Evening star., 1938-04-10

continues, I'VE would have as complete a
totalitaran state in many respects as
they have in Germany and Italy. 1t Is
astounding that we have reached a point
in constitutional thought when such a bill
would even be proposed.
yet, those who would drag us into all
foreign controversies are the friends of Just
such measures Those who talk so
gllbly about our duty to crush Nazi-ism in
Europe, if they should have their way,
would plant the brutal thing in the very
heart of the American republic"
Alternatives Available.
Now, while the May bill currently is in a
status closer to enactment than others of
the wartime legislative plans the avail
ability of several others makes further
speculation in order
For instance, Senator Connally, Demo-
crat, of Texas, has what the May bill lacks,
namely. wartime tax structure Chairman
OF subcommittee of the Senate Finance
Committee named to draft legislation to
take the profit out Of war, the Senator has
presented measure which could easily be
lntegrated with the existing Federal tax
structure
Under the Connally bill. upon entrance
OF the United States into a war increased
tax rates and reduced exemptions for in
olVlduals would automatically become ef-
1ectlve. Personal exemptions would be
lowered to $500 and 81 800 for single and
married persons, respectively, with a nor
mai rate OF 10 per cent and surtax be-
ginning at per cent of the first 81, 900 of
taxable income and reaching 80 per cent,
II you are married, and making about
$4,000 yearly, your income tax under this
schedule would be approximately 500 in
stead OF about 500 as at present.
Corporations that have fought 50 bitterly
against the undistributed profits tax theory
would be forced to take it in large doses
under the Connally bill with the tax be-
ginning at 80 per cent and rising RAPIDLY
10 n per cent if as much as % per cent of
net income is undistributed.
Heavier Tax Proposed
But If the Connally tax plan sounds
tough, consider what you would pay under
the schedule included in the legislation
sponsored by Senator Nye, Republican, of
North Dakota, and chairman of the Senate
Munitions Committee.
The North Dakotan sets exemptions at
$500 and $1,000 with normal tax of 6
per cent and a steeply-graduated slrtax
schedule, Where the top combined rate
under the Connally schedule would be ao
per cent on net income above $4,000, the
Nye plan would impose SO per cent pen
atty on that part of net income above
$4,000. Corporation taxes would be
graduated up to point of taking 100 per
cent OF net income in excess of 6 per cent
OF the adjusted declared value of capital
stock at the close of the preceding income
tax payable year
similar bill is on hand in the House,
sponsored by Representative Maverick,
Democrat Of Texas, an unrelenting foe of
the taxless May bill which he terms "a fake
and fraud in its proposed surrender of
constitutional rights to the pleasure of
single individual and its failure to provide
directly for a wartime profits tax.
In place of a wide grant OF discretionary
power to the President, the Nye-Maverick
bill provides for wartime executive organ
ization composed of an advisory defense
council. war resources administration,
war labor administration, public re-
lations administration, selectve service
administration, price control commits
sion and war finance control commits
sion.
Service Heads Have Plans.
No speculation of what would happen
to you in wartime is complete without Civ
ing serious thought to the intentions of
the War and Navy Departments Quietly
powerful during peace times the military
lobby becomes increasingly irresistible as
war moves closer
Construction of ships, aircraft and other
mechanical needs is task requiring time
but quickening tempo in this direction
is already plainly noticeable. Less obvious
at present but sure to be felt more directly
when the worlds statesmen and militarists
succeed in getting us into war are the
plans for mobilization of men and industry
which are being carefully preserved in the
files of the two departments
For instance, selective service commit
tee has already prepared the master draft
Of conscription law and regulations to
put it into effect. A nucleus of an admin
istrative organization already is trained for
the task and cooperative arrangements
with the States have been outlined.
High Pressure Statesmen.
Aware that it would take nearly two
months at minimum to force the eligible
citizenry into military uniforms, plans for
interim voluntary recruiting have been
drawn Committees of local citizens, made
up largely of representatives of veterans
organizations, would be vested with the
principal duty Of persuading us all we
should get In there and fight.
Procurement planning also has been
given due thought by the military officials
and the production capacity of some 10000
industrial plants is reported to be carefully
catalogued in the War Department files.
Carrying this project even farther, the De-
partment also Is reported to have allocated
the use of 10000 Of these plants to the va
r1ous supply branches Of the military sys-
TEN and to have contracts already drawn
for the initial work to be done In each one.