The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1951-03-29
Government Loses
Billions In Taxes
Says lam Chief

IOoyS HHM VnlCs
| Washington (LPA)-"There is q
lot of tax money going down the
drain of special privilege, as Uncle
Sam looks around for more rev
enue," said All Hayes, president OF
the International Association OF
MachiniSts.
| Addressing meeting of upwards
IOf 700 state and local leaders here
Hayes charged the special "deple
tion allowances allowed oil and gas
producers and mine operators cost
the government at least half bill
ion dollars year. More potential
tax money gets away under the pro
vision enacted last summer permit
| ing corporations to amOrtiZe defense
plants in five years by deducting a
fifth of the cost from their annual
tax bills, and through other loop
holes corporations invented. Two
billion dollars is lost through the
split income system which cuts
the income taxes of married couples
making more than $4,000 year,
Hayes added.
The state and local officials We're
attending the twO-day conference
called by the United Labor Policy
Committee to discuss labor's role in
the defense program, find means of
improving that role and lay the
basis for an about consumers cam
paign against mounting living costs.
The ULPC, formed in December,
represents IL million members of the
AFL, CIO and incorporating" Rail
Brotherhoods.
DevOting himself exclusively to
the tax program, Hayes reviewed
the history of postwar income
taxes. He pointed out that in 1913.
Congress cut the income tax rate
eight percent. Last year taxes were
increased four percent and the bill
now before Congress calls for an
other four percent Hayes said the
new bill puts taxpayers back on the
World War III basis but with IAN
important difference"
"In the 1914 World War III tax
bill, Congress provided PERSONAL
exemption of $500 for each indivi-
dual" the LAM chief recalled. ''By|
194S the cost of living had increased
to such an extent that the $500 was|
raised to 5000 relief of 20 per-
cent. Now then, the cost of livingI
since 1914 has risen by Al percent,
but the tax bill now before Conf
gress does not include higher ex-l
1t ignores the higher cost
Of living factor. Thus the 20 per
cent relief granted in 1913 has bel
come deficit of III percent
Hayes said post-Korea pricel
in defense industries andl
other areas of federal spending hasf
already cut the value of the dollarSI
10 be used for mobilization by aboutl
Lhree billion, He said Air Forcel
power had been cut byl
he equivalent of 80 + Sc jet fight
ars. For the most part, these prices
IN articles of defense have beenl
arbitrarily marked up and for no
,ther reason than To swell prOfitSI
or those who manufacture and sell
bata hn 1naIarnI
When ii comes to taxes, there are
no amortization, depletion or eX-
cuy," Hayes declared. His incomel
aX is first charge" on his wageSl
'ut it's not even included in thel
- Dor Departments Consumers :
'rice Index, which governs "esca-l
atOr' contracts, although it nowl
mounts To eight percent of wagesl
N the average and may amount to
. percent soon.
This means labor is expected toi
AIRY the load, Hayes pointed out.
1t does not always have to be thatll
ray," he added I'VE are willingI.
nd anxious To carry our share OIL
he whole load but no more. Wei
ave organized strength now. Andl
ihat is more important, we arel
earning how to apply our united in
diligence to direct that strength. l.
hats what United Labor PolicyIl
means" |,