The Sauk Centre herald., 1941-11-13
CAPITOL PIT.
.--Ne2UC
BY Representative Harold Knutson
Of Minnesota


JoSso AHs0Ay AoA IIOpOSdAB
The Secretary Of the Treasury
met informally with the Ways and
Means Committee one day last
week and outlined to that body his
plan for controlling initiation and
at the same time raising more re-
venue through increased taxes.
1t Is the Secretary's thought
that the less money the American
people have to spend the less the
danger Of initiation. He would
greatly increase personal income
and social security taxes.
The Committee rejected Mr..
Morgenthau's proposals for the
time being. We passed tax bill.
the most burdensome in the history
of the Republic, less than two
months ago and here the Admin
istration Is asking us to levy yet
heavier taxes before the last tax
law has gone into effect.
Secretary Morgenthau's propos-
ais, which 1t is estimated would
bring in At hundred million dol
lars annually in new taxes, were as
follows:
1. To impose a new Is per cent
income tax to be deducted from
pay envelopes.
2. To increase the existing pay
roll taxes for old age insurance to
per cent on both employer and
employee.
8. To impose a new per cent
payroll tax on employees for the
purpose of unemployment insur-
ance.
The proposed new Is per cent in
come tax would be imposed In
addition to the regular income tax,
and would apply to that portion of
the income in excess Of the personal
exemptions ($1,5OO for married per
sons, $3.50 for single person, plus
$400 for each dependent). The en-
ployer would he required to COM
pute each workers exemption on a
monthly basis, and deduct Is per
cent Of the employees wage in ex-
cess of that amount. The tax thus
deducted would be deductible from
net income in computing the re-
gular income tax.
Under the recently enacted tax
bill, the income tax rate was raised
to a minimum of 10 per cent a
per cent normal tax, plus 6 per
cent surtax). The effect of the
new proposal Of the Secretary of
the Treasury would be to raise the
initial rate Of tax to 25 per cent.
A Costly Program
Instead Of asking for new and
more burdensome taxes the Ad-
ministration should set itself to the
task Of cutting out needless spend
ing and waste In the defense and
non-defense programs. Many Of
the big defense projects have been
let on a cost plus basis which
means that the more dollars the
contractor can crowd into the cost
the greater his profit. Let me cite
an example: While out home last
week was told that a water boy
on one Of the local projects Is draw
ing $32 per week. I can remember
the time I was glad to take the
same kind Of Job for 81 a week.
There should be a happy medium.
True, that Is a small item but 1t
is indicative Of how the money is
being seuandered.
Then there is the strike situat-
ion. The President has declared
that we are in the midst of a nat
ional emergency vet he permits
strikes in defense production and
sees to 1t that these strikes are
settled by giving the strikers all
that they ask for which merelv
means pvramiding production costs
and greater national debt. The
President does not want to offend
labor, that is clear. Why not con-
cede to buck privates in the Army
who are getting 81 month the
right to strike. Certainly, they
are grossly underpaid and I cannot
for the life Of me see why q
soldier should not have just as
much right to strike as one who is
engaged in the production Of war
materials. both Of which are
essential to national defense.
Isn't 1t about time the Admin
istration stop playing politics and
get down to brass tacks? The