Detroit evening times. (Detroit, Mich) 1921-1958, 1941-08-13
PegIer Urges
Ban onUnion
Political Fund
Churches Forbidden
To Contribute
By WESTBROOK PEGLER

COME of my legion OF WELL
~ wishers in the two big unions,
namely the AFL and the Go.
have warned me that / am be-
coming a bit Of a nag on the
subject of racketeering and anti
American or Communist activity
in the house of labor.
That being so, il il is so, am
glad to offer today remedial,
constructive suggestions which
have reason to believe will evoke
cheers from the common man or
working stiff.
First, inasmuch as a new in
come tax bill is being hammered
into shape, l would include In
the final draft a provision that
all unions. local as well as ma
tional, be forbidden TO contribute
or lend as much as dime TO
any campaign fund. whether for
the candidacy of an individual
or OF ticket.
CHURCH, or religious, organi-
~ cations are forbidden 10 do
this now. They enjoy tax exemp-
tion only on the proviso that
they lose ii il substantial
part" of their activities consists
of carrying on propaganda or
otherwise trying TO influence
legislation.
In practice. this proviso II
waived because no national gov
eminent as yet has had the
temerity 10 try TO enforce IL.
Moreover, the income of re-
ligious organizations consists
largely of gifts in small sums
which are not taxable as income.
But union income is not made
up of gifts. 1t is obtained in
dues, fees and assessments and
thus would be taxable II Con-
gress cared TO ease few little
words into the new bill.
I WOULD tax all union income
L at fair rates, but / would pro-
vide also that any contribution.
loan or expenditure Of un o n
money for political purposes
should be matched. dollar for
dollar. with special tax.
Thus. IL John Lewis were 20
toss 100000 10 the campaign
fund OF some political party,
whether as a gift or loan, the
national treasury would move
in and take another $500, 900 for
the government.
know positively that many
= Of Johns subjects don't want
him 10 have the privilege OF
throwing their money around
and would thank Congress 10
make II impossible for him 10 do
so. inasmuch as they have no
voice in the matter themselves.
VERY few Americans know
that until very recently at
least, the internal revenue didn't
even bother 10 examine the
books OF unions.
Possibly that custom OF the
bureau has been changed lately.
but the last time / checked I'D.
unions were exempt even from
inspection
IT does seem careless Of a gov
eminent 10 exempt unions from
inspection 10 say nothing OF in
come taxes. when you consider
that the existing act provides q
right 10 inspect and tax il sny
part OF the income inures TO the
benefit of an individual.
The internal revenue. at the
date OF my last inquiry. assumed
IN the face Of evidence 10 the
contrary, that no union leader
would be so dishonest as 10 take
any part Of the unions funds.
WOULD tighten up on the en-
forcement and put in positive
language compelling unions 10
pay. regardless of whether anv
part OF the funds Injured TO the
benefit Of an individual.
The total union income Il
around $1,000. 900 900 a year and
II rs worth taxing. II churches
are legally obligated TO refrain
from political activity, or paw.
unions should be similarly bound
and the effect Of inspection and
taxation would be good for the
union members and the whole
community.
Copyrighted by United Features synd.. In,
0Ef3{BY Rf-fAiRC