Detroit evening times. (Detroit, Mich) 1921-1958, 1942-10-09
Expenditure
Tax Revived
By Trea sury
Moreenthau Makes Bid
for 3 Billion Touch
BY PAUL MALLON

WASHINGTON, oct 9.-That
w additional Sc O0000O.000 tax
touch that Treasury Secretary
MeFeenthau has been talking
about vaguely, is the old eXpen-
dltureS tax, TO be busted off,
revised, and simplificd.
This tax is TO be offered atop
the SS.000,000,O00 new taxes in
the bill now being passed by
Congress. and the $4,000, 600, 900
already being collected-for
total tax levy of $4,000 600 600,
nearly twice as much as at
present.
The expenditures tax was
laughed ont of Congress when
il was presented first some
weeks ago. The treasury thought
il simple, but no one else did.
nicSs-they-used the word with
another meaning.
As straight as any one could
get il, the treasury wanted 10
make citizens pay taxes on their
total living expenses, which
would require every one TO keep
books II probably could not
have been efficiently enforced.
TREASURY thinkers are work.
l. ing it now into sales tax
form. where they at least would
be able 10 collect il. Details
have not been decided, but one
form now being considered
would require each citizen 10
hold an overall rationing card
and pay an expenditures tsales)
tax on each purchase made
above a certain exempted
amount.
For instance, you might pay
nothing on the first loaf OF
bread, but a 10 per cent tax if
you wanted a second one.
Congress is not ripe for this,
but the treasury may boom the
idea up a bit by getting the
new economic lid-Sitter, Justice
ByrneS, 10 come out for II.
Even in more efficient form. it
seems to offer an appalling sys-
tenn of rationing-tax regimenta-
ton over the lives of the people
and. apparently, only for the
purpose of getting around the
simpler but hated sales TAX
because liberals do not like
that term.
Nevertheless. the treasury will
press the idea in some form on
Congress Immediately after the
present tax bill is passed.
THE summed forced savings
L tax requiring every wage
Garner TO invest cert i n
amount in government bonds
also will be pushed again at the
same time or later. This would
raise about $4,000. 1000, 900 more,
10 double the amount which the
treasury is now taking in tSl3,-
000,000,000 a year, in war saw
ingS bonds.
This voluntary sales system
cannot he pushed much higher.
The inspiring patriotic campaign
of the movie people produced
SS77227 100000 in September, al
though the goal for the month
was S775.000 900.
Mr.. MorGen I h a u graciously
collected additional last-minute
returns by telegraph, to swell
the months total above SITS
100000 in order that the movie
people (Some of whom worked
themselves into nervous break
downs) would not feel their
efforts lacked success. But this
experience in voluntary sales OF
bonds has brought the treasury
closer to the forced savings idea.
If all the tax and bonds plans
Of the treasury are adopted the
government would take next
year about $4,000. 100000 from
its people, nearly half the ma
tional income.
CRUMBLING is growing in
" Congress and elsewhere
about the waste of money in
Washington. One of the few
tangible examples has been Of
fered by Representative Engel
of Michigan in a study he made
Of the S70,000.000 new war de-
partment building across the
Potomac River.
Congress appropriated on Y
$50 100000 for this building and
was told il would be built for
that amount II did not find
out, until EnGle spoke the other
day. that the building cost twice
that much, with no appreciate
increase in floor space Among
the reasons for such a heavy
cost were tho following wages
paid on the job
BricklayerS. Sis an hour;
carpenters. S1.61i2: electricians,
81 50: iron workers and spray
C.