Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1939-09-14
Bruckafs Washington Digest
Treasury Official Discusses
Our Needs Regarding Taxation
Government Wants to Know What Business Has to Sa
About Present Levies; Where Are We Going to
Get the Revenue to Pay Our Debts.
BY WILLIAM BRUCKART
WNU Service, National Press Bldg, Washington D. q.

les recognizes what confrontS the
nation in the way of revenue needs.
None Of us have heard very much
from top flight officials lately as to
how this $45, 900, 600, 1000 debt is ever
going to be paid. The boys who
spent the money. and had good
time doing it, are Sinking to cover.
They don't want to face the facts.
Whatever their attitude may be,
however, taxes are going to come
higher, Scent dollar or no Scent
dollar, and Mr.. Hanes apparently
was willing To tell the country the
story Of taxes up to this time.
Leaders of the house of represen-
tatives in the last session Of con-
gress recognized the general situa-
ton. But they were only half-heart-
ed about 1t, as politicians always
are when taxation is before them.
New taxes don't encourage votes
anywhere. But the house leaders
put through resolution authorizing
the ways and means committee to
start a study of the general tax
problem. A subcommittee headed
by Representative Cooper Of Ten
nessee, was appointed to do the job.
And here Is where the treasury got
into the situation, because Mr..
Hanes suggested the treasury could
be of help in making the study.
Might Be Smart Politics
To Undertake Tax Revision
1t is much too early for any one
to hazard a guess as to what will
be done. Next year is year for
general elections, from the Presi-
dent on down the line. 1t is rather
unusual for a congress to undertake
tax revision Especially upwarO in
advance of campaign, but some
how I believe it might be pretty
smart politics to do so next year.
There is nothing to indicate that Mr..
Hanes had any politics in his mind;
indeed, think the contrary is true,
because Mr.. Hanes has been bust
ness man and it is unlikely that he
Is versed in politics. He told Of the
situation In rather simple and I'M
derstandable way, and when it is
summarized what he said was: We
have to have more tax receipts but
on an equitable basis. It will re-
main to be seen whether congress
sional leaders will have the CUTS to
place the taxes on sound basis.
One can look over present tax
laws and find so many instances
where tax burdens break the back
Of one line Of business and fail abso-
lutely to touch another. The dema-
gogues will tear their hair and moan
about taxing the poor, and proceed
to lay taxes that are hidden in a
hundred articles that wage workers
must have. And that is the menace
of the present tax situation: hidden
taxes. wonder how many political
leaders would be able to hold on to
their jobs If they would tell the truth
about the taxes they have con-
cealed.
The public administration clear
ing house, an institution designed to
aid state governments by dissent
nation Of information regarding the
various states, released a statement
a few days ago that was quite IL
Illuminating as to the steps being
taken in tax matters. 1t showed
that four additional states-Massa-
chusetts, New Hampshire, Rhode
Island and New York-had enacted
new taxes on cigarettes in 1899.
That makes total Of rs states now
using this source Of taxes. There
are eight cities that have special
taxes on cigarettes. in addition to
state levies.