Evening star., 1943-11-29

axes
Continued From First Page.

VIDE dlnerence between the DEPART
ment and the House ION a matter
so important to the present and
future welfare of this Nation"
There Is nothing in the new
budget figures in oul opinion to
warrant reducing our goal below
$l0,5O0, 100000 of additional wartime
taxes" said the Secretary.
The budget revisions do not alter
the fact. that we can pay much
higher taxes; they do not in any
degree affect our moral obligation
to meet now, all Of the costs of the
war that can be met by current
taxation; and they do not affect
In significant degree the serious in
hationary dangers that face us =. :
as long as the war shall last, and
in the postwar period.
Warns of Sacrifices.
TT is great fallacy to SUPPOSE
that we can fight history's greatest
war to save what we hold most
dear without financial sacrifice. In
evitably we shall experience much
greater financial sacrifice than we
have thus far. Taxation now, dur
ing the war, is the easiest way to
make that sacrifice"
The Secretary reiterated his warn
ing OF an inflationary threat which
he said is inherent in the esti-
mated $4,000, 100000 surplus be-
tween national income after nav
ment OF taxes and the available
supply of goods.
II those who hold this surplus
income try to spend it on consumer
goods" he said, 'the inevitable re-
suit will be black markets, ruptured
price ceilings, substantial increases
IN the cost of living, followed by
tremendous pressures for higher
wages and farm prices, which will
set in motion further forces in
the spiral of imitation"
Price Controls Cracking
up to this point, he added, spend
ing has been held down "and we
have avoided disastrous price in
creases. But we cannot expect
these controls to hold indefinitely in
the lace of a continued large sur
plus OF income over goods and
great accumulation of spendable
liquid wartime savings. Day after
day. the continuous pressure of
spending power has been cracking
our price controls a little here and a
little there and threatens to produce
a major break-through."
Terming as perhaps the most
specifically plausible, and therefore
the most insidious," the argument
OF economy in governmental spend
Ing as substitute for taxes, Secre-
tary Morgenthau declared:
I am in complete and hearty
sympathy with any measure that
can be adopted to reduce govern
mental costs. But if we are to
fight this war to speedy conclusion
we cannot relax our fighting or our
production for war. That means
that we cannot significantly relax
our spending. am not in sympa-
thy with any measures or proposals
to cut expenditures in any way that
will make our total production any,
thing less than an all-out effort"
Senate Stand Explained.
Leading Democrats on the Finance
Committee informed Secretary Nor
genthau at a luncheon last week
that the $2,14O, 900 900 House bill was
about all the Senate could be ex-
pected to pass. Added to existing
levies, that increase would swell the
total Federal revenue to about $43,-
500, ,00O, 600 over a full years opera
ton.
Support for the Treasury's plan
was given by coalition of eight
national organizations, among them
the CIO, which denounced the pend
ing bill as an imitation breeder.
They declared that heavier taxes
are necessary and that taxes on per-
sonal incomes of more than $4,000 a
year should be boosted, while the
tax rate should be hiked
from 40 to at least so per cent.
Liquor Tax Boosted.
The House, in cutting the bill, set
tied on an increase OF $154 ,80O, 900
in income taxes Qargely the result
Of integrating the Victory tax with
the regular taxi, $6l6, 900 900 more
from corporations, 1901 ZOO, 900 in
excises and $166 100000 in higher
postal rates.
The request for drastic revision"
of the House bill was submitted to
each committee member by the CIO.
the National Lawyers Guild, Ma
tional Farmers Union, Brotherhood
OF Railroad Trainmen, National As
sociation for the Advancement Of
Colored People, National Women's
Trade Union League, League of
Women Shoppers and the Consul
mers' Union.
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