The midland journal., 1945-04-13
LOOKING
AHEAD
" GEORGE S. BENSON
\ presidfAf--Hardiag college
SfarE Arkaasas
BOBBY Trap

In public speeches, in published
articles and in This column since
early January, 1914, have been
calling attention to the ''booby
trap" in Americas wartime tax
laws. Now, as our fighting men
press harder upon Berlin, the in
dustries that support them are
drawn closer to TIE trap. Most war
contracts will be voided on V-Day
but taxes and payrolls must still
be met
Corporations pay income tax each
year on the previous years earn
ings, just as personal income taxes
were paid prior to 1914. In 1916,
firms will be taxed on 1945s earn
ings. But if war ends Terminating
war contracts) this year, 1946 will
be the year of change-back, of
costly sales and few. Problem: How
to hire more men and pay 1945's
taxes with small earnings or none?
Apple POlishing?
Any time a voice is raised in the.
interest of American business, any
time writer suggests that cor
poration tax laws need revision,
somebody accuses him of apple-pol-
ishing or grinding the axe of big
business. But right is still right.
Prosperity in America depends on
full employment; full employment
depends on business expansion, and
business expansion depends on wise
tax provisions.
Firms that have used their war;
year profits expanding production
for victory are not to be blamed.
They are solvent. They will have
adequate working capital due them
under the present law after their
Refund Bonds are cashable and
after their Carry-back credits on ex-
cess profits taxes are allowed. But
when will this be? AS the law is
written now, years will pass before
the money comes.
Keep Jobs Alive.
After a man has starved to
death, food does him no good.
Neither will money due a firm help
it's employees after bankruptcy.
What war-production firms need is
money when they need it; to hire
men, to buy machinery for peace
time Swork, to save useful enter
prises and avoid wholesale un-
employment in their communities.
Laborers and farmers and small
town merchants have the most at
stake.
William L. Hutcheson, president of
the United Brotherhood of Carpen-
ters & .Joiners, surely was look
ing through the lenses of Labor
when he wrote Robert L. Doughton,
chairman of the Ways & Means
Committee of the House of Repre-
sentatives, urging the passage of
amendments to make Refund Bonds
and Carry-back funds promptly
available to industry at plant re-
conversion time.
Labor Leader Says
Analysis of large number of
companies shows that they have
had to use their tax reserves for
current operations, so that when war
ends they . can not reconvert to
peacetime operations and employ
ment of men. :. We strongly urge
that these provisions be amended
in a manner which your Commit
tee believes will make refunds
available Immediately at the time
war production of these companies
has stopped"
Mr.. Hutcheson's letter reached
Mr.. Doughton's desk only shortly
ahead of one like it from William
Green, president of A. F. of L. Are
these labor leaders apple-polish-
ers? No! They are far-sighted think
ers serving the interests of working
men, and they know how. They are
not recommending Doodle for busi-
ness men. They are intelligently
promoting postwar jobs and pros