Evening star., 1942-04-27
Text of Roosevelt Message to Congress
President Fovo Maximum Annual incomes Voluntary
Wor Bond Buying Asks for Definition 100 Pct Excess Profits


stabilize the remuneration re-
ceived by individuals for their
work.
4. To keep the cost of living
from sptrsling upward, we must
stabilize the prices received by
growers for the products OF their
lands.
5. To keep the cost of living
from spiraling upward. We must
encourage all citizens to con-
tribute to the cost of winning
this war by purchasing War
Bonds with their earnings In
stead Of using those earnings
TO buy articles which are not
essential.
8. To keep the cost OF living
from spiraling upward, we must
ration all essential commodities
OF which there is a scarcity, so
mat they may be distributed
iairiy among consumers and not
merely In accordance with finan-
cial ability to pay high prices for
them.
7. To keep the cost Of living
from spiraling upward. we must
discourage credit and installment
buying, and encourage the pay-
Ing on of debts, mortgages. and
other obligations: for this pro-
notes savings. retards. excessive
buying and adds 10 the amount
available to the creditors for the
purchase OF War bonds.
Congress Urged too Define,
Tax Away Excess Profits.
l know that you will appreciate
tnat these seven principal points,
each and every one Of them. will
contribute In substantial fashion
to the great objective of keeping
the cost Of living down.
1t Is my best judgment that
only two of these points REQUIRE
legislation at the present time,
for the very good reason that the
Congress has already passed laws
with respect TO the others which
seem adequate to meet the ma
Giohai poncy enuncfAted
l assure the Congress that if
the required objectives are not at
tained. and II the cost of living
should continue to rise substan-
TALLY, shall so advise the Con-
gress, and shall ask for any addi-
tional legislation which may be
necessary.
In the first item, legislation is
necessary, and the subject is now
under consideration in the House
OF Representatives. It's purpose
is to keep excess profits down and,
at the same time, raise further
large sums for the financing of
the war.
On this subject, believe that
the objective can be attained
through tax processes. We are
now spending. solely for war pur-
poses. the sum Of about $100, ,000.-
600 every day OF the week. But
before this year is over that rate
of expenditure will be doubled.
This means that sum equal to
more than half of the entire ma
tional income will be spent in
the war effort. Almost the whole
Of these billions Is being and will
be spent within the United States
itself.
Profltsmsynst be taxedK n these
iutmose bnsistent col n
tinued production. This means
all business profits-not only in
making munitions, but in making
or selling: Thing els( md n
the proposes new taxs3 Nv weA
seek to take by taxation all un-
due or excess profits. 1t is in
cumbent upon the Congress to
define undue or excess profits;
and anything in excess Of that
specific figure should 60 to the
Government.
Annual Income Of 81, 100
Is Called SufYicient.
One Of our difficulties is to
write q law in which some clever
people will not find loopholes, or
in which some business will not
be equitably included. I have
suggested to the chairman of the
Committee on Ways and Means
in the House of Representatives
that some blanket clause could
well cover, by special tax, all
profits of any kind of business
which exceed the. expressed
definition of the legal profit
figure.
At the same time, while the
number of individual Americans
affected is small, discrepancies
between low personal incomes
and very high personal incomes
should be lessened; and I there
fore believe that in time of this
grave national danger, when all
excess income should 60 to win
the war, no American citizen
ought to have q net income, after
he has paid his taxes, of more
than $25, 900 a year. 1t Is in
defensible that those who enjoy
large incomes from State and
local securities should be immune
from taxation while we are at
war. Interest on such securities
should be subject at least to sur
taxes.
l earnestly hope that the Con-
gress will pass q new tax bill at
the earliest moment possible.
Such action is imperative In the
comprehensive all-out effort to
keep the cost of living down
and time is of the essence.
The second item, relating to
price control is, with the excep-
ton OF farm prices, adequately
covered by existing law, and I
have issued instructions to put
this into effect Immediately. 1t
Is our effort to be fair In all
phases Of price control: and
II our future experience reveals
inequality or unfairness, cor
rections will. of course, be made.
In respect to the third item,
seeking to stabilize remuneration
for work. legislation is not re-
quired under present circum-
stances, / believe that stahiliz