The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1942-05-21
Nv STAFF CORRESPONDENT

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sorry savings, rather than outright
taxation, may be employed to
limit spendable incomes to not
more than $4,000 a year and to
collect large war funds from all
people earning over $40 week.
This proposal, introduced in the
house by Representative Gore, Of
Tennessee, has met with consid-
cradle favor among house mem
bers who see it as inviting much
more favorable public acceptance
than would heavy new taxes. IT
legislation, similar to that propos-
ed by Representative Gore. is
passed, it is not expected entirely
to take the place of new taxes but
win mean taxes will not be as
heavy as they would have been
otherwise.
Representative Cores bill calls
for deductions from all wages and
salaries covered by the social Sc
curity act of basic amount rang
ing from 6 per cent for single
person earning $1,040 a year to Is
per cent for a married person
earning over $4,000 a year. In
addition, second deduction
would be made on the income re-
manning to a person after the pay
ment of income taxes. This Sc
cond deduction would range from
$60.40 on net income of ST GAO,
after taxes. to $11,326 on an in
come of $4,000. Anyone earning
over $4,000 would be required
to buy war bonds with all re-
manning income, which would
thus limit the actual retention of
incomes to limit of around $685.
600 a year.
Representative Gore argues that
dependence upon voluntary saw
ings is anarchaic and inadequate
for total war as reliance on vol
untary enlistment in the armed
forces" Although many congress-
men fear the imposing of such
heavy forced savings upon the
people, number strongly prefer
this plan for the postponement of
the expenditure of wealth over
tax suggestions which practically
mean the come made during the
war period is concerned.
In addition to his compulsory
savings bill, Representative Gore
also has introduced companion
measure calling for the freezing
of wages and the freezing of
farm prices at parity. Both of
these measures are in keeping
with the suggestions made by
President Roosevelt recently, al
though the President didn't give
his views on taxation as against
compulsory savings.
Under Representative Cores
savings plan, the bonds and
stamps given in exchange for pay
ments from income could not be
cashed in until after the war, ex-
cept in cases of necessity. They
would also bear not more than l
per cent interest. The collection
would be handled through the
present social security machinery.
Many congressman are hesitant
about rushing through this or any
other plan for what one senator
calls "the rationing of money"
until the public has recovered
from the shock of other ration
ing-particularly the rationing of
gasoline in the East and North
west which, in a fortnight, has
completely altered the living hab-
its of 100000 automobile own
ers. Congressman from the a.
reas affected are receiving many
letters from people who think
they are not being given fair
deal on gas rationing, although
officials here are, in general,
pleasantly surprised that the
public has accepted this drastic
curb as well as it has.
The price freezing order, now
in force among retailers, manu-
facturers and wholesalers is
bringing more protests than gas
rationing, particularly from bus
mess groups who were taken I'M
awares and fear they will not be
able to continue in business I'M
less some relief is given. Many
retailers point out that when
wholesalers and manufacturers
increased prices during the past
year, they absorbed part of the
increases instead of passing them
on to the customer, and because
of that they are now forced to
sell at decreased profits for the
duration of the war. It is expect
ed in cases where the hardship is
proven to be great, adjustments
will be made.
What will be rationed next is
being kept a close secret by the