Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1946-03-22
Political
Action
BY
Clayton
Rusch
Chairman
Of the

Political Action Committee
In this column I want to
clarity the position of the
CIO-PAC relative to the city
payroll tax.
1t can be said at the outset
that taxes are necessary. A
properly functioning city must
have adequate taxes in order
TO provide the citizens with
essential public facilities and
services.
With the argument that in
come is the fairest basis of de-
termining ability to pay such
taxes, the CIO-PAC takes no
exception. The point at issue
is whether an income tax
which provides no exemptions
regardless of the amount Of
income can be considered a
fair tax.
Several times during hear
ings when the enactment of
the present payroll tax was
being considered, the CIO-
PAC very clearly and simply
presented its position and our
objection to the tax as it now
stands.
We of the CIO-PAC accept
the proposition that all taxes
must be based on the ability
to pay. We contend that un-
less a payroll tax provides ex-
emptions for people who earn
less than certain amount
also figuring dependents, it is
not based on the ability to
pay.
NO EXEMPTION
The present income tax plan
provides no exemptions what
ever for the low-i n o m
groups. This point alone would
be sufficient to warrant vigor-
Gus opposition on the part of
the CIO-PAC. In addition, the
ordinance contains the famous
or infamous Section IS, which
provides that should any part
of the ordinance be declared
invalid the rest is still en-
forceable. This clearly means
that in the event that certain
corporations find loop holes in
the law to evade payment that
the workers will still pay
through the nose.
In answer to our demand
for exemptions the point was
raised that exempting people
with in com e S of less than
$2500 per year would leave
the city with insufficient funds
to pay off the bonded debt
and maintain a well-ordered
city to say nothing of civic
improvements.
To overcome that difficulty
it would be necessary merely
to exempt all incomes of less
than $2500 per year, to assess
a tax of one per cent on in
comes b e we en- S2500 and
$4,000 per year, and then in
crease the percentage on in
comes above $4,000 yearly to
the amount necessary to meet
the need.
Despite a clear presentation
of the views of the CIO-PAC
on the matter, City Council
passed the tax ordinance with
no provisions for exemption.
OUR DUTY
AS the direct representation
of $4,000 workers it became
not only our duty but our OBJ
legation to give the people a
chance to vote on whether or
not they want to have a one
per cent payroll tax without
exemptions.
We sincerely believe that
this tax should be defeated at
the polls.
1t is also our hope hence
forth that when we make rea-
sonable proposals to Council
on pending legislation, it will
not be necessary to carry the
issue to the people in order to
see that legislation they are
in disagreement with is not
permanently passed. Council
should proUide the taxpayers
the right to Uote on such mat
terS.
We believe that the citizens.
of Toledo realize the need for
adequate taxes, but we also
believe that the people want
these taxes based on ability to
pay.
Defe al of this ordinance
will give Council an opportu-
nifty to enact a fairer tax based
on ability to pay. If this tax
is defeated, it is the obliga-
ton of Council to bear in mind
the feeling of the people and
formulate a system of city fl
nancing which will not place
the bulk of the burden on
those least able to pay.
There is no need to have an
undermanned or inefficiently
operated city merely because