Detroit evening times. (Detroit, Mich) 1921-1958, 1944-07-27
REHIND
The NEWS
BY Paul
MaIIon

WASHlNGION' July -'rpe
w hind this sudden 'front.'
paging of new tax plans TWIN
Cities VS.. Ruml, ct all hes a re-
belllon of the individual bust
ness man against Washington
taNmaking.
The average taxpayer IN DuSl-
ness or outside knows nothing
about this. the most important
of all issues of government. The
business man hires experts 10
work out what ne must pay.
The average citizen Just finds
out how IL hits him on payment
day, and measures justice by
that amount.
AS a result more people are
angry about taxes in this coun-
try than anything else, includ-
ing Mr.. Roosevelt himself.
The way taxes are made en-
courages this popular sense OF
Injustice. They evolve from
plans presented 10 Congress by
labor Congress of Industrial
Organizations, American Feder-
alton of Labor, etc.), on the
one hand and the United States
Chamber of Commerce and Ma
tional Association Of Manutac-
turers on the other, from which
Congress generally cho doses
IDEAS. mainly and naturally for
political effect.
This makes for groove think
inc. One groove we are IN, Tor
instance, is the labor notion
that the corporation is wicked
octopus, against which 1t must
promote economic antagonlsm.
Labor. therefore, always ad-
vocates higher and higher taxes
on corporations, course which
now, after years Of success. has
brought the corporation profits
10 a point where there is
question OF whether the capital
istic system can survive IN
postwar.
AFL came out with a PAM
"a phlet last week trying 10
show corporation profits had in
creased more than individual
income from the war, and the
only way they could do II was
by presenting the corporation
profits before taxes taxes
are the biggest factor against
profits.
But. above all union labor
gets all its income from corpor-
alton profits, and therefore YOU
would think its wlScst course
would be against high taxes so
the corporations would have
more left for wages.
The Chamber Of Commerce
and NAM have similar grooves
on their side. at a time when
new ideas and straight, impair
tial thinking based on common
Justice, is necessary If the coun-
try Is to be saved
Well. at any rate, these bust
ness men AT luncheon one day
compared notes and found their
congressman had written them
the usual form letters asking If
they had any tax suggestions
for postwar. They usually get
their tax thoughts from the
c. of c. or NAM. but this time
they decided they would try 10
make a real tax plan of their
own
The initial cost was about
$4,000 Ot may have doubled
since them for hiring some eX-
perts and sending out the 10000
brochures these experts pre-
pared Most of the workers,
however. were loaned without
cost by the business organiza-
tionS involved
The brochures had some new
ideas. not Stcreotyped 10 the
business formulas. In fact, ba-
Sically the Twin Cities plan is
TO reduce taxes on incomes but
keep them at 80 per cent on
corporations eliminating only
the war excess profits taxi
II would cut individual rates
about Is per cent on An aver
age. and still more aid indlvidu-
ais by allowing a 40 per cent
exemption on dividends re-
ceived.
THIS last is a novel, but Just
Il idea. because the corpora
ton already has paid 40 per
cent in taxes on income which
belongs 10 the taxpayer. The
present system is double taxa
ton on the same dollar.
Some foolish notions about
sales tax are also dispelled, as
il is evident the rich man. buy
inc more. would pay more tax
than the poor man. and further
more we have sales tax Of
terrific proportions on the poor
man now lciCarcts and whisky,
10 mention two itemS).
Details and figures of the re-
port may arouse controversy
whether $4,000. 900 900 of ma
tonal postwar income will be
enough. whether the postwar
budget will not he more than
$4,000. 100000 and therefore
require more taXeS). but at
least the controversy will he on
now lines and not IN the grooves
II has occupied for this entire
generation
Indeed BeardSley Ruml. the