Evening star., 1951-07-18
Minneapolis Stur Advertisement


As union officer who always has sup
ported our free enterprise system. I am
forced to register strong dissent from
the tax editorial Of the Minneapolis Star
which appeared as paid advertisement
in the Washington Evening Star Of
July s.
For years our country has followed
the American way Of taxing according
to ability to pay. Labor has supported
that American principle Of taxation.
Unfortunately. since 1910. Congress has
digresSed from that principle. Instead
it has slowly swallowed q theory ad-
yanced by the National Association Of
Manufacturers and advocated In the
taxing to drain of purchasing power"
Almost every tax bill in the past de-
cade has hit hardest at families with
low or moderate incomes. The Mime
apolis Star editorial calls this newest
tax bill "socialistic." Yet, if it Is
adopteds the average family with two
children living on an income Of $4,000
a year will be paying more than twice
the Federal income tax it paid in 1941,
while the family with $50, 900 year in
come will pay only about two (2) per
cent more In Federal income taxes than
1t did in 1941.
For 10 years. tax legislation has IA
vored the wealthy at the expense of the
lower income groups. And for just as
long, Congress has favored the corpo-.
rations at the expense1of individual tax
payers. In 1943. for example. A per
cent of all Government revenue came
from corporations. 48 per cent from in
dividuals. Today, only 80 per cent of
all Government revenue comes from COR
porations while 68 per cent comes from
individuals including sales and excise
taxes which are paid by individuals.
Despite these facts, the Minneapolis
Star is now urging Congress to increase
the tax rates Of families living on ST, 200
a year or less and ease up on taxing
excess profits of corporations.
The Minneapolis. Star argues that
Congress should tax excess purchasing
power" Of families earning $1,000 year
and less. Excess purchasing power"
presumably, means purchasing power
. that Is unnecessary to maintain a family
at the American standard Of living To
most union members, it seems unreaSon-
able to maintain that family with
$4,000 year income has less excess
purchasing power" than a family with
5000 or $4,000 year to live on. 1t is
q rare family with children who can
today maintain decent living standard
on SIS, 900 year and have any excess
leftover for savings.
It seems to me that the Minneapolis
Star Is advocating taxation to lower the
standard of living for the great majority
of American families while pleading for
the luxuries Of the few. It would permit
industry to hold onto greater portion
of its profits as an investment, yet 1t
would deny that same right to families
in modest circumstances.
Concern for the mounting tax bill for
corporation stockholders certainly is
justified. The cost of defending our
form of Government and our way Of
life is expensive. None of us enjoys
the burden of defense expenditures. On
the other hand, we are all stockholders
in America first and we must all
shoulder our fair share of the burden
and not use National emergency to
attempt to shift greater part of the
burden onto the backs of those least
able to bear that burden.
A. ]. Hayes,
International President. International
Association Of MachiniSts.