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Show M?t: AEEAD 'f by GEORGE S. BENSON r 'Y'VT PttsUeMlH;r:f Cn'Mgc .. - -i. ' ' i Searej. Atims to higher and higher living .-ia"id-ards. whereas a government dominated domi-nated system would shortly begin lowering our standard of living. income have resulted in diminishing diminish-ing returns in peacetime from all income groups earning S-5.000 or more a year. In other words, as the rate went up. the resulting revenue was proportionately less than ihe tax collector might have expected." Incentive Is Key "Tax rates, when reduced." repots re-pots tiie magazine, "have tended to bring an expansion in taxable income and to result in less los of income than the rate cut might suggest." "Clearly, investment is discouraged discour-aged by the present tax system But if capitalism is to work, investment in-vestment in risk-bearing enterprises enter-prises is essential to growth and expansion." It is true that in the last 20 years American industry has expanded. But the expansion has been stimulated stimu-lated largely by the federal government's gov-ernment's huge expenditures on. war. We dare not accept a war economy longer than is absolutely absolute-ly necessary because of the danger of federal government dominance becoming permanent. The transition transi-tion away from this dominance should begin at once. As the shift is made private enterprise can expand ex-pand normally and wholesomely if tax rates are cut so that incentive for investment is restored. Given normal incentive the private enterprise enter-prise system will carry our nation TIME TO SWITCH For the pa:;t 20 years government govern-ment .'-pending on war and defense prvparation has been the major r.iniul-.us for the American economy. econ-omy. In those 20 years the government govern-ment has spent S775 billion, which is 10 times more than the total amount cf-money in circulation in the entire world. This huge spending spend-ing made the federal government a tremendous factor in the nation's economic life. It cannot continue indefenitely to play this dominant role without breaking down the economic and political institutions that have made our freedom and prosperity posisble. Forty years ago the federal government gov-ernment spent two per cent of the national income. Twenty years ago it spent 10 per cent of the national income. Today it is spending 25 per cent. If the people of America were to permit it, this percentage would go on up, and our economic freedom would be correspondingly restricted. Studies have shown that when taxation goes much beyond 25 per cent all freedom is affected. And history shows that a government govern-ment will grow constantly in size and power unless the people put on the brakes. Paralyzing Rates In order to get the big money it has been spending in recent years, the federal government has had to contsant'y push up the rate of taxation. tax-ation. It now has pushed tax rafps j.i o to as much as 92 per cent in the upper income brackets. The svstem levies these high rates on business incomes and then turns around and levies heaw taxes on the same monev after it has ben divided up in dividenr's to individual individ-ual stock holders. The most successful suc-cessful businesses must pay out in federal taxes 9 of even $10 of its profits. This is a ridiculous situation. sit-uation. In the 20 years of big spending, the family breadwinner earning $4,000 a year saw his income taxes jump from $44 to $488 a year. The $25,000 individual incom of 20 vears ago was taxed $2,500; today it's taxed $7,500. In the calendar year 1953. President Eisenhower gets $150,000 in salary, and he has an additional income estimated at $10 000 a total of $160,000: His federal income tax is $82,000. Study Made Tax rates such as these put a heavy yoke on ambition and cripple the profit motive that has sparked our nation's progress. They would be permissible for a short time in extreme national emergency, but otherwise they are detrimental to freedom and progress. The U. S. NEWS, one of the top news weeklies, week-lies, has just completed an intensive inten-sive study of taxes and how they operate to stifle or stimulate the private economy. Here are some significant conclusions: "Steep, progressive tax rates on |