The midland journal. (Rising Sun, Md.) 1885-1947, 1942-02-20
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Washington, d. G..
NEW TAX RATTLE

NEW TAX BATTLE
Biggest fight on Capitol Hill when
it comes to writing new taxes is go
ing to be over the sales tax. Wall
Street forces already have laid pipe
lines to certain congressman for a
sales tax instead of heavier cor
poration taxes, and it is going to be
a knock-down-drag-out battle.
The man in the thick of this fight
is now relatively obscure, but the
public will hear lot about him
shortly. He is Randolph Paul, bet
ter known to Ford, Standard Oil,
and big firms who hire the nations
best tax experts, than to the rest Of
the country. Paul has written a
number of books on federal income
taxes and gave up a $3.50, 900 law
practice to work for virtually moth
ing for the government.
Despite his background, however,
big business will get no comfort
from Randolph Paul when it comes
to the sales tax. He is opposed to
this levy primarily because it in
duces imitation.
''If you add four cents on the sales
price of any commodity" Paul ar
CUES, land a few more pennies on
the price of whole row of other
commodities, labor has an excuse
to ask for an increase in wages.
Prices have gone up, and labor
claims it is entitled to the increase.
Then once the increase is granted,
industry has an excuse for increas-
ing prices, and the whole thing is
started all over again. It can be the
most vicious circle in our economic
life."
Anti-Sales Tax.
Instead of a sales tax, Paul IA
vors a series of very stiff taxes all
along the line. Most drastic of his
proposals is to tax lowest bracket
incomes.
Paul points out that if you take ~
per cent from the big business ex-
ecutive making $4,000 a year he
merely increases salaries to his as
sociates, spends more money on in
stitutional advertising, and de-
creases his net income. This in the
end also leads to imitation. Paul
is in favor of taxing the higher
brackets very heavily, but warns
that the 81, ZOO, 100000 additional at
tainable from this source is peanuts
compared with what the country has
to raise to meet the war bill.
The real spending power of the
nation is in the lower bracket in
comes and Paul contends these will
have to bear the big part of the war
budget.
Other Paul proposals are:
~ Heavy corporation taxes;
(2) stiff excess profits taxes; (S
plugging all loopholes in the tax
laws; az an excise tax on GER
tain specific Injuries which
would not increase the cost of
living.
His recommendations are sure to
be adopted in toto by Secretary
Morgenthau and the White House.
Whether congress will adopt them
will be decided only after one of the
toughest tax battles in history
especially over the sales tax.
HOW TO SEE HENDERSON
Leon Henderson is guarded by so
many secretaries and functionaries
that even members of congress
have hard time getting to him.
Officials Of Alaska, bothered by a
serious price problem in the Terri
tory, tried for days to get an audi
ence with the price car.
Finally, little gray-haired lady
found the answer.
Mrs. John Mccormack, wife Of
Alaska's selective service head, at
tended a woman's club function in
Washington, at which Henderson
submitted to questioning.
Mrs. Mccormack put the Alaskan
price problem to Henderson on the
floor Of the club meeting, and he
promptly invited her to call at his
Office next day for detailed ex-
PLANTATION.
'"The people around the Office"
said Henderson, twill try to keep
you out, but pay no attention to
them. You just march straight into
my Office"
Mrs. Mccormack followed in
structions. She saw Henderson, and
came away with promise Of action.
Fa CAPITAL CHAFF
q Attorney General Francis Biddle
is personally reviewing the recon-
mendations of all Alien Enemy
Hearing boards, which pass on
charges against alien residents in
the u. S.
q The Bluefield, w. Va, Chamber
Of Commerce has taken an unusu-
al step for q chamber Of commerce.
Advocating the clrtailment Of nom
essential federal spending, the
chamber listed q number Of pet To-
cal projects it was willing to forego
for the duration Of the war.
n L.. Earle Davidson. h,lstlinp voaync