Milford chronicle., 1961-11-10
QUALIFIED FREEDOM

The following editorial is reprinted from
Editor and Publisher:
According to the Internal Revenue Ser
:, vice man or a company whose business is
faced with regulation or even elimination
because OF impending state or federal leg
islation cannot express a point of view on
that matter and consider it as cost of pro-
tecting his livelihood Internal Revenue says
you can do that if you do so out of profits
but it is not legitimate deduction as bus
mess expense
''This takes on a rather frightening as
pect when you consider that many business
es in this country are in competition with
the government itself. That puts one busi-
ness in the position of siencing it's competi-
tors. The electric power business is case
in point. In the issue of private power as
opposed to public power, proponents Of the
latter attempt to muZZe their private COM
petitOrs by this tax penalty.
'The criterion is whether or not you are
engaged in influencing legislation We al
ways thought this was what America was
all about everyone had chance to be heard
on such things. Now we are told that tax
free government-operated business can be
heard but taxable private institutions cannot
without penalty.
''The next logical step is for Internal
Revenue, or someone in Congress, to declare
that editorial opinion in newspapers, maga-
zines, or over the air, with respect to inn
pending legislation falls in the same cate-
CORY -
THE WAY BACK
Newburgh, New York, may find niche
in history as one of the first American COM
munities to revolt against the welfare state.
Community leaders of Newburgh decided
that people should no longer be asked to
support chiselers. They are not against as
sistance where needed. But they know that
~ 4.
game of welfarism that is bankrupting the
country.
Italy, Texas suffered a disasterous tor
nadO last spring. Immediately, federal Off
cials offered to help establish Italy as dis
aster area and secure federal assistance.
The City Council of Italy wired thanks and
said, Feel federal treasury in worse shape
than Italy and suggest any ALLEGATION set up
for Italy be applied to national debt"
What happened? Italy has recovered.
The local paper has been deluged with con-
gratulatory messages directed to all of the
people of Italy. Typical were the following:
=. If Americans were anxious to pro-
vide for their own security rather than ex-
pecting Uncle Sam to take care of them,
socialism communism wouldn't have a
chance -
From New York: q. After so many
years of brainwashing that there is nothing
ignoble about accepting handouts -. can
only conclude that there must be something
in the water that you folk drink down
there"
Newburgh, New York, and Italy, Texas,
have pointed the way back to an indomitable
America. The big question is, will other
communities follow their lead?
5000
CONGRESS- OF LAST RESORT
If there's one thing this country needs,
it's more investors in productive enterprise.
Iv0vyn Nor,f s<~,
er employment a greater abundance of
wanted goods and services But investors
are facing unfair tax penalties resulting
from antitrust divestiture Orders-and the
remedy lies with Congress-
A serious problem was created by the
recent y. s. Supreme Court decision order
ing the Dupont Company to diveSt itself of
its 81 million share interest in General Mo-
tors. This means that the 700 investors
in Dupont, to whom the General Motors
stock is to be distributed, will be faced with
an enormous and totally unwarranted tax.
After Investment they will own no more than
they presently do-but the government
would have them pay income tax on what
they receive. In other words they would be
penalized for being compelled to take direct
possession of property they already own in
directly
A bill is now before Congress to remedy
this manifest injustice. And there is ample
precedent for it-nOtably, in cases of divest-
ment required under the Public Utility
Holding Company Act, the Bank Holding
Company Act and other statutes. Congress,
in such cases, has treated involuntary dis
tributions by deferring all tax liability un-
til the recipient actually sells the stock
This precedent should certainly be fol-
lowed in current and similar instances. It's
matter Of simple justice land, in addition,
1t would remove discOuraging element in
%hn Investment nirfa1rn that fhic nofinv, cor,t
afford.