Pressure Group Interests Make Tox Program Political Football
WITHERS, WILLIAM
Pressure Group Interests Make Tox Program Political Football Failure of Price Control Greatest Threat to Inflation by WILLIAM WITHERS Associate Professor of Economic*, Queens College. CECBETARY...
...The way of tat progressive is invariably hard...
...Leaving out of the picture savings and additional war loans which may add another $40 billion, they estimate that the gap would remain in the neighborhood of $41 billion unless additional taxes are collected...
...has given all the guarantees that it could reasonably be expected to give of no truck or trade with the Communists...
...Unless price and wage controls go completely to pieces the problem is not too critical...
...Statistical estimates of the national income and the expenditures for consumable goods in 1944 save indicated an inflationary gap of at least $40 billion...
...as being merely a pseudo-Sociahyt...
...income tax receipts under the new rates were estimated to yield approximately six and one-half billions, corporation taxes one billion, excise taxes two and one-half billion^ and estate taxes 400 millions...
...for espousing socialistic measures, they now refer to the C.C.F...
...to add insult to injury, have formed a so-called federation of "independent" unions, complete with legal counsel and an official newspaper...
...In a very fra« article reviewing the proceedings...
...Another cause for the present tax impasse is the...
...Now I am' not trying to make a case here either for or against the State-fostered or State-compelled-union shop...
...Tax experts can be provided for any riewpont wnich will prove politically feasible...
...And the ball was tiuhgf around the lot with Lewis growing met* sad more impatient * • • 11THEN things had come to a certain pass, Harold Ickes was "encouraged" to-'think he night make a deal with Lewis...
...Then he confesses to being a Communist and that he has bten in jail and wants to overthrow governments...
...It is possible also that a twenty to thirty percent increase in prices would not constitute as great a burden upon these low income groups1* as the increases in the tax rates proposed by the Treasury...
...Corresponding increase in the taxes on net incomes up to $8,000 also, seem inadvisable...
...Aad elsewhere: "The spectre of recent C.C.F...
...The only person to come out of the fracas with any shred of dignity was Secretary of the Interior Harold L Iekes...
...The conference agreed "in principle" on the desirability of cenrpuksnry collective bargaining, but has apparently fit met' in camera* struck a snag on the age-old problem of provincial vs...
...Bill (calling a detective), take this guy to Ellis Island...
...This may be the prelude to a new twist in the line, in preparation for the post-war period...
...Regardless of whether these taxes are on personal -income or not, they should be subtracted from the total national income...
...The government has shown little disposition either to allay fears of unemployment or to ease industrial urrest...
...In this His Imperial and Royal Apostolic Majesty is undoubtedly right There are no dogs in Italy to speak of...
...Taxation, like the tariff, has alwavs been s politics...
...These income groups tire paying all that they can reasonably bear with the normal rate at six percent and the surtax rates tinder the present law at 13 and 16 percent If in addition the payroll tax rates are increased in the next year the lowest incomes will be heavily hardened...
...Knowing that it was on treacherous moral ground, the War Labor Board blew hot and cold on the subject of Lewis...
...HE tax issues in the conflict between the * Treasury and the Ways and Means Committee concern the amount and forms of taxation needed...
...Certainly an additional -tax program of from five to eight billions should suffice to eliminate an inflationary gap which would arise from errors in these estimates...
...According to Treasury data the 1944 national income will be $157 billion, of which $89 billion will consist of consumable goods and services...
...Wage-freezing still meets with organized labor's opposition, and the government is known to be considering ways and means of maintaining the wage ceiling without having to pay the cost of living bonus which is connected with it...
...continued upward spiral of the Federal budget...
...activity free from religious seraphs I» English-speaking Canada the Bishop**!!** " the whole left their flocks free in Ums5•>!>•* In fact, practicing Catholics are among t»* C.C.F.'s legislative representatives, avffcem* Canadian Quebec, however where the Chord wields an almost medieval influence, sanction will release pert-up interest* sai desire for radical social change The CCF...
...proposals arise, however, from another form of politics...
...Normally, labor legislation lies almost entirely in provincial hands...
...That will do...
...As might be expected, these candidates wiH ran in precisely those- seats -where the CCF...
...Lewis, who is sharp, at once jumped upon the "arbitrary" nature of the Little, Steal formula, which did not consider the fact that the cost of living could still fluctuate wildly in spite of OPA...
...Labor-Progressive, the CP...
...Several provincial conventions during the past two months reported substantial growth in membership...
...He says so often he does not quite remember...
...might prove to be a vehicle for Communist motives, the editorial stated further: "Time has shown, however, that the C.C.F...
...persons haw been prejudiced against labor...
...of course, branded as the disrupter of unity Organisationally, the CCF...
...11ponding /efa Quebec LJOWEVER suspect this clerical sapeert far 11 the C.C.F...
...It has...
...only as a btriwaltflsfsls* Communism, the fact remains tbet for thas-sands of Catholics it will mean uteres...
...But why, I ask in all modesty, is His Imperial and Royal Apostolic Majesty allowed to make such statements...
...The Immigration Officer: "Has he ever been in prison...
...The whole business began before Pearl Harbor, when Lewis was striking for the union -wp il) the csp'lve eoai mines of the steel companies...
...SptMing Tactics ef CjP...
...Probably no great harm has been done ts the war effort by all the shenanigans...
...fn practice, this mesne that in the forthcoming municipal elections in n number of cities the C.C.F...
...The Little Steel formula will bo revised...
...Great though the —---------------dangers of inflation are, constant concentration upon them lead to exaggeration...
...The jf^wmasJ Poet, Canada's leading commercial ns"3papfc described the atmosphere as follows: "Though the meeting was nossiaallyjfjP^ to disease three topics: agriculture, f**^ war reconstruction and Uber-usaaeffpf**¦,relation*, it was clear that the underlying concern was about the future of enterprise itself, with repeated emphasis either on the political dangers that Be ahead or the steps that can er should be take* to bead off a •htoeboot' of free corporate enterprise in Canada...
...Thus, there have recently been strikes in various parts of the country in unions known to be controlled by Communists...
...Chief reliance must sti.'l be placed on price control measures...
...Harry Hopkins teht^L President to crack down on !. '«is: VSgg, advised caution...
...Then the following dialogue takes place...
...This is undoubtedly the most significant action ever taken by organized labor in Canada duqpg the ba?f -century or more of its eaissawfitr - *. ™»-^ Yet as if that were not enough to discomfit the enemies of Canada's Socialist Farmer-Labor Party, the more recent action of the Roman Catholic hierarchy served further to enhance the prestige of the C.C J. At a plenary' meeting of the Archbishops and Bishops of the Catholic Church in Canada, permission was formally granted to Catholics to vote for and otherwise support "any political party upholding the basic Christian traditions ef Canada and favoring needed reform in the social and economic order...
...To apply the birehrod in specific places, let President Roosevelt go to one corner of the room and John L. Lewis tc another And let the War Labor Board and Con-gresa amad up to await their tarns for at least a gentle admisristrstion of the switch...
...It is known that the reeetJomrj isolationist Bloc Populaire sought the sdbhl recognition of the hierarchy, without tS*«a» The Bloc is exclusively Quebec and Fltf^Jj character whose leaders point to pit) wee* Italy and Franco's Spain as model "Chriso**' states...
...There is .no great progression in the income tax system when taxpayer with less than $2,000 of net income pay 19 percent and those from $6,000 to $8,000 with three times as much net income pay only 30 percent * • * IT is becoming increasingly apparent that the * adoption of the sales tax is inadvisable at this time...
...The quotes are those of His Imperial and Royal Apostolic Majesty, not mine...
...dominion rights...
...The flat refusal to have any track wkh the Communists created scarcely a ripple in the ranks*^of the CCF.: the rank and file accepted the stsnd almost unanimously...
...Otto Hapsburg By HCNDRIK WfLLEM VAN LOON ACCORDING to the newspaper which has the sad courage to print Westbrook Peg-ler's daily obscenities^the Archduke Otto, pretender to defunct throne of Austria, delighted the guests of the Chicago Women's Athletic Club by telling them that the accusation that Italy's glorious King is a prorGerman is a "lie...
...has maintained a sincere and effective opposition to the Communists who are even yet persisting in efforts to be recognized as collaborators...
...Does he belong to an established form of religion...
...The government has been forced to admit that wages should be tied to prices if justice is to obtain hi a wartime economy...
...It is also possible to obtain at least $4 billion from increases in excise tax rates, the increase of the corporation tax rate from 40 to 50 percent and the increase in the excess-profits tax rate from 90 to 0i percent Still farther possibilities' of increased taxes are to be found in the proposed increases in the estate tax and in the redaction of tax exemption on Federal securities...
...almost certain to -wis...
...Then, a short time later*, be •^Bn<uieer John Steelman from his government job in (he -Department of La-i)OTr and aVewed this federal official to sit on ¦ | syjlpj1iii.il committee with Lewis and a steel company representative After Steelman had thrown the decision Lewis's wa*, he went back to his job in the "Deportment of Labor...
...Should His Majesty not understand this vulgar expression, then I give it to him in my beet Wiennerisch "er eclTe Maul katten und bet ~ der Mama na BetetuU tiizen gekrn...
...in the form of a book note: MeAlpster Coleman's "Men and Coal" t Farrar and Sim-hart...
...On the contrary, fhe great mass of -the membership has, shown, itself determined to stay wit hthe feC.T...
...and the en<: of war may bring depression, at least until industry has retooled to peacetime production...
...First it assumed it had jurisdiction over mine wagsa, jMk * it said H didn't...
...If -the national income paid out were $157 billion, as the Treasury estimates it, and personal taxes only $21 billion, the inflationary gap would still be covered...
...possibly the government itself...
...The Commissioner of Immigration: "Thank you...
...is already taking sdsaatay «* the improved situation by appointing fal-Ua* French organizers for Quebec and the arms b adjoining provinces where French-Can***" predominate...
...State and local collections will probably amount to another $10 billion...
...They havr also been further encouraged to think of the New Deal a* weak and inept Baser the prospects for reaction in 1944—-or 1*48 —have been increased...
...Phenomenal increases in rates were suggested, including a jump -in the surtax rate on the first $500 of net income from IS to 21 per cent...
...Some tori of deal was necessary if the armament industry was to be assured of its coking coal sap-plies...
...The Canadian Register, official Catholic weekly, stated it in an editorial: "The hierarchy has spoken,to set at rest the question recently agitated in certain quarters, of the legitimacy of Catholics giving support to the political party known as the Cooperative Commonwealth Federation...
...The whole business was replete with lp>»Tjgr Jaatjums, sulks, huffing and lick-your father" stuff, and complete lack of ntaghanhairy on the part of almost everyone concerned...
...At the same time, wkh the logic which has made them such cbarmtng companions ia the labor movement, they have Initiated a eampaim for "unity...
...Has he ever thought of overthrowing a government...
...But at this point the War Labor Board decided to get tough...
...Excessive taxes on low incomes is both ineffective and unjust...
...Further increases in taxation would stimulate a widespread movement to raise incomes, particularly for those who have fixed salaries and who are in the brackets below $2,000...
...Fear of inflation made them recommend an addition of $10,5 billion to the present tax toad...
...is girding hs loins to prevent the C.C.F...
...hat with the Communist opposition ss well...
...As Randolph Paul has pointed oat, a 10 percent tax falls three times as heavily upon persons with incomes below $2,000 as it does upon these with incomes above $10,000...
...Would it not be a good idea to warn our political guests that this rule works both ways and that such references to other political guests (which- Count Sforza was until a very few -weeks ago) are the acme of bad taste...
...The noble Ap-peninians either let them starve or they eat them and therefore everybody is more or less a dog-catcher in his own right...
...Thus, their splitting tactics may cost the Canadian working class a number of re pre-seiftatfves...
...imgkt g>ve their support to the Communists fisgsisss as a labor party...
...He speaks only Russian and the Immigration Officer calls for his Russian interpreter...
...At the same time, they appear determined to lead strikes in order to maintain their leadership...
...Consequently the Ways and Mean* Committee recently voted to reduce the original Treasury proposals to S2.14S million...
...The t'letory Tax should of course be,repealed and every effort should be made to lower the burden of the personal income tax upon the lower income brackets...
...But actually it had...
...In spite of the fact that the]figures of the Bureau of Labor Statistics indicate only a twenty-five percent rise since 1949, the upward trend has now assumed serious proportions...
...I CAN foresee a charming little scene at the * LaGuardia airport...
...Rightly or wrongly, man...
...It is estimated that $106 billion will be needed for the fiscal year, 1944...
...3.00) provides an admirable beckgreuac and running story of recent events for Isjjint who wants to understand what has hsppflEHl to us Van Loon's Diary Bad Taste of Mr...
...His Majesty then went just a little further and Informed his audience that Count Carlos Sfor7.a "the great liberal" (the quotes are again those of His Imperial and Royal Apostolic Majesty) could not even be elected dog-catcher in Italy...
...The Treasury estimated also that personal taxes would amount to $21 billion in 1944 at current tOx rates...
...Tp ask good taste or tact of a Hapsburg is , sf course a waste pf time and effort Just the same I wish (and many persons feel the same way) that His Imperial and Apostolic Majesty would shut up for the .duration...
...Congress could have stepped in long ape to-establish a just wage-and-price policy, but ltsfajam will not stop the steady flow of guns and plane* to the fighting fronts...
...CECBETARY MORGENTHAU and Randolph Paul ran true to form when on October 4 they submitted to the House Ways and Means Committee their proposals for new taxes in 1944...
...At the present time it would seem that taxes are extremely unpopular...
...Exit Joseph Stalin...
...Lewis AnaQy got his way...
...Regarding the situation politically, it may be said to be a matter for congratulation that there is such a party as the C.C.F...
...He ia a self-confessed Communist, an Atheist and an old jail bird...
...War workers are fearful that the tapering 'off of war contract* may lead -to-widespread" tfnemployment...
...The C.C.F...
...But the Battle of the Spoiled Children has mass it harder than it might otherwise have bees P.S...
...It is equally possible that excessive and unfair tax burdens upon the lower middle class can also lead to fascistic attitudes...
...P"»-C.C.F...
...Hewing faithfully to the "win-the-war" party line, they pay lip service to the no-strike pledge...
...Moderate taxes can assist this program...
...might be in some OAiartamywsei* it will be said that the Catholic Chorea i» »• terested in the C.C.F...
...If the tax rates in the lower income brackets were increased at the present time, the same tendencies would result With the present tax levels wages are already...
...He tells me to tell you that he would rather be dead than belong to an established form of religion...
...Ask him one more question...
...which are eupetted next summer...
...Persona...
...A rather ferocious looking gentleman in high boots and a slightly unfamiliar uniform descends from a Clipper...
...is making progress...
...to attract those voters who, as recent Elections have shown, are dissatisfied with the djjjffper ties and who, in the absence of the CCJf...
...The Treasury itself has estimated that tax collections for the fiscal year, 1944, will amount to $41 billion...
...Some indication of this may be found in the fact that while up to recently the Communists belabored fhe C.C.F...
...President Roosevelt has 1 steadfastly refused to take a vigorous stand in regard to the enforcement of price regulation ia the...
...being increased to meet the tax burdens...
...Having given way to Lewis ia the captive mine case, and having am wartime standard of justice upon which to take renewed high moral ground, the government necessarily faced up to Lewis's demands with a bad conscience...
...The ssles tax has been cited for years as an extremely regressive form of taxation...
...It would seem that the inflationary gap has been overestimated and that the levels of taxation proposed by the Treasury may be excessive...
...The level of taxation has reached a point in this country where additional taxes of any sort may not prove effective as a means of preventing inflation...
...In Congress it has been argued that a sales tax tends to promote higher prices and thus to stimulate inflationary tendencies...
...In view of the fact that tax rates on lower incomes and the payroll taxes make our present tax structure unusually regressive at the present Jime, we should not add to this burden by increasing regression through sales taxes...
...Many middle class voters support increased taxation on the ground that inflation leads to fascistic attitudes...
...The crackpot fellow-traveler fringe with which every Socialist party is plagued is absolutely without prestige -or influence...
...President «oo=*velt, who hates Lewis'- guts, struck a noble attitude...
...An additional five to eight billion dollars, if needed, can he raised by economies and by increases in the rates of tan personal tax on gross incomes from $5,000 upward...
...The meeting of the Canadian Chamber ¦ Commerce was pessimistic about the pMM**J* of their favorite social system...
...as the only party which is determined to achieve Democratic Socialism inTaheat;----- -" " - - The Labor Scene Lewis and the President — TV*b "Spoiled Children" By JOHN CHAMBERLAIN MOW that the com wage issue has been set-•^t^it^rtglit a* well to look back on the 1<»*- J8JMsP.ll ;«y*m».:t|bat had ¦ practically everybody connected with it behaving like spoiled 4*fij$ren...
...The C.C.F...
...past year...
...Parading under the transparent disguise of their new name...
...It has been Suggested that the method of preventing inflation through higher taxes is about as effective as the use of a tin cup to empty a bath-tub with the'spigots on full force...
...He answers that he has often overthrown a government and if necessary will do so again...
...He said qtifce fortrrrigitly fhat the government of the United States wouhf never compel a man to join a union against his will...
...The Office of Price Administration has not been adequately staffed or administratively supported to achieve its important function of preventing the upward spiral of the cost of living...
...How often...
...It is never possible during a war to prevent inflation exclusively through the use of taxes...
...Although the statement did not name the CCF- nonetheless the prelates' meaning was perfectly clear...
...But the hidden and deferred consequences of the Battle of the Spoiled Children may be considerable...
...Referring to the fears which had formerly existed that the C.C.F...
...As Chairman Dough ton pointed out, the politicians hare to live with the folks back home and they cannot recommend taxes which will prove unpopular...
...And now what...
...is fseed not only w4th> the usual opposition of crric polrtiersns...
...Put him among the other BoUhies and watch him sharp...
...And there may at may not be some more price inflation, depending on what labor does with its exotSS cash...
...Report Prom Canada CCF Opens Drive to Win Natl Election By A. ANDRAS .Ney Leader Canadian Correspondent s/VtTstWAfc—|ji[ Jeptember, the Canadian Con-gress of Labor endorsed the Cooperative Commonwealth Federation as "the political arm of labor" and urged its affiliated bodies to affiiiatS'With the CX-F...
...he has often been in jail...
...frIE Communists are playing a Machiavellian V role with regard to labor...
...We are going to win the war in spite of our fumbling on the political home front...
...Enter the next traveler...
...If I call His Imperial . and Royal Apostolic Majesty a liar without ' quotes I am reminded by the State Department that we must be polite to our political guests...
...Assuming a total national income of $180 billion, a volume bf: consumer's goods amounting to $89 billion, total Federal, State and local taxes of $50 billion, and savings and bond purchases of still another $40 billion, it would seem that the inflationary gap would be covered...
...footbsll...
...The burden of these . increases would probably surpass the increases in the prices of necessities which the poorer people would have to buy...
...The number of affiliated unions keeps growing from month to month...
...This country csn prevent inflation through a vigorous price control program equally supported by all economic groups...
...Been one most of his life...
...He is a dangerous fellow...
...However...
...Unless his neighbor sees the poor pooch first wtien he is opt of luck and has to content himself with a couple of sparrows or songbirds on their way from Northern Europe to Africa...
...From the legal standpoint the "government" had not forced captive mine workers into the union...
...The Interpreter: "He says...
...Ask him whether he is a Communist...
...Under the circumstances it does not seem reasonable to recommend an increase of tax rates from 18 to 21 percent on net incomes below $500...
...As aeaal the amount of taxation and the forms that it will take will not be decided an a "scientific" basis...
...If they do, additional tax receipts of $10.5 billion would not prevent serious inflation...
...All I am saying is that the President did what you can't do with Lewi* and get away with.it Lewis must be deart with firmly from the start or he will end up by getting everything he wants...
...it is true, called a conference1 of labor officials of the federal and provincial departments of labor, but with characteristic myopia failed to invite labor to give its views on a rational labor code...
...He says yes...
...Company unions are increasing in number and...
...Only the most extreme fears of inflation could have induced the Treasury to make these recommendations...
...reformist party...
...gains st tile polls hung heavy in the atmosphere.The labor situation remains tense and aggravated...
...Lay-offs all across the oountry are adding to the disquiet...
...Once having been forcible-feeble vis-a-vis Lewis, the President.could still have saved the day after Pearl Harbor if he had confessed his error and then proceeded to establish wartime justice for everybody, the miners included by tying wages to the price index.' But instead of doing this the "Little Steel" formula was evolved...
...1 j . • ' • * * *1'HB tax problems inherent in the fight over * the Treasury...
...from electing a good-stood mdnstrisl representation to the House of Commons CP spokesmen have announced that they will elect st toast •*© to 90 candidate* in the federal eleicions...
Vol. 26 • November 1943 • No. 48
