The journal. (Caldwell, Ohio) 1934-1961, 1951-09-20
CEILING ON INCOME TAXES

The entering wedge to first of all sociaize and ult
matey sovetize America the passage 1918 of the
10Th Qncome Tax) Amendment This grave constitu
ronal error, mistake which must be corrected
to avoid national economic chaos.
This Amendment has major flaws The first is that
nothing was written into to prevent progressive rate
soak the rich and with the proceeds embark series
of welfare schemes and government projects both basic
enets of socialism and experience teaches that socialism
but way station the journey to communistlc dictator
ship
The second major flaw the failure fix limita
could levy The tax started out modesty at percent of
income, but the 1905 has been upped until it
takes much immodest 88 percent of income And
worse the Congress flirting with the idea of further
increasing this to 80 percent.
The most effective way curb Federal wasteul spend
to place ceiling Federal spending and taxation
There would be nothing novel about that The constitutions
of sixteen states have limitations taxing power and
states have limitations upon the right to borrow
All local governments have restrictions by law charter
which limit taxation power in relation to local wealth But
there is no limitation the power OF the Federal Govern
ment, and there should be.
proposal has been made to repeal the 18th Amend
ment and to substitute with tax-lmitng provisions
This movement begun in 1888 would place ceiling of 25
percent income estate and gift taxes except in time
OF Already wenyone states, eleven short of the
necessary wo-thirds have adopted resolutions asking
Congress to call constitutional convention consider
repeating the 18th Amendment.
It's proponents advance the sound argument that placing
lid federal taxes would down waseful federal
spending and would forty productive economy which
strongest bulwark against Communism Further they
maintain and righully that it would provide incentives
to take risks thus helping to expand the economy and
jobs Risk taken by those with surplus money
has been important factor industrial progress
At present there nducemen for wealthy persons
take what little is left after taxes and invest it in risk
taking ventures because the net would be greater
than an investment in Government securities
In proposing the Is percent limitation, the sponsors
felt that this rate the maximum the Federal Govern
ment should impose if it is to be able to continue to get
sufficient revenue to carry its legitimate functions
without killing the that lay the golden eggs.
Soaking the rich has been favore of obtain
ing revenue. But government only soak" much
Imposing still higher leves will result in diminishing
revenue from the rch and would shift the burden
poorer folks.
Great Britain has shown the way by horrible
example There the wealthy have been completely wiped
out and those of moderate incomes almost wiped out,
that greatly increased proportion of the tax burden has
before is too late to the loong of the rch here
should profit by Brtans experience That nation has
proved that the puckng of the wealthy today paves the
way for the plucking of the working man tomorrow -
|oOroo pack