Ottawa County news. (Port Clinton, Ohio) 1931-1956, 1954-04-23
STEVE ]. NovAK, PRES.
LOCAL 497, ,uAW-cio

LOCAL 497, ,uAW-cIo
An increase in personal incom'
tax exemptions and removal o.
s'dividends and depreciation" pro
visions that benefit the wealthy
would help set the economy on the
road to recovery from the present
recession. This is an outlook ex
pressed by CIO President Walter
Reuther in a speech at the Chicago
CIO Conference.
Calling for raise in personal
tax exemptions to $500 this year
and $1,000 next year, Mr.. Reuther
said:
.'The removal from H. r. $500
Of tie two major provisions-Q)
reduced taxes on dividends and
(2) liberalized depreciation allow
ances=-which make up the LARG-
EST TAX CUTS would greatly
offset the loss in revenue from
increasing exemptions"
If these two provisions were re-
moved and some of the other nox-
ious provisions I. corrected,
our economy, in our judgment,
would be well on its way toward
our long-range goal Of expanding
and improving the standard of
living of the American people by
maintaining maxium production.
employment and PURCHASING
POWER.
Mr.. Reuther described the
House-approved tax measure as a
''give-away program for those in
groups in our economy who, at
this particular point in time, need
no tax relief Each and every
TIME. an additional tax concession
is made to wealthy taxpayer, it
places q greater burden upon the
low and middle-income taxpayers. I"
Business investment and the
economy as whole can best be
simulated by increasing the pur-
chasing power and the take-home
pay of the majority of the tax
payers.
Let's take the case of Mr.. Sloan,
executive of General Motors. He
will gain an estimated $4,000 re-
lief in income tax by the above
dividend and depreciation" cx-
enptions. Let's 60 into his home,
lock around and ask ourselves
this question, "Will Mrs. Sloan
need to buy an extra quart Of
milk or an extra loaf of bread
or an extra pound of namburg?"
We doubt that very much. She
may not even need an extra mink
coat.
But take that same estimated
$4,000 and spread it our among
people who earn less than $4,000
a year in the form of tax relief
to these people. WE CAN BE
SURE THAT THE WIVES OF
THESE WORKERS WILL BUY an
extra loaf of bread, an extra quart
of milk, an extra pound of meat
for the table-that extra pair of
shoes that is SO badly needed.
She probably would buy one or
two larger articles such as replac-
ing worn out iron or washer or
she might even attempt the pur-
chase Of an inexpensive model
TV set.
You can just see the demand
these people can create through
the increased purchasing power.
Their demands will go out to in
crease production of the bakers,
dairies, shoemakers, clothing and
furniture makers and others. In
fact, all business would be stimu-
lated by this $4,000 if placed in
the right places.
Why in the long run even the
stockholders will gain this way
and We are convinced this is the
only intelligent and fair method
OF tax relief distribution. Not the
trickle-down method that the Ad-
ministration is recommending.
The bright picture they are
painting of the oldfashionel
"trickle-down" theory reminds us
OF the song pennies From Heav-
en- and makes about as much
sense. Each time lit has been
tried. itghas failed"
Hoover's administration slogan
was-just have confidence and
Prosperity is Just Around The
Corner"
Our present administration be-
lieves-just have confidence and
'The Business Will Trickle Down
To You"
Local 497 Membership Meeting
This Sunday, April 25th
2P. nj.
In Local 497 Hall
Ftdrrlal1 fle excitement land
bally-ho over what took place at
Toledo Willys last week. This is