Montana labor news., 1948-08-12
STAKE IN
TAX POLICY
CONTINUED from Pnge OneD


Of course. what most readers OF the
material do not realize is that the mem
bers Of the board of directors of the tax
league are known business men
in the state who were largely instru-
mental in putting the general sales tax
the tax on cigarettes. and a state adj
missions tax through the legislature.
lust at present, too, these same gentle
men are working ior. enactment 81 local
payroll taxes in several large cities III
the state. where they realize adoption
oi new taxes cannot be avoided.
lHow the Tax Leagues Work
50 the tax leagues executive secrc-
tarv finds il quite useful to get you all
excited about the seventeen or twenty
seven taxes that are levied on the var
ious ingredients OF the LOAF Of bread.
He knows full well that YOU won't do
ANYTHING about them. However. his
purpose is accomplished if he deepens
your general opposition to all taxes.
ior he is looking forward To using that
opposition Of yours at some future
date against a particular tax opposed
nN his hbdfu o1 directors.
Do YOU require proof. First look
at the nations capital. Congress re
Gently approved a five-billion-dollar
tax cut. giving only ~ per cent OF the
saving to 70 per cent Q 1.-THE taxpayers
numbering thirty-thrcc million in the
income groups below $1,000 while s.
per cent Of the savings 90 to the four
teen million taxpayers in the income
groups above $1,000. And already dur
ing the three month period February
Is through May Is the predicted in
crease in the cost Of living has almost
completely wiped out any and all tax
savings accruing to the millions OF tax
payers in the low income brackets.
Tax Cut Aided the Rich
And who benefited. Why. obviously.
the directors OF the tax leagues. and the
members oi the NAM. and the cham
hers al commerce who were hell-bcnt
on pushing a tax-cut bill through CON
gress regardless Of what happened TO
prices or to the general economy. Yet
rather oddly. and yet not $ oddly,
when one considers how these gentle
men operate, nothing VA said or done
about reducing the excise taxes now
running at the rate OF eight billion
dollars yearly. For it is this eight
billion-dollar tax on transportation. on
telephone service. and on dozens OF
items in ornmon use that organized
labor would like 10 see drastically re-
duced. We know that a very large part
Of this tax is pyramidcd into the cost
Of everything we buy.
SO the tax leagues and their allies
0 another round a, the nations cap
ital By pushing through an inilationary
aid-ihe-rich tax cut Present reports
are that they're not satisfied. however,
but Will push for further cuts with the
converting OF the Slth congress. And
in the various state legislatures and
before city taxing bodies they are at
work trying to cut down or eliminate
taxes based on ability-to-pay. They
are continually dcvising ways and
means Of Kidding themselves Of their
tax load so that a larger and larger
number Of workers, ~iloaters and re
cipients Of pensions" may have the
privilege OF SndTlllg II ny paying Hloi'
and bigger sales taxes, specific excise
taxes, payroll and other nuisance taxes
Load Unfairly Distributed
Labor's stake in our national, state,
and local tax programs IS tremendous
With a fivc-billion-dollar carrying
charge on our national debt, an norm
Gus defense budget. tremendous needs
Tor services and capital Improvement
in states. counties, cities, and school
districts. workers know the tax load
will remain high. II properly distrib-
uted. high taxes may contribute to con
iinucd high employment and %purchas-
ing power. II improperly distributed,
they may lead TO a decline in purchasing
power, decreased employment and pro-
duction. and 50 contribute TO eventual
depression.
The immediate challenge to labor
calls for its establishment Of committees
on taxation in every central labor body
and state federation in the nation. Such
wcll-iniormcd committees can By on
,inuous study and activity promote and
increase an understanding Of tax issues
by all members Of organized labor.