Evening star., 1942-01-01
Taxpayer Faces Job
OF Trimming Budget
To Win War
Billions to Be Needed
For Biggest and Best
Army, Navy
BY Cambridge Associates.

No one now disputes the necessity
of providing billions for the biggest
and best equipped Army and Navy
that we can organize. Furthermore,
John @. Taxpayer, that much-put-
upon. suffering little man OF
the cartoons that is supposed to
represent all of us, can be expected
to pay with hardly a murmer even
though his tax bill this year is going
to be the biggest he has ever re-
ceived.
Just how much they are going to
pay-as well as how they are going
to pay its an important question,
however, to Mr.. Taxpayer and his
wife. One thing they know, that
If their income does not go up the
amount that they pay in taxes will
mean a direct reduction in the living
standards they have enjoyed or OF
the savings that they normally
would be able to put aside.
Just to see how the new taxes are
going to affect people, let's take one
family, a man and wife and one
child. He earns $50 a week. The
family income is above the national
average, but this is good family
to look in on because it is typical
Of those who are going to become
newly tax conscious next year. AT
least they should be, for in all taxes,
direct and indirect, they will pay
approximately $430 in taxes this
year.
1912 Situation Differs.
Mr.. Taxpayer, as we will call him
earned $50 a week in 1910, too. In
reporting his income on March Is
194l, however, his exemptions as
husband and a father plus his
earned income credit were sufficient
to free him from making an income
: tax payment.
That will not be the case when
he files his income tax on or before
March IS. 1912. Taking the normal
number of deductions and his prop.
er exemptions. Mr.. Taxpayer will
pay the Collector Of Internal Rev.
on his 194l income.
OF course the income tax is only
a portion of the taxes paid by this
$50-a-week family. If the others dc
not rate so many groans it Is be-
cause We don't have to make out
the bill for them and forward them
directly to the Government.
Whether Mr.. Taxpayer pays rent
or owns his own home, q part o1
what he pays for housing goes to the
town or city in which he lives. If h,
lives in q house with q monthly
rental value Of $50 this is probably
somewhere between $40 and SIS 9
month. according to his community
In this connection it Is encouraging
to note that the trend of municipa
taxes is downward rather thar
otherwise, partly because Of lighte
relief burdens, partly because the
cost of relief and other improve
ments and services have been as.
sumed by the Federal Government
in recent years.
Two Purposes Seen.
But to return to Federal taxes ant
the new levies which will, in part
defray the victory to which we art
looking forward. The new ones ant
the important increases are de
signed to do two things, one, helr
pay war costs; two, reduce con.
sumption Of luxuries and good,
which require materials needed fol
war production.
There Is . new tax on rubbe
products. excluding footwear ant
surgical, for example. Sporting
goods bear 10 per cent tax. Auto
mobile owners are expected to pa,
a S. use tax. Excise taxes hav,
doubled or nearly doubled on auto
and auto parts, mechanical re
frigerators, radios, and phono
! graphs. There is new tax on trave
fares, telephone and telegraph mes
sages, furs, jewelry and on a myrias
of other things Of significance to al
or to q part Of the Nations con
sumers.
The old taxes on cigarettes ant
gasoline remain In force and ther
kare additions to the levies on alec
holic beverages, safe deposit boxes
imported psgfunes, and playm
cards.