Evening star., 1941-07-28
The New Tux Bill

The Ways and Means Committee,
after three months of study and
compromise, has reported to the
House its new tax bill-a measure
designed to raise the StupendOuS
total of $13,000,0000 in revenue.
This-the greatest tax bill in our his
tory-addS S3.529, 100000 to existing
taxes, but the total is expected to fall
at least 100000 100000 short of an
ticipated expenditures this year.
These figures, both as to revenues
and deficit, are so great that it is
difficult for the average taxpayer to
comprehend their meaning, but
there is no escaping the fact that
they bear directly both on every in
come in the country and on the fu-
ture of our national solvency. That
being the case, it is important to
examine some of the things that the
committee has done and has re-
Trained from doing.
In the majority committee report
It is conceded that the bill falls short
of perfection. And the minority
comment on the measure is that
"the most that can be said in its
favor is that it might have been
worse"
The full burden of the increased
taxes is placed squarely on the
shoulders of those who were already
footing the tax bills. Increases in
hidden taxes, of course, will reach
virtually all citizens, but the COM
mittee turned a deaf ear to Sug-
geStionS for spreading the income
tax burden by widening the tax base.
Likewise, the committee was unwill-
ing to impose requested penalty
taxes on durable consumer goods
that compete with the needs of de-
fense industries. These taxes had
been urged for two purpoSeS-aS a
curb on infiationary spending and
as a means of conserving raw ma
terials for defense, but the rates
approved by the committee can
hardly be expected to have either
effect.
A sharp difference of opinion also
developed between the majority and
minority members with respect to
defense spending. The bill it
self ignores this matter on the
theory that it lies within the prov
ince of the committees on appro-
priations, but it is significant that
the majority report contains no rec
concentrations or suggestions with
regard to non n-defense items.
The minority, however, dWelt at
length on this subject. To some eX-
tent the minority expressions may
be discounted as partisan in nature,
and they would also be more per-
suasive were it not for the fact that
Republicans all too often have joined
with Democrats in voting for large
and wholly unwarranted increases in
non-defense appropriations.
Despite these considerations, how
ever, the fact remains that the mi
nority report is an impressive docu-
ment. It shows that from July l,
1898, to June 80, 1941, the New Deal
spent $4,000, 100000. That is more
than the total cost of running the
Government from the time of George
WASHINGTON through the World War
administration of Woodrow Wilson.
Against the New Deal expenditures
during the eight-year period, there
were revenue receipts of $4,000, ,OO0,-
900, leaving a total deficit of ST.
600 100000
Thus, as the minority pointed out,
our national finances were in critical
shape when the need for huge de-
fense outlays became imperative.
1t was against this background that
Secretary of the Treasury Morgen-
thau told the Ways and Means Com
mittee that non-defenSe spending
could safely be cut by Sl,OO0,0OO, 900.
Other competent witnesses urged a
cut of twice that amount, But there
has been no such reduction, and no
evidence of any determined admins
tration support for such action.
There are indications that gag"
rule to prevent the offering OF
amendments will be sought when the
bill is called up in the House, and it
is to be hoped that such an effort,
If made, will be defeated. Americans
generally recognize the absolute
necessity of paying higher taxes,
and they will pay them willingly II
they feel that their sacrifice is being
put to the best possible use. But
there is no reason to believe that
this tax bill is the most scientific or
the most equitable means of raising
the necessary revenue, nor is there
anything to indicate that the money
so raised will be spent to the best
possible advantage. Therefore, the
House, having in mind the great
public interest in this legislation,
should not seek to stifle all suggested
improvements, but should gladly
consider any proposal that might
-,-e,a tho tax burden more euuit-