Milford chronicle., 1947-03-14

FRIDAY, MARCH ID, 1947
1T is ONE OF THE IRONIES of our
complex industrial civilization that James
D. Moonev, who doesn't have to worry about
buving car, has to tell the millions OF car
purchasers how much they pay in taxes when
they buy one.
AS president of Willys-Overland Motors,
Mr.. Mooney gets his car from his own as,
sembly line, yet he takes time out IN signed
article in the current issue OF Golfers week
ly to abhor the hidden taxes we pay IN buy
ing a car.
We're going to delay telling just how
much these taxes amount to-merey to take
time to retell few of the things Mr.. Mooney
shouts about
One grippe is against the lack of economy
in our Federal housekeeping. HE points
out that the civilian employees of the Gov
ernment have increased fourfod IN ii years
and the taxes paid by the average American
have Jumped from S25 to $500 yearly
But Mr. MONEYS gripe is against our
high tax rate-a rate which he claims has
"over-priced the tax market" What he
means is this: High taxes, such as we pay
on cars, up the prices of consumer goods to
where they discourage purchases, cut the
volume of production and create unemploy-
ment.
He calls for reduction of taxes to bring
about a reduction in retail prices and to stlm-
uate purchases, production and employment.
eff the 38 per cent tax on corporate incomes
were reduced to 20 per cent" he asserts, the
Government would actually get more money
through the sale of more products.
This contention is not devoid OF logic.
Congress should certainly explore the sub
ject and find out how we can pay the revenue
needed in the least painful way.
y Now, if you're not disturbed by your tax
burden, ponder over the amount of tax you
pay when you buy car. Mooney points out
that there are 206 taxes on parts used IN
building the engine the body and the chassis.
On $1,000 car, these taxes total $500.
Take it away, Congress.
SSAS&
THE ANNUAL REPORT of the Inter-
state Commerce Commission was recently
published. And this year, as it has done for
number of years past, the 1CC again urged
that Congress pass legislation which will au-
thOrize the railroads to act jointly, under the
supervision of the Commission, to establish
rates.
Last session of Congress the Bulwinkle
bill was introduced for this purpose, was fa-
voraby reported by the Senate Committee
on Interstate Commerce, but was not brought
to vote This session the measure urged by
Cno 1CO is kIOWu DIS Cllo To0u Ull IL pdIdl-
lelS the Bulwinke bill in all important par
ticulars And it has been given an amazing
unanimity of informed support Shipping
groups, farm organizations, spOkesmen for
basic industry, state regulatory commission
ers, the heads of the ICC and the Office of
Defense Transportation-all have urged pas
sage of the bill at the earliest possible time
in order to prevent the collapse of workable
lOng-established rate-making system and the
chaos that would follow.
There is nothing in the Reed bill that
would make possible monopolstic practices
by railroads. To quote the New York Times
"It simply provides that the antitrust law.
shall not be construed as fOrbidding agree
ment between carriers if the Commission
finds that they do not unduly restrain compe
tition and are consistent with the nationa
transportation policy In all cases, the ICC
representing the public, would have the de
Gliding voice.
1t is urgent that favorable action be takel
on the Reed bill without undue delay. If
does not pass, the farmers and other pro
ducers of this country, to say nothing of tn
railroads, will find themselves in an impos
sible position. Few proposed laws are SO in
portant to the national welfare.
NSo&>
PRESIDENT TRUMAN proposed $37
5O0,000,O0O budget. The Republican leader
in Congress have been working on the theor
that they can whittle down 209o reductio
in personal income taxes and a slash MOI
than $5,O0O 100000 out of the President
proposals. 1t might be done!
The Republicans have convinced then
selves that if they are to win the 1948 ele
tion that they have got to ease up the pre-
sure on taxation. They have lot of way
for doing it, and one way is to slash the Fe,
eral pay-roll-perhaps a cut of one-third Al
other proposal is $1,OOO,OOO,OOO reductic
in public works
Lest We forget! Let us remind you tn;
in the days of Calvin Coolidge and Andre
Melon that those statesmen piloted the VIZ
by which the National debt was reduced Sc
eral billion dollars-down below S25, 5,OOC
100000. Look at it now