The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-07-24

eminent OF the United States owns
! 455,l71,l23 acres, that is, q per
cent of the land of this country.
That means literally that nearly "a
quarter of all the land Is removed
| from private ownership, and from
the taxing power OF states and
municipalities. In some states, the
percentage owned by the federal
government Is startling, as, for
instance: California, &c per cent;
Colorado. 35 per cent; Idaho, 64
, per cent; Montana, 50 per cen:
Nevada, 81 per cent; New Mexico.
A per cent; Oregon, 90 per cent;
Washington, 35 per cent; Wyom'
ing, 81 per cent. Some of this
land may be leased and rented out,
but none of II is privately owned.
The states in which so large an
area is held by the federal govern
ment became more like territories
than states by the nature of their
land ownership. This is achieving
Socialism by the process of land
ownership.
Another method for socializing
the United States is the more sub
tile and sinister process OF taxa
ton. AS our tax laws stand today,
insufficient funds are left over, az
ter costs of living and taxes are
deducted as a reservoir for invest
ment in .privately-owned means OF
production and distribution. Moro
and more, American industry is be-
ing operated on loans from the
government The RFC, which was
created to tide over private enter
prise during the depression years,
is, through its numerous agencies
and government-owned corpora
tons, becoming the veritable own
err, through loans, or so large a
share of American industry that 1t
represents an agency for social
cation. When the war Is over
and American free enterprise goes
into the market for new money, 1t
will find that taxes have reduced
the capacity for individual invest
ment in private enterprise and that
instead of venture capital, all that
will be available is government
capital raised by taxes.
A truly realistic and invaluable
study OF the problem of post war
taxes" has been made by group
of Minnesota business men organic
ed into the Twin Cities Research
Bureau, Inc. 332 Cedar st. st. Paul
I, MINI. suggest that by the
election year 1913 this subject VIII
be the basic problem facing the
American people. The twin cities
plan states THE thesis OF this
study is that relatively heavy cor
porate income tax rates are not as
harmful TO the private enterprise
system as are heavy individual in
come tax rates, for the reason that
the latter shut off at the source
all possibility Of venturing OF capi-
tai by individuals"
The startling contribution OF
these business men Is that they pro-
pose increased and heavier taxes OF
their businesses and lighter taxes
for their investors and customers.
icy recognize the irrefutable fact
that the cost of government will
not decrease appreciably. In fact,
the cost OF servicing the debt, vet
eran expenditures, ETC., may even
increase the cost OF government.
But they want to save the private
enterprise system and to make
venture capital available to Ameri
can industry that we may. as
nation, continue our economic pro-
gress. The report says:
ITO a large extent, venture capl'
tai comes from the individual with
a surplus. Obviously 1t is not re-
stricted to the wealthy; 1t is in the
pockets OF practically everyone.
However, this capital in small
amounts is relatively impotent..
To-day, a stakeholder in the
$4,000 to $4,000 income bracket,
not considering the victory tax and
corporate excess profits tax, real
ICES after taxes 2.77 90 on his new
investment; in the 100000 TO Sl5o'-
900 bracket. SO 90; and In tho
5000 900 and over bracket. .5O4 90.
There Is no incentive to invest
ment in such a return even II one
has the money and few have any
money left over for investments.
In fact. the twin cities plan says:
q. AS the individuals ability to
take these risks improves, the num-
Der Of ventures that could possibly
return him any significant earnings
becomes more and more limited.
Therefore. the source OF venture