Detroit evening times. (Detroit, Mich) 1921-1958, 1942-03-06
Higher Taxes
Seen a Blight
TO Enterprise
U. S, NeeIects Principles
Of Human Nature
By HUGH S. JOHNSON


that have been proved so often
in human experience, so often
and with so few even apparent
failures, that hardly anybody
contests them in theory.
One is that civilian morale
the popular sense of justice and
of government concern for the
general welfare-is necessary 10
national happiness in peace and
as essential as the military NOR
ale of soldiers in war.
The other principle is one of
taxation and revenue. 1t is
called the law of diminishing re-
turns. II is that rates of taxa
ton can be so high as 10 dis
courage our business and other
incentives TO create wealth.
Tax rates above this limit-no
matter how high they Go-will
result in lower, rather than
greater, revenue TO the taxing
Source-and the decline in reve-
nue. will go relatively faster and
farther than the increase in
rates OF taxation.
OUR war administration seems
" never TO have heard of
either principle. At least its ac-
tions and proposals do not indi-
cate that il has.
The Office of Price Admins
tration is also the Office of Civil
ian Supply. It's duties are not
only TO prevent undue price
boosts, but also to insure at
least minimum of supplies TO
the civil population.
IT has acted boldly and cour-
ageously TO control a few prices
although, in spite of its efforts.
the cost of living has gone stead
lily upward. But if it has done
one single thing otherwise 10
conserve civilian supply. | am
not aware of what il was and
when it happened.
On the contrary, il has moved
ruthleSsly, without warning. and
with no very convincing show Of
necessity, 10 ruin many a small
business and 10 cut off. COM
letely or partially many
sources Of civilian necessities.
1t has done little or nothing
TO reclaim and conserve alterna-
tive sources of supply.
| IT HAS simply moved in the
L easiest and most arbitrary
way 10 take what we have for
Allied and American military
uses on Harry Hopkins slogan
Of Give 'em hell' or Mr.. VIII
liam Bats Root. hog, or die"
Another great example which
displays indifference 10 both
well-established principles for
war and peace is the treasury'S
astonishing tax proposal. Who
knows what proportion of the
war cost. should be borrowed?
Nobody, and. anyway. that is
not the real question. The real
question is:
What proportion of a cows
food can YOU take away and
still get milk"
MR.. MORGENTHAU wants 10
VA double this years already
high income tax rate for next
year and collect a proportion Of
( the latter this year IN addition.
| know plenty Of people who
haven't the money 10 pay this
years tax and some who even
II they sold their assets. couldn't
pay both years.
] know men and corporations.
not few Of them. who. II they
worked much harder this year.
riSked more, did more business
and made more money than in
the last tax year, would be
worse of than now az the end
of the year.
Are they going 10 do that
1t doesn't lie in human nature.
VET all these calculations are
L based on Grcg' rise in
national income to leo billions.
consumers goods pre- ion If
90 billions and hence ~ billions
OF excess purchasing pow"r
The treasury wants - Syuh1nf
away that IS billions TO pr, en'
counter-bidding az increased
prices for the >Cant supply.
II is said 10 want 10 use cvcrv
means 10 do this Including
forced loan,. inS'allncnt do
auctions from pay rolls. and the
freezing Of bank accounts Yet
all this is based on theory
probably incorrect and without
regard 10 ability 10 pay or effect
on nation7l morale
That bill certainly need, do
bate
Dstrtutcd by King features synd INC
! tEknWK-X~