The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1942-09-10


in the throes of initiation or we
will have iron-bound controls
operating to prevent it.
The President has indicated
that he means to use all of the
extraordinary powers he has dur
ing war to keep the cost of living
from rising further and to stabil-
ize wages. in way that will put
an end to strikes, slow-downs and
squabbles between labor and in
dustry. But his well-known SYM
pathy with labor and his unwill-
ingness to interfere with its So
called rights" during the first
months of war, has led the public
to take "let-see" attitude toward
his plans, no matter how reas-
surfing they may sound.
AS for farm prices, it is we'll
known that the New Deal mem
bers of the farm bloc, who are
candidates for reelection in No
vember, will fight tooth and nail
against any plan which they
think might antagonize the farm
ers.
On the other hand, the general
public's resentment over increas-
ed food costs, over scarcities of
food caused by price problems
rather than by reduced farm pro-
duction, and over strikes in vital
industries may have reached the
point where it holds more weight
politically than the demands of
labor leaders and farm leaders.
For, in addition to the feeling of
the people in general against the
pampering of these groups, there
has ben plenty of evidence re-
Gently that many laborers and
farmers themselves don't want
special attention if it is going to
interfere with our war program.
In addition to the necessity for
stabilizing wages and farm prices
if initiation is to be curbed, it is
generally recognized here that the
kind of tax program finally a.
greed upon will do a lot toward
encouraging or stemming infla-
ton. The treasury's drastic pro-
posal to have a high tax on spend
ing rather than sales tax would
probably aid in preventing in
flation but might also prove such
a severe burden on some income
groups that it would seriously
lower the standard of living.
The plan for a tax on spending
has been offered in place of a
sales tax and is similar to a sales
tax in many respects. The chief
difference is that with a sales tax
We would pay tax each time we
made a purchase whereas with a
spending tax we would pay a
lump sum tax on the money we
spent over the period of a year.
People of small income, who have
difficulty as it is in saving the
money to pay a high income tax,
would find it much more diff
cult to handle an additional lump
sum than to pay a penny or SO
tax on each purchase.
It is expected that the final tax
program will include a plan for
employers to deduct a percentage
for taxes from all wages and sal
aries as they are paid. Then,
when the employees file income
tax returns, they will pay the ad-
ditional amount they owe or ask
for a rebate if too much had been
deducted from their wages.
Much favorable attention has
been given to the Ruml plan, sug-
gested by Beardsley Ruml, treas
urer of R. H. Macy & Co. and
chairman of the Federal Reserve
Bank of New York, which calls
for putting taxes on a pay-as-you-
60 basis instead of paying taxes
on the earnings of the previous
year. This plan would virtually
cancel all taxes on 1912 incomes
but calls for the payment Of 1913
taxes as income is earned. I'm
der the Ruml plan the govern
ment would receive just as much
income. but there would be this
differences: A man who would
ordinarily pay a 500 tax in
March 1913, as the first payment
on his 1912 income tax, would
pay the same 500 during the
first three months of 1943 but it
would be on money which he
earned during 1943.
What plan will finally be adopt
ed is anybody's guess. but we car
all be certain that taxes next year
after the ever-important cleo
ton is over-will be tremendous
1y high and will include practic-
ally everyone who is earning any
income at all.
The predictions of what is 60
ing to happen in this country
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