Show I r r. The Tax Message CHIEF objectives of the tax program submitted submit- submit vJ ted in President Roosevelt's special message message mes mes- sage are Equalization of federal taxes by ex expending extending ex- ex tending pending ending the the principle of ot levies graduated in proportion to the ability to pay and in proportion proportion proportion tion to the benefits received progressive lightening lightening light- light ening of the tax burden through reduction of the fhe he national debt by greater levies upon inheritances ances ances legacies and g gifts ts broader distribution of wealth and purchasing power through the taxing powers breaking up hoards by taxing wealth invested in tax-free tax govern- govern nent securities a balanced budget through imposition im im- im- im position of ot greater taxes abolition ab o of of unnecessary unnecessary sary ary holding companies in all lines of business through taxes that will compel simplification pf f corpor corporate te setups and removal of opportunities ties for evasions The president bases his recommendations tIp Upon tipon on the principle that if a government nt is to tobe tobe tobe be prudent its taxes must produce ample mple revenues revenues rev rev- without discouraging enterprise and if it is to be just it must distribute the burden of taxes equitably Only champions of special privilege will deny the desirability of these objectives or r challenge challenge challenge chal chal- lenge the justice and fairness of the principles enunciated Controversy will arise however round the proposals set forth to attain the ends sought This will especially be true with re regard regard regard re- re gard to unnecessary holding companies What are unnecessary holding companies Investors as as well wd as officers and directors will have in intense intense intense in- in tense concern and properly as to how the an answer answer an- an Iwer is to be arrived at and by whom If there is such a thing as unobtrusive emphasis emphasis emphasis em em- the president has employed it with politic politic poli poll tic adroitness to give notice that he purposes to move within constitutional limits and to make clear that in recommending a constitutional amendment he but renews recommendations of his predecessors that the tax exemption on government securities be lifted Regardless of relative importance the political political political cal significance of the message emerges to attract attract at- at tract momentary interest as great as if not greater than the economic implications The economic issues overshadow all others as the proposals are pondered for innovations are Suggested which will vill provoke challenge and Debate At the moment the two individuals Who are probably in the first stages of recovery from the shock delivered by the president are Huey Long and Father Coughlin Instead of their demagogic and abstract about sharing haring the wealth and swatting corporate power the president proposes a concrete program program program pro- pro gram around which intelligent argument may proceed The Detroit priest and the Louisiana clown are left with nothing to talk about Although his earlier expressions forecast de departures departures departures de- de in taxation and although the nation was prepared to expect liberal proposals it vas set to receive anything quite as revolutionary as the president confesses these recommendations recommendations' are Close watchers however however however how- how ever ever could have noted that Secretary Morgen- Morgen thau thau and Marriner Eccles undoubtedly with administration consent have been pointing in inthe inthe inthe the direction of something of this sort for several several sev- sev eral weeks Unless political expediency dictated dispatch of of the message at this time it is difficult to understand its coming when all the legislation which congress might reasonably be expected to lito to dispose of is already going through the mills mill some some of it slowly and some of it stalled by con con- The congress congress and and the president president- should reflect upon the danger of haste in the thelast thelast thelast last session The president as he said felt com com- to sign defective and poorly drawn laws because there was no t time me to perfect them Legislation l to effectuate a tax program as broad broadas as as the president suggests must have adequate debate ample time for the nation to weigh possible consequences and piercing scrutiny to assure validity should it go before the supreme court A wholesome effect of the message will be beit that it will compel realization of the national fiscal situation We Ve are under a mountain of debt that must be paid and it can ean only be paid out cut of the pockets of the people This may cause many to pause in their enthusiasm for continued continued continued contin- contin heavy government expenditures |