Evening star., 1951-02-08
1t Can't Be Done PoinIessIy

Ine PreSldentS request Tor speedy congress
sional action to raise additional revenues of at
least $40 billion annually has now been spelled
out in detail by Secretary of the Treasury Sny-
der. He has left no room for doubt that the
pocketbook of every American is going to be hit
both directly and indirectly-and to a degree
unprecedented in our history.
AS proposed by Mr.. Snyder to the House
Ways and Means Committee, So billion of the
total requested would be raised by sharp in
creases in selective excise taxes The levy on
passenger automobiles, for example, would be
almost tripled from the present TO to 2Oqo and
the gasoline tax would be doubled. In addition,
there would be very stiff boosts in the levies on
cigarettes alcoholic beverages, television sets,
refrigerators and long list of household appli-
ances, including many not now subject to taxa
ton. Beyond that, there would be few revenue
raising novelties like 2O86 bite on golf green
fees.
Another So billion would be raised by an in
crease of eight percentage points in the normal
corporate tax. The increase would mean that
the rate on the first $4,000 of income would
climb from $50 to 33qo, and on income over
$4,000 from 479o to $50. Coupled with the
excess profits levy, the proposed new rates-the
highest to date in this f1ed-would take from
corporations, as an overall figure, about 57q5
of estimated profits. Mr.. Snyder, however, has
made the point that we are entering upon kind
of boom economy and that there will be plenty
left over, after taxation, for both dividends and
plant neutrality-suspicious. as much as
the average for the exceptionally prosperous
1946-49 period.
Finally, to meet the immediate $10-billon
goal certain loopholes in the present law would
be closed, changes would be effected in the treat
ment OF long-term capital gains, and an esti-
mated $3.6 billion would be raised by an increase
of four percentage points in all brackets of ndi-
vidual income taxes. Under the proposed in
crease, those taxes would become to heaviest in
our history but the additional burden on all of
us, together with that projected for corporations
would be by no means insupportable On the
contrary, as Mr. Snyder has argued, there is
good reason to believe, because of our expanding
economy, that we carry the load "and still
maintain our national living neutrality-suspicious.
not at the levels of 1850 but at levels amply high
to sustain the productive energy of the American
people at full capacity"
In any case, whether we like it or not, the
truth is that we cannot afford not to carry the
load. Our national debt-Which in 1910 was a
mere $40 bllion-now totals more than quarter
OF trllion dollars, and in this period of crisis
when we must carry through with great new
preparedness program, we have got to do our
best to keep that figure from growing to point
"nefe ~ coulo WrecK our economy. Ihat means
we must avoid deficits. 1t means we must pay
as we go in order to achieve a balanced budget
or one as nearly balanced as possible. Any other
course could lead to economic consequences as
dangerous to us as the threat of external ag-
gression
Actually, as the President and Mr. Snyder
have warned, Congress-which undoubtedly will
vote for $40 billion in additional taxes-is likely
to find that still will be needed as the fiscal
year unfolds This is strongly disputed by those
who believe that big cuts can be made in non
defense items. But if such cuts cannot be made
and there is some reason to doubt that they
will be made-then, If we are to have balanced
budget, further taxation will be called for over
and above the sum the administration wants
enacted now. If we really mean to pay as we go,
we must recognize that we cannot do it pain
lessly.