Evening star., 1943-10-06

1--WE VI dllIIl VI ' -N
the Government would collaborate
in producing a tax program which,
while drastic in its effect on the
pocketbook, would, nevertheless,
command public confidence.
But this is not the case. The
Treasury makes its own studies and
keeps its own figures, works them
UP in estimates which are held for
release at given time and then
a program is announced which on
its face is unSClentific and. there
fore. has the effect of producing
alarm, if not confusion, in the eco
nomic world.
The Congress, which. under the
Constitution, must pass the tax laws
and indeed the House OF Repre-
sentativeS which must originate
them-is singularly devoid of the
tools needed to frame a COmpre-
hensive tax law. The Joint Com
mittee on Internal Revenue which
Congress established some years
ago has a small staff Of experts and
while the situation today is far bet
ter than it has been in the past it
is still far from satisfactory.
Treasury Has Own System.
The congressional experts are
looked upon by the Treasury off,
clals as an alien group-as usurpers
in the field of tax law drafting
Difficulties are encountered by the
congressional staff in getting certain
data from the Treasury and alto
gether many members Of Congress
have gradually begun to lose con-
fidenCe in the Treasury interpreta-
tions of the actual figures. This is
a most unfortunate state of affairs.
Secretary Morgenthau is. Of
course, an excellent manager Of the
Treasury Department, but until
quite recently he has had a staff
which followed the original New
Deal practice Of soaking the thrifty
and the successful. Mr.. Morgen-
thau has been delegating to his
subordlnates the responsibility Of
dealing with Congress.
Taxation should not be a political
football and in time OF war il is most
regrettable that politics in either
the legislative or executive branch
Of the Government should inter-
fere with the levylns Of the highest
taxes commensurate with the ca
pacity Of business and individuals
to pay.
Higher Taxes Suggested.
1t would be far better for tax rates
to be raised to higher point and
to collect as much money as is
possible by taxes than to let the
country get the impression that
continued borrowing must be re-
sorted to in postwar years to meet
the deficits that will keep on ac-
cumulating if tax yields are not
sufficient to balance the budget.
The total volume of payments to
the public today is so high that
unquestionably much more can be
drained off for tax revenues. No
tax rate is ever accepted whole
heartedly by any group or class
and taxes are always unpopular no
matter by whom they are proposed
Under such circumstances it would
seem TO be wise all around for the
Treasury and the Congress to COL
laborate before announcing tax pro-
grams Of any kind. The President
now has in his inner cabinet MesSrs.
Vinson and Byrnes who have had
a good deal Of experience in Con-
gress in writing revenue bills. Ger
tainlv bill which is carefully
worked out in advance, with the CO.
operation of Treasury officials, Re-
publicans and Democrats, stands
far better chance Of passage than
one which is offered by an eXecu-
tive department alone.
The Treasury has made a serious
mistake in tactics in promulgating
its own program and as con-
quence the country will not take
the Treasury proposals seriously,
but will wait for the congressional
side of the matter to be developed.
Meanwhile, time is Of the essence
and the most useful service that
could be rendered would be for at