Evening star., 1941-07-15

these citizens are paying their just
share of the cost of Government.
Cost of Collection Cited.
There is yet another reason, 1t
seems to me, why broadening the
base by lowering exemptions is not
desirable. 1t costs the Bureau of
Internal Revenue approximately
$3.50 to handle each return upon
which a tax is paid, and so cents
for return upon which no tax is
paid. Therefore, there must be
faced the very practical situation
that it may cost more for admins
tration than the amount received
from these low income earners.
That is particularly true if the rates
are in the same ratio of percentages
as are imposed upon higher incomes,
and certainly it would not be just to
impose higher percentage rates.
Excise taxes, which are imposed
in various forms upon many COM
moditieS and many of which cannot
be justified except during a period
of emergency, are usually imposed
upon commodities which are claSSi-
fled as luXurieS, or at least not
essential to a reasonable standard of
living. In normal times such taxes
should not be imposed. They are
definitely regressive, and curtail, to
a greater or lesser degree, produce
ton and consumption. During pc
riods of national emergency, such as
we now face, an entirely different
situation exists. 1t not only be-
comes desirable to impose excise
taxes on many commodities to raise
revenue, but also to act as brake
on runaway and inflationary prices.
which not only protects the average
consumer but also tends to minimize
the competition between these lux
ury commodities and national de
fense supplies for the materials and
labor needed in the manufacture OF
both.
In considering these problems we
must not lose sight of the problem of
maintaining our normal economy. as
we'll as providing for the emergency
economy From what l have said ii
will be seen that in the preparation
of a seyenue measure during the
present period, consideration must
be given not only 10 the problem of
raising revenue. but also to its eco
nomic effect upon the people and
upon business. Not only the present
must be considered. but also the fu-
ture. Destructive taxes may raise
revenue now. but next year their
destructive influences may greatly
reduce the returns and the amount
of revenue.
People Willing to Pay.
believe the people of our country
are fully aware of the dangers We
face-of the uncertainty of our fu-
ture, and are willing to pay what
ever is necessary for our defense
and to preserve the American way
of life We would rather give up
every dollar of our wealth than to
find ourselves subjected 10 the will
OF foreign dictator. Many other
countries in the world today are
the best proof of what that would
mean. Our wealth is nothing COM
pared to our liberty and the right
and privilege of those who are TO
come after us to enjoy the opportu-
mites that we enjoy We are spend
ing huge sums of money TO make
that possible. Soon. it is expected.
expenditures will reach the Stagger-
1f
The amount ultimately to be
reached is impossible Of prediction
at this time. but whatever it may be
the future of America is worth it.
The proposed revenue measure is
designed to raise slightly more than
$500, 100000 in excess of the pres
ent law. This is a small amount
compared with our expenditures.
But in times of great national emer-