The Western news. [volume] (Libby, Mont.) 1933-current, 1941-05-22
Consider Lowering
Income Tdx Exemptions

tax exemptions, despite the press
ing need for every dollar that can
be raised There are two motives
for resisting the change. One is
economy. 1t will cost as much to
handle the small income group re-
turns-meaning from those persons
who at present do not have to make
any-as the resulting revenue will
produce.
The other reason is purely polit-
ical. There is no desire on the part
of congressman to build up resent
ments.
Moreover, the treasury scale of
tax increases is accomplishing the
ends always desired when most
people advocate reduction of exemp-
tons without doing it. The point
is that from the treasury standpoint
the only desirable point about re-
ducing exemptions in the income
tax schedules is not to get more
people to pay taxes, but to make
those already paying taxes pay
more. A reduction of $500 in the
exemption. obviously, not only
makes more people FIJI out income
tax blanks, but it adds $500 to the
taxable income of every person now
paying taxes.
The treasury has SO coldly
stepped up the percentages, and at
such comparatively low figures, that
this objective is no longer impor-
tant. Besides, the treasury has al
ways been more realistic than con-
gress about the very high brackets.
The treasury experts have always
known, from experience, that as
soon as the government begins TAX
ing more than three-quarters of an
income--in the top brackets of
course-the income tax payer in
question loses great deal of incen-
tive SO far as making any more
money is concerned.
If the income tax exemptions are
not lowered, and this is the present
prospect, there is not going to be
any greater realization on the part
of the small income tax group that
big government spending DOES
take a toll from them. They are
going to keep right on thinking that
it does not make much difference
to them personally what taxes are,
because the rich are going to pay
them-but they overlook the hid
den" taxes on such items as ciga-
rettes and plavinG cards
War with binocu-
lars. instead of guns, is one way that
appeals to President Roosevelt in
describing the 1,000-mile patrol-the
fact that American warcraft will
patrol the Atlantic to a distance of
1000 miles from the American shore
and report the presence bf any Nazi
planes. submarines or raiders they
may see.
Its tremendous Importance is ap-
preciated by the British. One
prominent figure here pointed out
that examination Of detailed figures
OF shipping losses discloses that
most OF the sinkings by submarines
and aircraft have occurred on the
British side OF an imaginary line
down the Atlantic halfway between
the two shores, whereas most OF the
sinkings by raiders were on the
American side OF that line He also
pointed out that location OF raiders
presents q much more difficult prob
lem than location OF submarines.
News OF raiders sinkings does not
usually reach the admiralty until
days or weeks after the event,
sometimes longer than that. Most
OF the raiders are fast, and quite
capable OF being thousands Of miles
from some scene Of any given opera
ton before the British hear of it.
But with American patrols telling
the world by wireless every time
they see a raider, a comparatively
small number Of British warships
would obviously be much more eff
fective. They would know instantly
that German raider, for example,
was at . precise spot. The probable
course of the raider in flight from
the American patrol could be cal
culated, and her e1Act strength
would be known. So that II it was
a pocket battleship, as in the case
OF the Graf Spec, battle cruiser
could start in pursuit, whereas if it
was a converted merchantmen q
small cruiser would be ample.
But it might and probably will &c
further than that. Not only might
the American patrol give the 10
cation of the raider as of that first
moment OF sighting it, but it might
easily follow the German raider,
continuing to give its position.
This task is not as spectacular as
1t seems to some headline writer's,
yet it is tremendously important, for
there is no doubt that the number OF
u. S. craft in this patrol will be
increased constantly SO long as any
Nazi raiders remain in the Atlantic.
Farm Payments
May Be Reduced
It's too soon to begin worrying,
- vo,, oro farrnar crnuinc wheat