The Daily Alaska empire., 1944-02-28
Willkie At His Best
Cwashington Post

| Washington Post
 | There is not a chance in a million that Wendell Willkes proposal for tax measure that would yield an additional 16 billion dollars will be approved by Congress Just the same Mir Wikie has presented one of the most souRdly reasoned arguments for drastic tax increases that has been offered to the public to date. He has also made valuable con tribution to better understanding of the nature and implications of fiscal policy
 We believe with Mir Wlkie that the political experts are wrong in concluding that the American people would not stand for tough tax program they fully understood the need for greater sacri- fces, they would respond to demands for more. h. stead much of current propaganda has been directed toward proving that borrowing is safe and satisfactory method of financing the provided people invest bona fide savings in war bonds. For
 the present that is undoubtedly true but Mir. Willkie is looking beyond the present to the future when the people will be sadded with supendous legacy of war debt The less collect during the war from taxes, the greater that debt is going to be and the heavier
 the debt charges that taxpayers of the future will nave to support
 Mir Willkie does not waste time with spacious arguments the effect that internally held debt is not national liability becauce it is owed by the people to themselves The simple fact is that some of the people will hold large part of the debt claims after the war, and scmenotaby soldiers and sailors who have not been earning wages-will 2 comparatively small proportion of outstanding issues But when these soldiers and sailors return to civilian life. they well as other Americans will have to shoulder the burden of paying the interest on a colossal debt That debt will be much greater than it need have been if the people back home had made financial sacrifices remotely comparable to those exacted of fighting men These fighting men, more over, will not be the fortunate bondholders with interest payments from wartime investments offset heavy tax demands If this aspect of war borrowing could be brought home to the people in vigorous lan guage. Mir Wilkies tax program wuold cease to seem unrealistc. It would come, on the contrary, to be regarded realistic in the that recognizes the realities Of our situation.
 In addition to exploding the myth of Che harIn- lessness of 6 domestically owned debt MT Wikie has made clear the importance of fiscal policy instrumentay for enabling to attain cur economic and social objectives when the is He has faced frankly the prospect of postwar Federal budget of huge proportions compared to preWar standards Tt is extremely improbable he says that in lifetime shall Federal budget under 20 billion dollars measured in 1942 prices |" Starting from that premise, he considers how are meet budget demands Of such size without imposing peacetime taxes so high to destroy individual incentive to expand production and to take the risks inseparabe from such expansion
 Tn that connection MT. Willke emphasizes the fact that the fiscal policy necessary in wartime is almost the exact opposite of that appropriate for peacetime Tn the latter case, the aim is to keep tax rates low as possible, in order to free maximum amount of private resources for productive employ ment With that generalization MT. Willkie puts the public again in his debt by offering some sound specific suggestion for reform of the system after the that would incite initiative and stimulate revival of private enterprise by arousng once more in the hope of reward; not unlimited and con- sequenty ruthless reward but fair sufficient reward that will drive ahead"
 Here is thoughtful presentaton-the kind of for ward-ooking analysis that the country has right to expect of it's public and gets all too seldom. It stands out uniquely in the state of demagogy to which the people have recently been subjected