The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1941-05-10


finance commit
tee gave it as his opinion, at the
chambers recent convention in
Washington, that the treasury de-
oartments pending taxation pro-
gram If adopted by congress, will
"liquidate the American middle
class" BY the middle class, he
said he meant all families on In
comes Of from $1,000 to $4,000.
Being myself a middle classer "a
deal nearer the $4,000 than to the
$4,000 rating), I don't like the
Idea Of being liquidated.
These, national trade and indus
trial organizations, such as the
u. S. Commerce Chamber and the
American Manufacturers associa-
ton, have been considerably criti-
cized in the past, as plutocratic
and monopolistic. but they're de-
veloping now quite democratically,
evidently in a realization Of the
fact that 1t won't be to their own
plutocratic and monopolistic ad-
vantage (supposing 'em TO be sol
to have the great middle class,
from which they've had the bulk Of
their PROFITS, wiped Off the map.
Financier Alvord's calculation is
that our middle class can stand a
taxation rate so computed as to
meet, currently, 80 per cent Of our
emergency expenditures, leaving
The other 20 per cent as a debt,
piled up against posterity But
Chairman Mariner s. Eccles of
he Federal Reserve Board, who
has had a lot to do with treasury
seckonings,- wants to meet two
thirds Of our expenditures current
y, leaving only one-third as an in
creased national debt.
Imitation Likely =.
On that basis, predicts Financier
lvord, goodby to our middle class.
Is tax payments will clean it out.
But, reasons Reserve Boardsman
Eccles. IL our debt mounts as FL
nancier Alvord suggests, imitation
will follow. That is, prices will
skyhoot. The middle class living
costs will go up out Of sight. Other
classes prices will fly upward, too.
However, the industrial workers,
perhaps with some difficulty, will
get wage increases, mors or less
balancing their budgets. But the
middle classers, on fixed incomes,
will be In the soup.
It's an argument between econ
omists. To a middle class by
stander. like me, it sounds as II
we're stuck either way.
The income tax, as I've had oc-
casion to remark hitherto, obvi-
ously will soak us worst. We can
economic on purchases (Which is
just what government economists
like Leon Henderson want US to
do, thus somewhat offsetting eX-
cises and sales and nuisance levies
but there's no economizing on an
income impost.
With this idea in mind Repre-
sentative Harry Sauthoff Of Wis
consin and Charles S. Dewey OF
Illinois have suggested kind Of
revenue stamp that can be bought
weekly or monthly and saved up to
turn in, in full payment when the
evil day for footing the bill ar
rives. Oh yes, an income taxpay-
er can ante his coming March is
total into a special account or into
a home savings bank, day by day
or week by week or month by
month, as he goes along. Only
precious few do it. A good many
Of EN- might have the foresight to
buy a regular weekly or monthly
revenue stamp Then they wouldn't
be regularly and so severely jolted
once annually - or quarterly, II
they pay cash in instruments.
Treasury Secretary Morgenthau
tentatively thinks it's fairly good
scheme and is studying it.
Also there's a proposed govern
mental checkoff-the employer to
hold out Uncle Sans share from
each wage envelope he hands over
TO an employe.
Inheritance Tax
And the inhcrtauce TAX. Sup
pose a smallish industriaiist dies