain the
age of sixty years after the passage
of this act, who has been a full citi
zen of the United States for at leas
five years, shall be entitled to re
ceive, upon filing application anC
qualifying as hereinafter provided
an annuity payable monthly during
the life of the annuitant, in a sun
to be determined as hereinafter pro
vided in this act"
(d)-"The annuitant shall cove
nant and agree, in his sworn appli
cation for the annuity, to expend
and shall spend all of each month
annuity during the calendar montl
for which it is received by the an
nuitant, or within five days there
after, within the United States o
its territorial possessions, or en-
route between the states and sucl
territorial possessions, in and for tn
purchase of any services (excep
gambling) rendered, to his hes
knowledge and belief, by citizens o
the United States, and/or commodi
ties manufactured, to his best knowl
edge and belief, in the Unite
States. Provided, however, that tn
annuitant shall not directly or in
directly expend more than 10 pc
centum of any such monthly annuit
for gifts or contributions to an
person or persons and/or any pub
lie or private institution, association
or organization"
Continued to Page 81