Evening star., 1942-08-21

Frank R. Kent. was behind the
sit-down strikes, the closed-shop
campaign. the 4o-hour week and the
Wagner Act, which originated with
the labor bosses. In return the labor
bosses have supported the WPA, the
NYA, the CCC, the AAA and all
other devices incidental to the broad
spending policy on which the New
Deal is so largely based. There was
never clearer political deal.
Mr.. Roosevelt gave to these paid
professionals far greater recogni-
tion-and hence respectability-than
they, or anyone else, ever dreamed
would be accorded them by Presi-
dent of the United States. In turn,
regardless Of factional divisions and
personal feuds, they have given him
a complete political support. includ-
ing money contributions to his CAM
paigns, such as no President ever
received before.
His influence has been constantly
back Of them and their influence
has as constantly been behind him.
1t has been an alliance Of which
each has boasted and, while there Is
room to argue that the country has
suffered as result, there certainly
has been nothing concealed about It,
Happy hearted Policy.
All Of which makes interesting
the recent stand Of the AFL against
the Presidents proposal arbitrarily
to limit all incomes to $25, 900 after
taxes. Mr.. Roosevelt made this rec
ommendation early in the year and
1t was enthusiastically indorsed by
the radical elements generally, who
saw in it a continuation of the
happy-hearted administration poll
icy adapted from the late Huey
Long, of having the rich pay the
bill and the poor-presamably-get
free ride.
To be sure, any superficial ex-
animation Of the proposal showed
its shallowness and no economist of
standing could ever be found to
support 1t. But that did not pre-
vent a great clatter in its favor
by the numerous journalistic and
political individuals who respond
to every White House utterance az
though inspired.
Under such circumstances the op-
position Of the AFL, expressed last
week before the Senate Finance
Committee, is worth noting, not 50
much for the weight it will carry
with the committee as for the fact
that so far as can be recalled It
marks the first time either labor
faction has fatty opposed an eco
nomic proposal-or, for that matter.
any proposal-emanating from the
White House. Until now the rule
has been that whatever plan Mr..
Roosevelt suggested the labor
leaders applauded, and whatever
move the labor leaders made Mr..
Roosevelt, either actively or pas.
SlVely, approved.
AFL on Sound Ground.
1t may or may not be important
that on this $25 900 limit the AFT,
for the first time has dissented from
presidential proposal, but it does
seem to mean that the AFL. differ.
ing from the CIO. is inherently con-
servative and, when unaffected bv
the necessity of trading" inclined
against taxation schemes designed
to cripple business, on the very
sound ground that when business is
crippled labor Is hurt more than
any other class.
The fact, OF course, is that thu
Ireasury's own estimates show that
II all income above $4,000 a year
were conflscated and then, out Of tho
remaining $25,o00-a-year incomes
taxes are taken according to the
rates in the pending bill, the total
collected by the Treasury would be
about s6oo,0OO,oOo, which would
finance the American war effort for
about four and a half days.
In taking its stand against this
S25, 900 proposal the AFL is on sound
ground. 1t is a ridiculously made
quate proposal which would. n
adopted, result in less revenue from
the highest bracket incomes than is
now received. Far less sound, how
ever, Is the AFL's opposition to the
general sales tax.
Calamitous to Poor.
Every reasonable man knows that
only through g. sales tax or a per.
sonal income tax, which will reach
the lowest incomes, or in some form
OF compulsory investment In Govern
ment bonds, or through all three OF
these, can the menace Of surplus
buying power be removed and Gov.
ernment revenue raised to the mini
mum requirements.
Having differed with the President
on one economic proposition, 1t
would be immensely encourag. to
o~S tAAAo AsbboA olSdAl4AdtlOIIs Va WlL0
equally sound reasons, differ on an
other.
II there is intelligence enough in
the AFL leadership to know that
the s25,00o idea is foolish, there must
be enough intelligence to know that
by no possible means other than a
sales tax can the Governments raise
anywhere approximately as much
money as 1t needs.
1t must know that an inadequate
and inequitable bill. such as the
House recently passed, not only viii
fail to produce the necessary money
but will dry up the sources Of rev
enue and foster an imitation, the re.
suit Of which will be calamitous both
to rich and poor-but far more ca
lamitous to poor than to rich.
(copyright. ie4lD