The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-06-26
NATIONAL LEGISLATIVE REVIEW

The European war continued in tn
\ drivers seat of the congressional au
tomobile during the past fortnight
Save with minor exceptions, congress,
is concerned with little except defense
and taxes to pay for it.
Tax Bill HR 1OO39
The Tax bill, HR 10039, was intro
duced in the house on June 10, and by
June Is both houses had held hear
ings, the bill had been passed in the
house, and the second day of debate
in the senate was in progress.
This bill, now labeled temporary,
proposes to raise approximately one
billion dollars each for the next five
years, although these has been much
talk of permanent tax revision in jan
uary of 1941. OF this billion, approx
mately one-third is to be raised from
income taxes, of which 252 million dol.
lars are individuals personal income
taxes. OF the balance, the outstand-
| ing items are: taxes on distilled spir-
| its rs million dollars, fermented malt
liquors 46 million dollars; and an ex-
else tax of 1l2 million dollars. Like
wise included in the items bearing
Increased excise taxes are; admis-
siens, tires, tubes, automobiles, auto
parts, radios, matches. lubricating oils
eopyeyanees, and playing cards.
The house proposal, increasing the |
tax on tobacco and tobacco products
has been entirely eliminated from the
senate version Of the bill.
No Excess Profits Tax
There are are no additional excess
profits taxes, abnormal profits taxes.
or other form of corporate tax de-
signed to reduce or limit gains of
or defense profiteers.
These may yet be proposed upon the
senate floor, but their passage is con,
sidered unlikely.
These taxes are expected 10 fmpinge
heavily upon the already burdened {
farmer who will pay these taxes as S
More serious, ia the possi-
BILE effect of these taxes upon national 6
David r. Craig, presi- I
lent of the American Retail Fedora I
ion was moved to remark: y
1.-THE effect of tax on consumption c
inder these conditions is much the L
same as If prizefighter were to give t
Up eating while training for a cham I
fight so that he could afford Ia
o employ better sparring partners to I
perfect his left hook" C
1t is likewise significant that com
small part of the new taxes !
o be imposed will be earmarked for
rational defense. They are being 4
aised under the guise of national de-
ense" but only part of them will :
re required to be so applied. In fact,
Morgenthau was compelled
o admit when questioned before the =
louse committee that had there been :
10 emergency defense or war situa- =
ion, in January the administration y
would have been forced to go before =
ongress to ask for the same funds v
hat they are now asking for as de- :
snse funds. y
agriculture and War Economy n
Measures to subvert the agricultural
rogram to a war economy have not
s yet been introduced. However, in u
behind the scenes" discussions, 1t is !"
nown that strict production and mar = =
citing controls are expected to be ex- "
,nded to all crops in addition to the ~
We basic crops to which these con-
oils now may or may not apply In m
mild way. m
Cartel u
Likewise in the process of organiza- ~
on is plan for Pan-American ~
lrtel or marketing agency to receive pa
Id dispose of all surplus production
any particular country In the Amer ,
an hemisphere, the idea being to
nduct all trade with European fasc- tai
countries through this cartel. This an
an has not yet been drawn in suf- pl;
GENTLY sharp focus so that its effect tul
ION our farm economy may be visual to
3D. ar,
ork Relief and Farm Security res
Like a BLACK sheep" among the 1913