The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1942-05-28
Economic
@&i9hA1hA
National and International Problems
Inseparable from Local Welfare

AS 'OlSItSS settles uoNH 10 lle III
"tricate task of formulating a national
economic policy for wartime, it is OBJ
lviouS that the road ahead is Il rocky
one, alive with pitfalls. All are agreed
tthat eve and heavier taxes are nec
lessary. But there is Il wealth of dis
agreement as to Just what groups
should be forced to bear the bulk of
the burden. And there is an equal
amount of disagreement over such vital
matters as wage and farm price cell
ingS.
The Seven-point program laid down
by the President in his recent message
to Congress and the speech to the pub
lie which followed it, provides i'm
portant groundwork. Only Il relatively
!Small proportion of the nations news
papers went on record as being 100
per cen for or 100 per cent opposed
to that program. The bulk of them APP
proved it with reservations. Those res
ervationS will afford fuel for red hot
Congressional debates in the weeks to
leone.
Here is how matters shape up at the
|present time:
/. Most economists are agreed that
lit will be impossible to stabilize the
cost of living until very strict controls
are imposed or farm prices. The Pres
|ident seems to share this view. But the
strong Congressional farm bloc is ap-
%parently determined to fight that with
all its power, and il has Il good chance
of coming out on top.
:. In many quarters the belief is
held that it will be impossible to
stabilize wages without additional leg
islation. The President said that he
feels no such legislation is necessary.
Congress will be watching labor with
a careful eye, and if any widespread
demands for wage boosts arise, it is
likely to slap through Il tough law in
JIG time.
>. The proposal that tax laws be 50
framed that no individual can net more
than $4,000 il year will probably not
be adopted. However, it is also prob
able that upper-bracket taxes will be
so stiff that no one will be able to net
a great deal more than that. This pro-
poSal is of little Importance as Il rev
enue producer-there aren't enough big
incomes to make a visible lent in the
cost of government.
I. Many ire not convinced that vol
untary War Bond sales will be AIDE
lquate. The President minated that
forced savings plan might have to be
adopted if the people don't buy more
heavily. The figures on future sales
will tell the story here. If purchases
don't rise sharply, forced savings will
be inevitable.
>. Most important of all, Il great
many experts of all economic and po-
@litiCal pcrSIaSionS, are dead certain
that Il workable tax policy will have to
hit the loWer-incOme groups far harder
than current proposals call for. As
Time says, One economists estimate
is that the farm and labor groups,
whose 1899 income was about SO,
OOO,OOO,OOO will be earning at the rate
of $4,000, 100000 by this years end.
out of This $4,000, 100000 increase
the present Federal taxes and all the
proposed tax increases would catch
only some 81, 5OO,OOO,OOO; according to
this figure, the total Federal tax bill
ON the O,OOO,OOO,OOO would be only
81, 900, 100000. Meanwhile there is not
much blood left i'm the rest of the
Iturnip; businesses and business men
will be earning So, 900, 100000 by
years end Cup only $4,000, 100000 or ~
over 1880, will pay $50 OO,OOO,OOO-
so per ccnt-tO the government"
Just how to tap these income groups
is Il very potent question 10Y Many OF
THE most influential commentators
after looking the problem over from
Ian possible points of vantage, have
come to the conclusion that the sales
tax, much as ii may be feared in som,
political circles, is the only fcasibl,
solution. COIumniStS Raymond Clappel
and Walter lippman belong To this
school. Mr.. Flapper recently wrote
Nov we get at the rich through thu
income tax. They pay far more heavily
than the poor, prOpOrtionalely
Ilhe other half of the Job is to get ii
the expanding buying power going
into the luWcr-inConc groups TIL,
IonlN practical way left to get at this
money is through sales taxes and cOm,
IpulSOry savings Mr.. Lippman wrote
"UntiI there is Il tax bill which reaches
the lower incomes, which have re
GENTLY been in the aggregate greatly
Increased, and until there is Il com
|pulSoly savings plan, the AdminiStru'
|tion ought not to pretend that it is
dealing with inilation.'
i This gives an idea of what Congress
) lis up against now. Even Il year ago d
|SaleS tax would have had about a>
Imuch chance of passing as the pro
+ |vcrbial SNOWFALL would have of sur
lViving the heat of Hades. But wal i
Ia revolutionary force, and it produces
tits up4cavals IN The legislative halls M
less than OF the field of battle. SO Il
Isalcs tax, ranging from > to D per cent
is Il definite possibility today.