Detroit evening times. (Detroit, Mich) 1921-1958, 1942-09-23
Double Talk
Found in Peg
Set on Prices
Sept. IS Level Adopted
but-Read Further
By PAUL MALLON

CleS WIlCH iildhS dWdhuS hi ioi 81
print at the top and then take
them away in fine print at the
bottom. Yet, this formula is
noticeable in the new price-wage
resolution. 1t happened this
way:
Mr.. Roosevelt wanted the
farm price ceiling set as of any
recent date. or parity-which
would raise existing farm prices
a little. Congressman, in writ
ing the legislation, notched the
ceiling higher by placing 1t at
parity or the highest price since
January /.
Some criticism arose about
this, so the congressional penmen
turned around and said, all
right, we write it Mr.. Roose-.
velts way and fix September ID
as the ceiling date.
This was announced, displayed
in the press, and every one con-
Guided the ceiling had been
slipped back-unless he read the
resolution.
True, in the first sentence, the
resolution directed Mr.. Roose-
Welt to take the level of Septem-
Der Is, except as otherwise
provided in this joint resolu-
ton" But; down in the body OF
the resolution, it otherwise pro-
vides," just what the congress
men wanted in the first place,
fixing the ceiling at the highest
price since January l, or parity
| prices.
The highest available price
ceiling is thus to be taken for
each product. and. if you will
apply the legislation TO each,
you will find it allows increases
of 9 per cent to IS per cent
above existing levels.
GO ALSO with wages. The
~ legislation approves the War
Board yardstick, allowing wage
increases to the unions to what
ever extent the cost of living
has been increased since Janu-
airy, 1941.
AS farm prices are bound TO
increase under the farm section,
the cost Of living is certain to
continue To go up. Thus, wage
increases are to be granted here
after, by whatever degree the
farm prices are allowed to in
crease.
THIS resolution coupled with
l. the tax bill-now appearing
simultaneously from the Senate
finance committee-afford the
broad skeleton outline of eco
nomic war policy "a skeleton
which seems to have been lost
from public sight in the confus-
ing arguments over details of
the legislation in both cases).
The tax bill represents the
ultimate extent to which cor
porations' taxes can go 1.-THE
congressman BELIEVED, without
destroying the private initiative
necessary to maintain produc-
| ton.
THE individual rates Of the tax
Il bill are unprecedentedly ter
rife, but all agree-treasury and
| Congress-that they will not
prevent initiation. The fact is
the enlargement of war incomes
is restricted to the low income
group, which has not been pay
ing income taxes.
Practically all the increases in
wages are restricted TO this
group, but Congress has found
it difficult or impossible to reach
them with taxes.
1t could be done, to some ex-
tent, with a sales tax, because
this low income group no doubt
is the only one spending more
money as a result of the war in
fiation, but sales tax would hit
all.
Another way would be forced
savings. but both methods are
politically unpopular. Congress
dropped them for a 5 per cent
gross income tax which likewise
hits all.
TT IS not considered wise po'
Il litically to go after the low
wage groups separately, in any
way, so what we have as a Ia,
bill really is mainly further
tremendous incre ase on all
mostly on successful people, the
best laborers. farmers, the non
unionized middle classes, tho
white collar workers who have
had no increase in wages, bu'
will have TO pay higher prices
and tremendous taxes. The bull
of additional revenue will come
from them and from corpora
tions.
The tax bill is. therefore, M
restraint on initiation. 1t vii
leave possibly $35, 900, 100000 o
war revenue TO be raised annu
ally from treasury borrowing
(bonds) from banks and insur
ance companies, which hold TIL
savings of the people.
MO ONE likes it very much
~ because it does not do an.
Job efficiently-raise ougl
money, prevent initiation or pro
vide a fair and equitable tax dis
tribution, but, as in the case o
the wage-price bill, it seems Z
be about all that is POLITICAL,
feasible.