| Show MARQUIS CHILDS Political Expediency Blocks Blocks' Needed Much-Needed Tax Reforms WASHINGTON The The other day a middle western manufacturer manufacturer manufacturer was talking about the problems problems problems lems he lie faces in this postwar period He is a partner in a family business with a n pay roll rollof rollof rollof of about 1000 and lately he has been under great pressure to merge with one of several large corporations He likes his independence Merger is the last thing he wants Yet he concluded gloomily ly that he might have to give in inand inand inand and accept one of the very handsome handsome hand hand- some offers that have come from the big corporations A loyal and arid active Republican this middle westerner d defended fended the proposed 20 the across board income tax cut It is essential essential essential es es- es- es he argued in a sincere and somewhat aggrieved fashion to give some relief to the man manIn manin manin in the upper tax brack brackets ts He HeIs Heis Heis is being squeezed so the argument argument argument ment ran beyond endurance and andone andone andone one result is surrender to the insistent pressure to merge and combine In the course of the conversation conversation conversa conversa- conversation tion it came out that what this independent Independent- Industrialist really feared was the inheritance tax He foresaw that his d death ath might force the sale of his stock in order to pay that tax This In turn might mean loss of ot control of the company any on terms extremely extremely extremely ex ex- ex- ex adverse to the family and to his heirs So Much l Depends' Depends So much depends said the aggrieved industrialist on the interpretations of the Bureau of Internal Revenue in Washington For example I ought to be able to sell my stock pay the capital gains tax of ot 25 o and thereby accumulate sufficient l 11 liquid i quid quI d capital to make it possible for formy formy formy my heirs to meet the inheritance tax But Im I'm not at all sure I can do that under the regulations regulations regula regula- of the internal revenue peo peo- This discussion points up the process of merger the merger the big f fishes swallowing the little fishes fishes- that has been going been going on at an ever accelerated pace since the end of the war But it points up even more sharply the crazy- crazy quilt nature of our federal tax structure which like Uke an idiot Topsy has just grooved shooting shooting shooting shoot shoot- ing out tentacles s here there and everywhere F D R Saw Need Periodically in the long since vanished days of the new deal the subject of taxes would come up at President Roosevelt's press conferences He would lean back and talk talk learnedly about the need for a scientific overhauling of the whole tax structure local state and federal Such an overhauling overhauling over over- hauling he would point out was long overdue But there was always an election election election elec elec- tion just around the corner And so the overhauling was postponed postponed postponed post post- from year to year Today that overhauling job is far more urgent than it was 10 years ago Yet now there is another another another an an- other election just around the corner and the eager Republicans cans are trembling like a bloodhound bloodhound bloodhound blood blood- hound on the leash in sight of long deferred victory It seems fairly obvious that the 20 the board tax cut is bait for that election It Itis Itis Itis is a present held out to my friend the middle western manufacturer manufacturer manu manu- who has been feeling neglected and put upon through the long years o of Democratic rule Quite understandably he would like to take this present while the taking is good But if he is wise he will look at this gift twice and then three times before before before be be- fore he begins to cheer Might light Be Illusion It might give him a temporary satisfaction the satisfaction the illusion that his problems were being solved This would however be only an illusion and a dangerous Illusion The only real solution is a thorough overhaul o of the jerrybuilt jerrybuilt jerrybuilt jerry- jerry built federal tax structure and particularly an analysis of its relation to state and local systems systems systems of taxation That kind of solution wo d take patience skill and a careful regard for the thelong thelong thelong long term rather than the short term effects of federal taxation You find little evidence of any such serious intentions in this Republican congress congress As in other departments notably that of national national national na na- na- na defense the idea seems to tobe tobe tobe be to pay off oU some obvious campaign campaign cam earn debts on the score of economy economy economy econ econ- omy by cutting the taxes any old way and then to sit tight for the next election That is dangerously short short- sighted It makes Republican expediency look very much like Democratic expediency the difference difference dif dif dif- ference being that the bait is held out to another group this time This would seem to give us no chance at the kind of reasonable orderly government we have a right to expect |
