Imperial Valley press., 1938-01-19

continue at the rate we are s
NIT suicide by taxation. Govern
ment spending is eating up our
present assets. Taxes are hinder
ing us from building up new capi-
tai More than any other reform"
our taxing methods from Federal
down, need a complete and thor
ough overhauling during 1888
Our present system is just
big piece of patchwork It's only
basic policy is to conceal taxes
from the ultimate payer-the con-
sumer. It is short sighted, un-
equitable. unreasonable It penal
ICES initiative and thrift. 1t han
dicaps industrial growth. 1t him
ders the normal operation of busi-
ness. 1t retards new building II
encourages loose fiscal policies 1t
fosters sit-down strikes of capi-
tai 1t is heading the United States
straight toward bankruptcy and
initiation. There are at least ten
different steps that should be TAX
en- Immediately to relieve the cur
rent crisis:
/. BROADEN THE INCOME
TAX BASE: Five years ago the
income tax was the major source
of Federal Government internal
receipts. Despite the passing of
many new revenue laws, ii still
contributes 40 per cent. Yet in 1928
only 100000 filed income returns
and of these only 2.523,000 paid
tax. Hence, the burden of income
taxes is still hearsay among 95
per cent of the nations voters.
Broadening the tax base and cut
ting down on exemptions would
have two important results: (a) 1t
would make millions Of citizens
more directly concerned with pub
lie spending. (b) 1t would pro-
duce an additional revenue of per-
haps 100000 per year.
2. PARE DOWN HIGH INCOME
TAXES: The last bracket on the
income tax schedule takes rs per
cent OF an individuals earnings in
that bracket. No one claims that
a rich man needs a Sl,000,000 an
nual income to live; but he does
need much more than this to keep
his business up-to-date. He will
not borrow money He cannot sell
stock. Hence, in most cases his
only source of new capital is from
his own income. After paying
taxes. large employers do not have
enough money left to keep their
businesses running as they used
to run. or to employ as many peo-
pie as they formerly employed. The
taxes on high incomes should be
cut down. These same comments
apply TO estate and gift taxes.
Certainly, provisions for payment
OF inheritance tariffs must be al
tered.
5. REDUCE CAPITAL GAINS
ASSESSMENTS: Ii the Federal
Governments big source Of reve-
nue. is to be the income tax, then
incomes must be aided in every
conceiva bic way. Hence, my opposi-
ton to big capital gains tolls. Eng
land has a problem similar to ours.
But she bears down on the incomes
and leaves capital gains alone.
Her theory seems logical Encour-
age the individual to make in
VeStments. TO start novel enter
prises, TO open new mines, so he
will make more money; then he
can pay an income tax year-after-
year. Assessing capital gains heav-
lily is like killing the goose that
lays the golden eggs.
4. ELIMINATE TAX-EXEMPT
SECURITIES: Under present tax
schedules a wealthy mans capital
is shunted from business into tax
free securities such as overnment,
state. and municipal bonds. This
is bad policy. 1t makes it difficult
TO secure new capital for business
enterprises. There are about S56,-
000,0O0OO0 in non-taxable securi-