The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1941-12-10

dough they rake In. and taxes can't
be collected on what's ceased to
exist.
Chairman Walter r. George Of
the senate's finance committee, an
exceptionally good diagnostician Of
taxation complaints, says we're
close to the limit now-the more
Uncle Sam calls for the less he'll
get
He can't economize, though. He
might do a little pinching on his
non-emergency spending. though
he doesn't seem much inclined to
do even that. Defensive and lease
lending costs, however. are run
ming him almost uncontrollably
into the red. regardless Of every
thing else.
Naturally this means. not mere
II Q rising. but . skyhooting ma
tionai debt. Senator George thinks
II may hit $50. 900, 600, 00o-about
~ far ~ the remotest planet u
from our solar system.
A whole world debt of that size
would have alarmed economists q
few years ago, but this one's going
to be the u. 8. As alone.
It's true, collectively speaking,
well owe 1t practically exclusively
to ourselves, but that won't be any
particular consolation to the aver
age individual. Some Of It's owing
to me already. I've got few little
bits Of government bonds. But
what'il happen to en-? Why. they
win be copied on me to pay my
income tax next March. That's
what bought 'em for. / was
afraid wouldn't have the strength
Of mind to save up In advance and
would get chucked In jail a. an
svader, like Al Capone.
No shrlnlxage likely
When a governments expenses
increase. they almost never shrink
subsequently. The government
probably honestly intends to re-
duce 'em when the emersencys
over, but It would be virtually un-
precedented for q government to
do It, when the time comes.
Alright, say we end the present
emergency with expenses around
the figurs that Senator George
considers nearly possibility's tops,
plus q $3.50. 600. 000. 900 debt to pay
interest on.
How are we going to pay inter-
est and principal, too? Maybe we
can take care Of the interest, but
principal? By hiking taxation suf-
hciently to lquidate It? All. but II
we do that we run into that infer
nal Flaw Of diminishing returns"
Instead Of having enough more in
the treasury to do the business,
it'll have less, under the provisions
Of that blamed law.
Senator George believes we can
get away with 1t In instruments, q
generation at a time--our genera
ton, our children's generation and
our grandchildren's. It'll take ap-
proximately 100 years. according
to this reckoning. A pleasant GEN.
tury-long prospect, what?
And Is II q cinch that the thing
can be done, even In three install
ments, without hitting that darned
law Of diminishing returns?
Our grandchildren's generation
will learn. Whatll we care then?
Wen have our worries over our
own instruments, though. Even
ours may diminish returns" II
so, the diminution perhaps win
serve as a taxation ceiling. The
trouble with that Is that it'll delay
payment OF our debts principal,
whichn hurt our governments
credit--in other words, more or
less devaluing our money, another
name for the imitation we're Do
much afraid Of. Price Fixer Leon
Henderson's preventive of imitation
Is higher taxation, to keep the pub
lie from having so much cash to
spend. Higher taxation. hey! How
about the law Of diminishing re-
turns7
Death Risks Greater
A spell Of hard times mightn't
be an unmixed evil, at that.
Urt.- T-.tls,.&~ - 10. T-~.~,..~