Evening star., 1939-01-02
Dr.. Townsend Returns
To Push Sales Tax
For Age Pensions
Huwuiiun Economist Aide
Put Same Idea Over
To Wipe Out Debt
By JOHN ], DAILY.

DR.. Francis E. Townsend, an old
family doctor turned philosopher,
came to Washington on the last
day of the old year to start the New
Year off with a streamlined cam
paign for national gross sales tax
that will put the old folk on easy
street about 1850.
Tomorrow DR.. Townsend and his
co-workers will open Offices in the
washington Building at Fifteenth
and New York avenue NV. and
| start bombardment of Congress.
The Offices will be in charge of O..
J. Bouma, with an added feature
in the person of Louis c. Silva, an
Hawaiian economist who hopes to
teach the next Congress just what
can be done with . gross sales tax.
DR.. Townsend, as he told the story
yesterday afternoon shortly after his
arrival, went to the Hawaiian Islands
last summer and had his eyes
opened. He saw there miracle come
to pass. and it was worked by no
black magic or mystification other
than the gross sales tax.
Debt Melted Away.
1t seems that Hawaii, with a pop
ulation of 100000 or so inhabitants,
had a debt of 81 100000. Through
the insistent demand of man
named Barthurica, who is now tax
commissioner of the islands, a mar
| ket privilege tax was put through
it's the same as gross sales tax
and the national debt disappeared
pronto!
Now if they do that in Hawaii,
DR.. Townsend figures the same prop
osltion can be put over in America.
So he has changed the course of his
Old Age Pension ship, trimmed the
sails somewhat, and intends to
steer for a clear port ahead where
he hopes to see the old folks enjoy
themselves.
Afetr this man Barthurica got
his legislation through the Hawaiian
Legislature everybody was at sea,
SO to speak; didn't know just what
to do with it. So they employed
Louis c. Silva, who comes from old
Portuguese stock. and he made it
work. That's why Dr. Townsend
brings Mr.. Silva to Washington.
AS DR.. Townsend expounds the
plan. the idea is very. very simple.
In Hawaii, they make everybody
who wants to sell anything-from
a spool of thread to an electric
refrigerator-take out a government
license. Then. the Government
gives each person who takes out a
license tax form with a list of
instructions. Then, every 80 days
the persons who sell goods must
make out their papers. return them
to the government and pay Il, per
cent gross sales tax.
It's as simple as that, but the plan
hadn't been in operation a year and
a half when Hawaii got out of the
red. So DR.. Townsend is anxious
to see the same plan put in force
here. If it goes over, as he hopes it
will with the aid OF his 1000 clubs
throughout the Nation, the good
doctor can envision an America
where the old folks rest at their
ease, do as they please. spend 5000 a
month and tell dull care to go jump
in the lake, or the river. or what
| ever may De the nearest body OF
water to their domicile.
Bill Is Streamlined.
Not to get too far away from the
original idea of the Townsend plan,
DR.. Townsend, its author, says that
soon as Congress convenes Repre-
sentative Joe Hendricks of Florida
will introduce the General Welfare
Act, which is the same bill that
went to Congress last session-H.
R. 4l99-but that, of course, is only
the beginning That has all the same
stuff that has been aired up and
| down the land since DR.. Townsend
originated his idea. back in 1888
The gross sales tax is the new.
streamlined form of the original
idea. And gross sales tax it shall
be. It would work somewhat like
this: Everybody who sells his serv-
ices, in whatever capacity, would
pay the Government per cent
and out of that vast sum of money
the old folks would be insured a
good living.
Call it depression or recession or
whatever you choose, DR.. Town.
send says he is mighty well fed up
with it and intends to get the Ma
ton out of the doldrums. The only
way out, he confesses, is to get
everybody working on the great hu-
manitarian basis of helping their
neighbors-and this can best be done
by the gross sales tax. 1t means
about the same distribution of
money each month that was spread
around in one fell swoop by the
soldiers bonus, of blessed memory.