The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-03-16
Proposed Clio Tax Measure
Scored AS "SmOke Screen"
Professor Willford King Of New York University
Doubts Membership, General Public Real
ize Dangerous Possibilities.
To the Editor Of the Democrat:

To the Editor Of the Democrat;
Today, perhaps more than ever
before, Americans generally are
taking O lively interest In the Fed
eral income tax. As result, the
Ways and Means committee OF the
House OF Representatives is receiv.
Ing vast quantities Of free advice
on how TO draft o tax bill, When
suggestions are presented by q
closely knit and ell-financed Or
gani2ation like the 9. I, O., they
are likely 10 be listened 10 with
respect. Some congressman fear
that II Is dangerous TO oppose any
organization which claims II can
deliver Its vote en- masse, even
though II represents but o minority
OF the voters.
Principal Features
The tax program OF the CLIO has
the merit OF being very definite,
The outstanding features are as fol-
lows:
!. Exempt from the federal In.
come tax $500 for each married
couple and $500 for each dependent,
(For the typical family with two
children this means IN exemption
Of $4,000
2. Sharply increase rates for oil
brackets above $4,000.
3, Tax away oil income above $685.
900.
4. Increase taxes on corporations
from the present 409o rate 10 $50.
8. Limit profits OF large corpora
lions 10 ~ on their invested capt.
tal.
Q. Allow corporations no deduc-
tIons for depletion Of holdings OF
oil, coal, or other minerals.
Z. Drasticaily increase taxes n
gifts and estates.
9. Avoid sales taxes Of oil deScrip-
tions.
0. Repeal the Victory tax.
II this program were actually
adopted, how would II work out In
practice7
The typIcal-sIzed family having
on income OF less than $4,000 will
pay no federal income tax. The
similar family with on income OF
$4,000 would pay about Sil6. In 1913
families having incomes between
$4,000 and 5000 will probably nun.
Der something less than two mill Hons,
On the basis proposed by the ClC,
their total tax contribution would
DO In the neighborhood OF $4,000.
900. This sum might possibly pay
the cost Of the war for q whole day.
YCt, according 10 recent estimate
made by the United States Bureau
OF Labor Statistics families (nelud-
ing independent single persons)
having money incomes under $4,000
comprise 81 per cent OF oil families
In the nation. Virtually, therefore.
tho Go tax plan almost exempts
from federal taxation four out OF
every five persons engaged IN earn
Ing money.
Since, from early youth, most Of
US have been taught TO dread taxes
and TO plan how 10 avoid them. II
Is only natural that. at first thought,
the Go program will appeal 10 four
out OF hve adults. However. most
AMERICANS Hfe VfuctGhl hi'd luh
minded, hence they will be willing
10 consider possible defects In the
proposed schedule.
$500 Bracket
Obviously, one question TO be con.
SIdercd IL the possibility OF securing
from that 10 per cent Of recipients
having incomes above $4,000 revenue
suiflcient 10 meet governmental 70.
quirements. The last definite infor'
nation bearing on this point u
furnished by the preliminary report
OF the Federal Iflcome-Tax Unit for
the year 1910. On the basis Of this
report, all persons having incomes
above 5000 had total net income
OF around $4,000, 100000. BY 1914?
this total may have grown TO e2l.-
900, 100000. Between 1870 and 1912
the wage total for the nation In
creased not $1,000 900, 600 but prob
ably not less than $40 600 900 900.
The Go proposes u leave this latter
increase virtually untsxed.
Al faFaeaFlk. the QOVefnment Is acs