The Lincoln times., 1955-03-14
Washington
Report From Sen.
Seott's Office
BY BILL WHITLEY
Press Secretary To Sen. Scott

WASHINGTON - TAXES. The
Democrats don't intend to let the
Republicans forget about taxes
when election time rolls around
next year. Even though they stand
q good chance to lose their fight
to give loW-income groups a small
tax cut this year. they will have
some good points to campaign on
next year.
The 1854 tax law was written
under direction of Secretary of
the Treasury Humphrey with
the idea of taking some heavy
burdens off the shoulders of cor
porations and high income groups.
1t was done by the Republican
Congress on the theory that the
many millions of dollars put into
the hands of investors and poten-
tial investors would be turned back
into industrial expansion, thus Gre
ating more jobs at time when
unemployment was dropping.
EFFECTS. The effects of the
new tax law are highly debatable.
The Democrats are arguing that
unemployment is still rising and
industrial production is dropping.
Thus, they claim. the benefits Civ
en- to the high-income groups last
year are sticking to the hip pock-
cts of the wealthy
The argument of the Democrats
is that more money should be put
into the hands of low income
groups. There. they argue, it has
no chance of sticking, and will be
turned back into the overall econ
omy with the result of higher re-
tail sales and increased demand
for industrial production.
FIGURES. Below are some of
the arguments Democrats are us
ing against the tax law enacted by
the Republicans:
The dividend exclusion and
credit sections of the law are eS-
pecially favorable to higher in
come groups. To begin with, 80
per cent of all American families
own no corporation stock what
ever. so dividend benefits help on
ly eight per cent of our families.
Further. 81 per cent of all tax
payers - those with incomes over
$4,000 - get 76 per cent of all
dividend income. 1t is the argu-
ment of the Democrats that these
are the people who are in good
financial shape and really need
no help compared with the man
making two, three. or four thous-
and dollars a year.
Another big complaint is being
filed against the special fund "re-
serve" clauses that allow corpora
tions to deduct certain anticipat-
ed expenses a full year before they
are actually made. 1t was origin
ally designed as a needed aid for
business. but such things as an
ticipated vacations for workers are
being claimed as legitimate future
expenses. Secretary Humphrey Or
ieinally estimated that it would
cost AZ million dollars a year in
revenue. The estimates, as a result
Of unreasonable claims pouring in.
are now in the billions.
CHECKERS. Remember in 1852
when Checkers, Vice-President
Nixon'S TV dog was No. in the
American canine society? Well.
Checkers has been forced to take
back seat. Those things - what
ever they are - that cause shifts
in social positions have pushed
Checkers to No. 5. A beautiful
Collie, who goes by the name of
Sonsy and who is owned by Engi-
neer Commissioner Thomas Lane,
has been given the District of Co.
lumbia's dog tag No. l. Senator
Carl Curtis dog has No. 2, and
FBI Director j. Edgar Hoover'S
two poochs hold Nos. and 4.
leaving nothing better than No. S
for poor Checkers.