Evening star., 1944-11-22

It did not like it last time, but 1t
made 1t then and it will make 1t
again. For there is but one alterna-
tive-to wit, the imposition of
greatly increased taxes on the very
large low income groups, either
through general sales tax or
heavier income taxes, or both.
The only way to decrease borrow
ing is to increase taxes. To increase
taxes on the masses of the people
lust ahead OF an election takes
more courage than any Congress yet
has shown, and when the debt CELL
ing was last raised, six months ago.
the question of increasing taxes was
not seriously considered.
The chances are that not much
more consideration will be given this
time, though the need is greater and
the fiscal situation more critical.
But it is unreasonable to expect
Congress to raise taxes by itself
without White House support or
Executive leadership. And 1t will
get neither.
On the contrary, both Mr.. Roose-
welt and Mr.. Morgenthau are ex-
pected to continue their opposition
to the sales tax, and their attitude
is a reflection of the labor Hobbies,
particularly the CIO.
Congress Action Unlikely
Under such circumstances, fur
ther general taxa ton will not be i'm
posed by Congress. For one thing,
it would have to act against the
White House weight instead OF with
it; second. it is an unpopular thing
to do under any circumstances, and
every Congress is reluctant to tax
the low-income voters.
Soaking the rich is one thing. but
taxing the workers" is another.
The trouble now is that the rich
are taxed clear to the saturation
point. No more money can be OBJ
tanned that way-or, anyhow, so lit
tie that it would not count lEuch.
Yet, the great bulk of the national
income today is in the hands OF the
workers and a large part OF 1t is
exempt from taxation.
Almost everybody in public Office
fiinches from tackling this situa ton
OF course, every demagogue in both
parties fiercely assails any effort to
be practical about it, and the labor
lobbyists howl murder at the mere
suggestion of taxing anyone save
the employer class.
Also, it is true that the public,
generally, is more or less expectant
of q lessening of the tax burden in
the next year. How people get that
way with the war still stretching in
definitely ahead and our gigantic
debt growing by leaps and bounds Is
not easy to say. But that is the way
q lot of them are and that makes 1t
more certain that Congress, with
no presidential encouragement to
impose more taxes, is not going to
do it.
Accordingly, the limit will be
raised with few dissenting voices
and raised again when that limit is
reached. That process will continue
so long as the war continues. When
the war is over perhaps more real
istic approach to this vital problem
will be possible. Tt will have 10 be
II chaos is to be averted.
At the moment practically all of
our statesmen sheer away from the
facts They hate to face them be-
cause they might have to do some
thing intensely disagreeable. Mean
while it is not surprising that
thoughtful men sre asking whether
the United States can carry a 300
billion-dollar deht-and il it can,
what effect it will have upon our
economy of the future. On this
subject there are many views and
little agreement.
Six Billion Interest.
Approximately six billion dollars
annual interest is involved in 800
oillion-do debt. With civilian
expenditures up; the cost of g. vastly
larger peacetime Army and Navy
than we ever had before; with public
works, compensation for returned
war veterans and an unprecedented
pension load all scheduled as cer-
tain, this six billion interest will put
the fixed costs of government after
the war far higher than was ever
dreamed of by anybody.
To swing this debt, to pay this in
terest, to keep the Government run
ming and its f7na ncia1 str,IctI1re from
toppling is a task that calls for the
best brains, character and courage
in the country.
Neither it's magnitude nor it's i'm
norta nce ran he eYaooarotad vat