Milford chronicle., 1957-01-18
THE WILL TO VENTURE

THE WILL TO VENTURE
One group of American citizens knows
from harsh experience what double taxa
ton is. These are the people who invest in
securities. First, they pay the regular rates
of income tax on their salaries and other in
come-and this tax, of course, comes out
first, and only what money is left is available
for living costs and savings. Secondly, if
they sell securities and make profit they
must pay another tax, called the capital gain.
This is not, by any means, problem of
concern only to the wealthy. In the last year
for which such statistics are available, tax
payers with adjusted gross incomes of less
than $4,000 accounted for more than 78
per cent of all individual income tax returns
reporting net gains from the sale of capital
assets, such as stocks. And in the same
year more than one million individuals in
the under-$5, 900 bracket - nearly 50 per
cent of all showing such gains-reported net
capital gains.
The capital gains tax has been aptly char
acterized as ." the most damaging of all
federal taxes to the investor"-for the rea-
son that "it shackles the will to venture" And
that shacklng is direct danger to everyone,
investor and non-investor alike--for it is
venture that creates new enterprises, new
opportunities, more jobs, and better living
standards for all.
Most of the nations-including Canada,
Great Britain, Australia, France, and others
do not tax capital gains on securities at all.
They realize that double taxation is both un-
fair and destructive. There is growing senti-
ment in this country to change the tax laws
and give well-deserved relief to the investors
who make possible the expanding American
economy.
DRAIN ON THE TAXPAYERS
Tloo,~0 J1I hxx4 4Ior1
office department which is in direct compe-
tition with taxpaying, self-supporting pri-
yate enterprise. The service is called parcel
post, and it is devoted to the transportation
of property as contrasted with mails. And
property transportation is the business of
motor carriers, parcel delivery firms, local
cartagemen and express and other transport
companies.
Moreover-surprising as it may SEEM
parcel post represents very large part OF
all post office operations By one measure
ment, that of weight, it is actually the largest
of them all. The 1866 tonnage of fourth-class
mail (parcel post) came to 6,034,600,000
pounds. BY contrast communication use of
mails (frst, second, third class and all other
domestic maiD accounted for 1888, 100000
pounds.
Parcel pOst-that subsidized competitor
with private enterprse-has been con-
sistent money loser; which means that it
has been a consistent drain on the taxpay-
erS. Losses last year are estimated at $685.
100000. Over the years, the taxpayer-borne
deficit adds up to huge size.
This is why all manner of organizations
and informed MISUNDERSTANDING the
Hoover Commission, the Transportation AS
sOciatiOn of America, leading labor unions,
top officials in the post office department it.
self, and so on-seek legislation providing
for parcel post rates sufficient to cover the
full cost of providing the service.
~&~S@@%
WEALTHY AMBASSADOR
John Hay Whitney, our new ambassador
to Great Britain, is man of distinguished
ancestry, great wealth, excellent military
record and civic spirit. Among his ancestors
were John Hay, Lincon's private secretary
who became ambassador to Great Britain
and secretary of state, and William c. Whit
ney, financier and Democratic leader who, as
President Clevelands first secretary of the
navy, took rotting organization and raised
it to the first rank.
John Hay Whitney's capability is not
challenged by the fact that, unfortunately, in
late years the ambassadorship has rarely
been held by anyone whose fortune was not
in seven figures. The entertaining and other
social display required of an ambassador
must be met out of his own pocket if he is
not to shame the United States by his meager
hospitality. Clarence Dillon, whom Whitney
replaces, was a rich New York broker. Lewis
w. Douglas, President Truman's appointee
was copper magnate. Most recent ambas-
sadOrS have been men of this type.
In times past, we were represented in
London by the distinguished poet and essay
ist, James Russell Lowell, and the historian,
John Lothrop Motley. Such men showed that
our culture could match that of any country
in Europe. We could still have such officials
if Congress would grant our diplomats am
pie funds for entertainment. Congress has
been loath to do this lest the people object.
More's the pity.