Evening star., 1942-10-19

/ER Publisher The New Bedford (Mass.)
destroyed.
It is simple arithmetic that whatever destroys corporate
earnings in any form the tax burden wage
Garner and small taxpayer.
SENATE TRICK 215 HOUSE 210
It not enough make lying definition of "excess
profit" and to tax accordingly
new attack on business has crept into and remains in
current House and Senate bills Senate Section 215 House
21O
provides that if corporation buys or holds the con-
trolling stock of another it shall be PENALIZED in taxes
Such shall have deducted from its earnings
credit for excess profits purposes cent of the cost
of the stock purchased or held
The effect OF to increase already heavy taxes
and to prevent purchase or sale in many instances.
TT IN NO SENSE PRODUCES REVENUE FOR WAR
IT LENDS ITSELF TO FREEZING OF BUSINESS IN WAR.
THE $4,000 CLASS
This spring the C1o in Detroit demanded limitation Of
income of individuals to $25 900 per year.
It plank of class warfare which the Of L. de-
nounced.
The President and Mrs Roosevelt supported the CIO
plank
But neither the President nor the CIO told the public
all individual income 900 conscated ONLY
1874 MILLIONS OF REVENUE WOULD BE SECURED.
This less than enough pay the cost of day of
AND THIS AMOUNT WOULD BE SECURED FOR ONLY
ONE TAX YEAR.
To limit ANY ONES income whether to s25 900 or to
$500, soon freezes the income at that figure.
For there is no INCENTIVE TO PRODUCE.
GREATER TAX BURDEN FALLS AUTOMATICALLY
ON BUSINESS AND THOSE IN LOWER BRACKETS
The $25 900 limitation is class warfare phoney and
makes sucker of whoever swallows it.
This "$250 900 income limit" is not in the current bll
the tax rates. however, Chairman George states amount
to the
A ONE-CENT INCENTIVE
In system of private enterprise democratic SYSTEM
for which fighting this war; there inevitable
equaities of income.
Opportunity incentive when incentive goes op-
portunity goes.
Let what happens, in extreme illustration to
the dollar of one of the socalled rich
Assume this "rich person is controlling of
poration which is in the "excess profits" class.
The excess profits tax takes 80 per cent leaving the
corporation 10 cents per ST 90.
The corporation out the 10 cents in dividends to the
controlling sockholder who in the higher brackets
OF the 10 cents paid to the controlling sockholder his
personal Federal tax in the highest bracket may well
80 per cent
The controlling stockhoder then cent or less Of
dollar of the excess profit of the corporation controls
Yet even this tax policy conscaory and dishonest it
s would be justifabe if IT WOULD HELP TO PAY FOR
AND WIN THE WAR.
But it will and does have the opposite eect-IT DRIES
UP EXCESS PROFITS" AS SOURCE OF REVENUE
No system private enterprise CAN EXIST on incentive
OF ONE CENT per dollar of profit
THIS PORTION OF CORPORATIONS AND INDI-
VIDUALs' INCOME JUST FADES OUT OF THE PICTURE
And here again the wage carry portion of
the extra tax load the dollar bracket should be en-
couraged to carry.
This is well known to those who sing the class hate songs
They well their attacks the taxpayer Of the
upper brackets do not help but throw greater burden
the lower income groups.
But their purposes POLITICAL not for war.
THE 1.-TWO WARS"
Are business and the people, rich and poor unable pay
for the WAR?
NO, they are ABLE and WILLING to pay-WANT to pay.
They willing to pay FAR MORE than the present bill
asks.
They are willing to pay WHATEVER THEY HAVE TO
AND CAN-to pay for and win the
BUT THE ADMINISTRATION, and Washington
coterie trying to FIGHT TWO WARS at the time
One the for existence against the AXIS the other
THE CLASS WAR, THE HATE WAR, which dvided-and
divides-America as it never before divided.
BOTH WARS OF COURSE, CANNOT BE WON
The class warfare sets class against clasfor political
effect
It's weapon is propaganda-it knows nothing about
PRODUCTION either OF WEAPONS or REVENUE
It understands neither the freedom" about which it