Evening star., 1962-05-19
LETTERS TO THE STAR
Object to Withholding Tax on Interest and Dividends

why ~" VII ~
period of five months is quite
another matter. And should
this deficit necessitate bor-
rowing, it would be a debt
that could never be paid.
Income is not q sometime
thing. 1t is ones subsistence
and sustenance. 1t has to be
equated with outgo. month by
month. Living cannot be
suspended for five months.
Rent. utilities, State and 10
cal taxes. time payments or
other prior commitments,
have to be met - on time.
Illness, accident. emergency.
may not be postponed. Eat
ing, optimumly. is q daily
thing. In the lower brackets.
where every penny must be
budgeted, there is already lit
tie If any margin, and no
area at all left for retrench-
ment.
Medical care for the aged
bypasSes these people: yet
their ability to provide 1t for
themselves would be de-
stroyed. The Importance Of
purchasing power" is re-
peatedly stressed; tn eirs
would be arbitrarily curtailed.
Increasing income is the
American ideal; many of
these would incur an actual
and appreciable reduction Of
income through loss Of in
tereSt.
These are people whose de-
posits make available loans
for construction; stockholders
who have furnished capital
for the establishment, devel-
opment and expansion Of
the country's industries and
to whom the corporations
will look first for fresh funds.
But their deposits will dwin-
die, their resources diminish.
their capacity to meet their
allotted quotas will be re-
duced or wiped out.
They have made important
contributions to the national
prosperity. Now, with the
funds and their futures COM
mitted in good faith, they
find themselves, for the most
part, retired, elderly, possibly
i'll, without pensions. social
security or other means Of
support, about to become the
victims of an intolerable
squeeze.
If this measure is not
meant to be punitive; If
there is, in fact, no intention
to harm - the solution is
simple. Since 1t is admittedly
feasible to exempt certain
classes Of individuals, then -
not as q concession or as
preferential treatment, but in
simple justice - exemption
can and should be extended
to them.
Application for it would
(should) bring their tax
records to notice - a well
come exoneration Of the
blanket indictment un d er
which. they now stand. For
exempted accounts. by all
means continue the estab-
lished practice Of reporting
dividend payments by the
corporations, and extend 1t
to interest payments on bank
accounts, lest there be the
slightest doubt Of their
probity.
And let them continue to
meet their obligations to the
Government, as they have
been doing, on time and in
full.
There can be no valid ex-
cuse for denying to these peo-
ple the same consideration
accorded to others Of their
age and circumstance. and
the same right to live on and
according to their own means.
Dorothy Ford Mayhem.
i = =
An event occurred in busi-
ness some few years ago OF
which I happened to be q
part and observations from
which I find most applicable
to this savings (bank) ac-
count and dividend with
holding issue. One OF the
major farm equipm e n t
manufacturers attempted to
impose upon its dealer or
ganization an agreement Of
automatic acceptance Of sight
drafts against the individuals
bank account for delivery Of
any goods. The ramifications
of this clever maneuver mad
to be closely understood. In
essence it meant the in
dividual responsible for his
own business enterprise was
losing control Of his bank &C
count. We dealers Of Central
Illinois banded together and
in one concerted effort de-
livered o crushing defeat II
this attempt. To my knowl.
edge 1t never appeared again