Evening star., 1940-05-27

NEts%3 AB?A . -
home the neces-
'' '" ""''' sity for new
taxes.
We cannot 90 on forever borrow
ing, borrowing. The gross public
debt Is now $42, ,786, SOC, 900. It has in
creased more than two and a half
billions in the last year. The deficit
for the II elapsed months of the
current fiscal year is over $4,000, ,000,.
600.
Now it is all to the good that Con-
gress and the President should be
doing first things first-getting the
preparedness program started with
out time consuming discussion Of the
ways Of financing it.. AS the Presi-
dent has said, when your house Is
burning you concentrate on putting
out the fire. But the preparedness
bill has got to be pair, and the sooner
we face squarely up to the problem
OF paying it the better. 1t can only
be met out of taxes. Either we pay
these taxes now or we weakly pass
them on to be paid later-and paid
at a heavier rate because of the
piled-up interest on our borrowing.
We have done enough-far too
much-of passing on the costs Of
Government to posterity.
Broader Tax Base.
We ought to have begun earlier
to get larger proportion of these
costs out of current taxes. For one
thing, as Senator La Toilette has
long been urging, we oug ght to have
"broadened the base" of the income
tax structure by lowering the exemp.
tions.
Whatever reasonable excuse may
have existed for delay in revising
our revenue law is now gone. En-
tlrely apart from the question of
now much longer we can 20 on
borrowing without destroying the
national credit is the question Of
how much longer we can 20 on
coddling ourselves, by putting of the
payment of our debts, without de-
stroying the national character.
The plain duty rests on Congress
TO enact a tax measure that will
pay In whole or at least in sub.
stantial part the cost of the emer.
gency defense program.
Strong Expressions.
1t is gratifying to note that In
the House discussion of prepared
ness last week there were several
strong expressions to this effect.
Some Of these may have been in.
spired partly by desire to embar.
rass the majority. That doesn't
matter. The conclusion as to taxes
Is sound.
Said Representative Rutherford,
Republican, of Pennsylvania: "The
administration should bring out a
special tax bill for the purpose of
raising substantial part of this
expense. and 1t could do it If it
would. But know that it will not
be done, as this is election year."
Representative Treadway, Repub.
lican, of Massachusetts,: I'VE should
share in paying for this national
defense by a new tax bill at this
session of Congress. There
are limits beyond which we cannot
go as regards taxes, but we should
completely exhaust the tax field be.
fore borrowing further. Since the
money is to be used for present-
day defense, it should be raised by
present-day taxes. ." We should
not pass on the whole burden to
future generations"
Wants Action This Session.
Representative Johns, Republican,
Of wisconsin: Let us vote money
for national defense, and before this
Congress adjourns enact legislation
that will bring in sufficient funds
to take care Of the amount appro-
priated. I am ready to pay my
share. I am sure all loyal American
citizens feel the same way about
it,"
Representative Hoffman, Repub-
lican, of Michigan: Taxes some-
time there must be. Let us meet
our duty here and now and not
conf1ne our activities to the making
Of patriotic speeches, the appropri-
ating Of billions Of dollars, to be
repaid with interest by future gen.
erations."
1t was not only Republicans who
spoke in this vein. Representative
Ferguson, Democrat, of Oklahoma
declared 1t was 'the responsibility
Of Congress to pass a tax bill to
finance our preparedness program"
and Representative Boehne, Demo-
crat, Of Indiana said: "The debt
limitation must soon be raised, but
under no condition should that be
done without the imposition of ad-
ditional taxes. - Whatever may be
the method employed, I am pri-
marily interested in making a start
now, q study that will be trans
lated into immediate action. The
House of Representatives has the
sole right to originate bills for rails
ing revenue and there is no valid
excuse for us to shirk our RESPONSE
bilities In that direction now"
Heartening Signs.
These are heartening signs that
the issue will be faced. It Is wholly
unlikely, however, that q tax bill
will be passed at this session. The
leaders Of Congress and the rank
and file. In the main, are eager to
get home and into the campaign.
That desire is understandable and
not, in our political system, to be
condemned. It takes time, more
over, to write tax bill. Congress
will not be derelict If it defers final
action until the next session.
| What the country has right to
expect is thorough study Of the tax
question by the appropriate COM
mittees Of Congress during the al
journment, and prompt passage of
a revenue bill in January. To q
great extent, certainly, this bill
should levy on incomes, and 1t
should apply to incomes being
earned in 1910. 1t should bring
new taxpayers into the fold and IL
should impose rates. up and down
4 the line sufficient tn nav st 1eosA