Milford chronicle., 1949-03-11
Is THIS THE RIGHT APPROACH?

Is THIS THE RIGHT APPROACH?
In his Special Budget Message to the
General Assembly on Wednesday, Governor
Elbert n. Carvel struck boldly for increased
taxes with which to finance his proposed
spending spree for our State To those who
followed closely his fantastic program of
promises during the last campaign the rec
concentrations come as no surprise. He would
have the members of the General Assembly
burden our people further with already ex-
cessive taxes in order that many of the frills
and unnecessary luxurieS of State and local
government which he promised the voters
during his campaign last fall may be carried
out. He asks for gross income tax on all
incomes in excess of 81 ,04O per year which
would take from DelaWareanS an additional
estimated $5,OOO,000 annually This income
tax proposal is in addition to the present
State Income Tax which would be retained
under the Carvel plan. He asks for tax
on liquors which will double the present
levy to bring $676,000 additional revenue to
the State. He wants increased motor vehicle
registration fees to produce an additional
$462,000. He suggests an increase in the
gasoline tax to total of five cents per gal
lon, which will sap an additional S736,00O
from the motor travelling public. He urges a
tax of two cents per package of 20 cigarettes
to be levied upon those who smoke amount
ing to 100000 annually. His total estimated
tax increase reaches the staggering total of
$7,574, 900 annually with which to carry out
/ his program of spending.
We agree with him when he says in his
u message that "We cannot continue to live
beyond our MEANS" But not once in his
Special Budget Message" do we find sug-
gestion that State expenditures be reduced
Not once does he ask that expenditures be
kept within present State revenues. Not
once does he recommend that our State live
4 within its means and cut its cloth to fit its
! income His philosophy seems to be to tax
and tax and spend and spend Bills to carry
out his proposed taxing program have been
introduced in the General Assembly. 1t is
now the duty of the members of that body tt
carefully scrutinize these measures. 1t vii
then be their task to use the axe, to comb ou
the needless, expenditures and to bring the
revenue raising program back to sanity
Careful reading of the Governors Messag
leads us to ask: Is he approaching the finan
cial problem of State government in sam
manner? Is he working for the best interest
of our citizens when he requests these ia,
increases? Is he laying sound foundation
for the future of our State with his tax pro
gram? We believe not.
CONGRESS STUDIES PRICE DECLINES
The attention of many members of Cor
gress seems to be wavering from Mr.. Tru
mans long range legislative program, an
turning to the immediate problem of jus
what current declines in prices, employ
ment and business activity mean.
Some of the drop can be attributed
seasonal factors. But that doesn't accoul
for all of it by quite ways. Congress want
to get a clearer idea of what is going G
before it does much law making.
The House-Senate Economic Commi
tee recently called in a number of leadir
economists and asked for their opinions al
advice. AS was to be expected, there we
many differences. But the majority of the
experts were agreed that we have passed Il
peak of imitation, and that evelling &
period is now at hand. However, there w;
little talk to the effect that severe recissiC
is imminent.
One of them, representing large Ii
insurance company, anticipated a long pc
jed of good times, though he added that t
"A buyers market is back and the consum
a will have to be induced to buy. Anothe
from publishing house which issues ma
azines dealing with industrial questions, ss
he doesn't fear that a serious downturn
coming, and warned against raising tax
EThe economist for steel company argu
that a. big backlog of demand, left over fro
sthe war days, is still in evidence, and W
optimistic as to the future A pessimis
&#dote was struck by the economist from
SSnational research organization, who "
ghone too sure that we have an easy ro
&ahead
The point on which most agreed v
that there should be no tax increases, eitl
on business or on individuals. The reasC
la these burdens, they think, might prove to
sufficient to turn a moderate and tempor'
decline in business activity into real
cession, The President has said that moth
HAT has happened has changed his view
The tax problem. and Congress should