Imperial Valley press., 1943-05-27
Editorials and Comment
THE LOAD WILL BECOME
HEAVIER ON ALL PEOPLE

The real burden of paying for this var
lies Immediately ahead.
As il becomes more and more apparent,
the people in turn will pay more and
more attention to what this war Is cost
ing us. And unless we miss our guess by
a wide margin, there will be increased
concern over possible waste and lneffl-
cient spending. and lavish military eX-
penditures where simple installations
might have satisfied the purpose just as
well.
When Mr.. Morgenthau, secretary of
the treasury, announced that we must
nave as billion MORE dollars to meet
war demands this year. he was, in effect,
gently saying to the people. Get ready,
more specific news soon will follow.
He explains the situation in about >2iS
manner:
During 1943, our war effort will cost
100 BILLION dollars.
OF that amount. some so billion will be
raised by current taxation.
Another seven billion was raised this
year in war bonds, before the big recent
second War loan drive; that brought the
total to 81 billions. The recent drive
brought Is 12 billions in bond sales,
which boosted the total income to slight
~ more than 55 billions. Since that is
as billions short of what we will need
this year, Mr.. Morgenthau seeks that 45
billions and looks calculatingly at the
peoples income, expenditures, and po-
tential ability to pay taxes or buy bonds,
We have a decision to make. 1t is, how
much of this war should be on a cash
down basis, and how much should be on
a credit basis to be paid off in future
years What we decide Cor permit Mr..
Morgenthau and Congress to decide) will
determine our taxes.
Suppose. for example we think we
should pay down only 80 per cent cash,
and finance the other 70 per cent over
the years to come In that case. we are
deciding that our taxes should be only
80 billions (about what they are expect
ed TO aggregate on the present basls).
And also in that case we must see that
20 billions in bonds are purchased dur
ing the year, because Uncle Sam can only
borrow money directly or indirectly from
the people, or the peoples investment
concerns such as banks, insurance COM
panies and the like.
One way or the other. We must Law out
100 billion dollars; either as outright
payment (taXeS) or as loans to the gov
ernment (bonds).
We must decide how much we should
ho taxed and how much we should be
allowed to keep as our own and invest
in bonds.
In reaching our conclusions, we have
much argument botn for and against IN
creasng the tax load.
In favor of increasing taxes are sever
al arguments. Chief is that the war dol
lars spent are going right back into cir
cuation in the form of payrolls and prof
its. Everybody is earning money whereas
in normal poacetimes, millions earn lit
tie or nothing Now that all are earning,
the argument is that now is the time to
tax heaviest.
On the other hand seven-eighths of
all income c12s to workers under the
$4,000 a year level. If we need ten or
twenty or thirty billions more in taxes
seven-eighths of it must come from the
rank and file of people A soakthe-rich
tax plan won't work ANYMORE, because
the rich are so comparatively unimport-
ant.
That is the problem, and that compels
decision we must all make.
AS undoubtedly some of the needed as
billions will be in the form of increased
taxes, the people are going to think more
and noore about whether this war could