Minneapolis spokesman., 1963-01-24
The Presidents Tax
Proposals Don't Make
Sense To Us

There in general two theories about how to
manage the economy to insure its operation at
level to provide full employment and meet the needs
Of the people
There those who say prime the pump;
courage investment in plants, machines
products, and this will provide the needed en-
ployment On the other hand there are those who
say, stimulate consumption; get purchasing power
to the consumers and consumer demand will start
the machines rolling and call people back to work
In between, there are those who recognize that
both things are important. The Importance of the
measure the other depends upon circumstan-
The circumstances Of today suggest that the
important factor is the need for more purchasing
power more consumer demand. Indeed, one of the
problems today is the large amount Of unemploy-
ment resulting from heavy investment in automa-
ton. The automation ranges from automatic harv-
estng machines displacing the field hands who are
from the lowest economic group in the country to
computer that will set linotype composition in about
10 minutes equal to days work by highly skilled
compositor Thus investment is putting people out Of
work at a frightening pace.
The Presidents proposed tax reduction is heav-
lily weighted the side of investments and the in
vestor group in economy. 1t proposes, for ex-
ample, reduction of $1O4 in the taxes of single
person earning $1,000 year, and $1324 for per-
with an income Of $4,000. This leaves the man
in the lower category with $223.50 month after
paying 1913, $26.50 month taxes. 1t leaves the
upper-bracket man with $1,24267 a month. You
know that the $223-a-month man is going to spend
all of his available income mostly on bare neces-
stiles. You be pretty sure that the 81, ,200-a-
month man already has a heavy savings and in
vestment program and that he is going to increase
this by about the amount of his tax savings.
You also know that his investments going
70 inf pc1Ilar
successful, like the computer industry that is be-
ginning to displace typesetters in wholesale num-
bers the industries that are developing mechani-
cal hands for harvesting apples, oranges grapefruit
nuts and other crops that have tradtionally furn-
ished a meager living to the lowly migratory agri-
cultural workers.
.~ II the Administration has tried to make sense
out Of its proposals. its efforts have escaped
We have heard many incantatons about the magic
effects which such cut win have, but have seen
convincing figures or arguments
Associated Press estimates that a family Of
four in the 5000 earning bracket will stl have
$42 bill after reduction Of 80 per cent We submit
that $42 tax on a 50 900 income supporting fam
lily of four people Is scandalous under todays econ
omic conditions Not only is the income incapable Of
providing what we consider an American standard
Of living but the Garner Is usually among the most
insecure, economically, In our work force.
On the other hand, the $4,000 family Of four
will get a 2o4% tax cut amounting to $S42. The
saving to the hgh-bracket family Is almost 80 per
cent Of the total net income Of the low-bracl1et
family 1t is almost so times the dollar reduction on
the So, 900 income
The government cannot, Of course, step In and
arbitrarily adjust incomes (though 1t take
measures to stimulate higher earnings in the lower
brackets). But surely 1t should not manipulate the
tax rates to increase the disparity between the high
est and the lowest economic groups.
This simply does not make sense to US.