Milford chronicle., 1941-06-13

. Americans VINO Tor many years
: have been talking about the bur
den Of taxation, are shortly to dis
cover that they 'ain't seen nothing
! yet" They are about to learn, IN
! short, that to live in world whose
! main energies are being given to
. preparing for war and waging war,
u is an incredibly expensive busi-
ness.
: The new administration tax plan
to add $3,500,000,000 to the govern-
= ment's annual income, was an
nounced on April II. Both Repub-
lican and Democratic congression-
al leaders approved it, in general,
almost automatically. 1t has long
been evident that the moderate tax
increases adopted by the last ses-
sion amounted to little more than
drop in the bucket. Our defense
and o-the-democracies pro-
gram is likely to cost upwards of
$40. 700, 100000, even If we don't
become involved in war ourselves.
Much of the cost will be deferred
for future payment in the form of
national debt But it iE universally
recognized that we must pay for as
much of it as possible as we go,
and that substantial tax increases,
reaching almost every income
group, are no longer avoidable.
Surveys show that the American
people at large are willing to
shoulder the additional burden. 1t
is a strange time indeed in which
advocating higher taxes has ac-
tually become good politics" even
as it is good economics.
Key to the new tax program is
found in statement Of Treasury
Secretary Morgenthau, in which he
said it would be IAN ideal thing for
everyone to pay one-third more
next year than he did in the last
year" 1t is probable that one of
the first steps taken by Congress
will be to up income taxes, on cor
porations and individuals both, by
at least one-third. Some advocate
doubling the base rate, which is
now four per cent, and increasing
surtaxes and lowering exemptions
for full measure.
Higher income taxes will not be
all of it, by long shot. While
there seems little Likelihood Of a
general sales tax being adopted
now-the president is against it.
it is considered sure that some
new sales taxes will be put into
effect, and existing sales taxes in
creased. The taxes, for instance,
on liquor, tobacco and gasoline are
likely to go up. And there is talk
of levying taxes on such hitherto
overlooked items as soda pop, the
humblest of beverages.
Some government officials have
also been considering the possibil-
ity of a general payroll tax, to be
levied against all employers. That
tax, in period such as the pres
ent, would be a gigantic revenue
producer, and would be compara-
lively inexpensive to collect. Main
objection is that it would be a tax
on expense, rather than a tax on
income. A concern might have a
tremendous payroll and still be
earning little or no profit, or even
operating at a loss. At any rate,
the payroll tax still lies in the fu-4f.
ture, and. is not apt to be consid-
cred at this time.
Still another suggestion is to
have taxes paid by the month in
stead of quarterly or even by the
year, on the theory that it is less
painful to pay a relatively small
amount at frequent intervals than
a large amount at long intervals.
Some have also proposed that the
employer deduct employees taxes
from pay checks. This may be
urged in the interest of simplifica-
tion and of reducing collection ex-
pense.
Whatever the details, it seems
certain that the new program will
go through in Jig time and with a
minimum of debate. 1t will place
upon the American people, in all
brackets reached. tax burden un-
in our history. 1t will
bring grim visions of the possibili-
ties of our eventually reaching
tax level, where a man
earning $4,000 year pays more
than a quarter of his gross earn
ings in income taxes alone. Soon
some twenty-five per cent of this
country's national income will be :
going out for war materials and
military expenses in one form or
another. Mars is costly visitor.
The American people, though :
they are almost unanimously in
favor of all-out aid to England, are
still heavily opposed to sending
troops abroad. That is the gist of
a recent Gallup poll. Seventy-nine
per cent of those queried were
against sending part of our army
to Europe to help the British.
majorities were against
sending American air and naval
units.
At the same time, there is no
question but what many men close
to Washington affairs fear that
participation in the ac- \
tual shooting is coming. Some
think that if Britain loses in the =
Balkans and Egypt and is driven q
out of the Mediterranean, this
country will be unable to longer \
postpone the decision. For then
the British Empires lifeline would
he = I