Evening star., 1947-03-24
Leveling Of Incomes
Destroys initiative
High Tax on Professional Glass
Seen Aiding Communists

High Tax on Professional Glass
Seen Aiding Communists
BY DaDid Laurence
Few people would avow themselves
as having the slightest sympathy with
the Communists, yet there are many
well-meaning Americans who have been
trying to bring about the destruction
of individual incentive which is the basic
purpose of the Communistic philosophy.
Thus, the Left -Wingers have been try
ing for several years now, beginning
under the New Deal, to bring about q
leveling of incomes, but they did not
succeed in Furnishing persons of higher
income until World War II furnished
an opportunity through the argument
about the necessity for war sacrifice.
Now, when the war is over, the Left
Wingers, led by the CIO, are trying to
prevent persons of ability and skill from
earning higher incomes Much of the
opposition to proposed blanket reduc-
tion of taxes is coming from the New
Dealers in the Democratic Party who
are allied with the CIO.
Few observers realize that the high
cost of manufactured products today is
due in part to the high overhead which
most businesses must maintain in order
to keep able executives in their employ.
The trend away from the large or even
small business and in favor of individual
proprietorships and service activities is
very pronounced.
Comparison Of Taxes.
Thus, a worker who has net income
Of $2500 year pays today $285 in taxes
If he is married and without dependents.
BY comparison, in 1899 he paid no tax
at all.
A person who earned 5000 in 1899
paid only $50 in taxes. Now he has to
pay more than Is per cent of his in
come and has s4,2O2 left after paying
taxes.
A person who paid only $415 In taxes
in 1899 out of $4,000 income, paid
s2,185 in 1916, leaving him only $7,s1b.
A person who paid 1924 in taxes in
1899 on a $4,000 income found in 1916
that his receipts after paying taxes
were $10953. Thus he really was forced
down from consideration of himself rs
in the $4,000 bracket nearer to the
$4,000 class where he had been before
his promotion.
Many a man who considered himself
a success" when he reached the 1000
class had $22511 left after paying taxes
in 1899. In 1916 he discovered he was
not in the $25 900 class at all, but had
only $15,918 after paying ss,082 to the
Government.
The American economic system, which
calls for the greatest amount Of competi-
ton between individuals and for train
ing and education and long years of
hard work before promotions can bring
a man to the 1000 or SIS, 900 or $25, 900
bracket, cannot be built up or its achieve
ments maintained when the ablest and
most alert citizens are penalized for
success.
Professional Fees Raised.
1t Is a double squeeze which manage
ment men and professional men, includ-
ing lawyers, doctors, dentists etc., face
nowadays. Not only did they take cut
during war years, but now their income
dollar will not buy what 1t did in 1889.
They must strain to get higher and
higher gross income in order to be even
with the place they were before. This
brings a trend toward raising ones
charges or fees in self-defense, and the
general public pays a higher bill for
everything Otherwise, it means real
hardship to the professional man or
woman.
The people in the management and
professional groups find that not only
are charges for household necessities
going up but tuition to educate their
children is higher and everything else
needed to raise family bears just as
heavily on them as on the worker with
the $4,000 income.
To suffer a cut in income during the
war when patriotism called for sacri-
flee Is one thing. To see in Congress
demagogues arguing that people In the
management and professional class
should not have tax relief now that the
war is over is to observe the Commu-
nistic infection working its way into the
national legislature.
Fortunately, the Republican Party
seems to have much fewer demagogues
in it's ranks, so the hope of America lies
in supporting the courageous Repubi-
cans who are trying to keep America
on a competitive basis where skill and
ingenuity are rewarded and where every
body can hope for larger salary some
day instead of being condemned to low
morale.
1t is the what's the use?" and I'VE are
working for the Government anyway"
attitudes which break down initiative
and help the Communists to force the
chaotic conditions that give birth to
state socialism and finally to Com
munism.
Reproduction Rights Reserved
Progress in Jupun
From the Montreal Star