| Show Marquis Margus Childs Tax Boost Next Item On Agenda V WASHINGTON ASHINGTON Continual prodding by congress had a lot lotto lotto lotto to do with the decision to impose the wage and price freeze no now Everyone concerned with the decIsion decision decision de de- de- de realizes that it means taking a big chance For the truth is that machinery machinery machin machin- ery to carry out and police wage and price stabilization is woefully woefully woefully woe woe- fully inadequate A start has scarcely been made at putting together R a staff large enough to do the rudimentary work This means that if the freeze order is to be effective there will have to be wide voluntary acceptance of its provisions in inthe inthe inthe the interest of the nations nation's well- well being and security In other words the outcome depends on self-discipline self and self Just as the freeze order was being issued Vice Admiral John H. H Hoover ret resigned ned as ashead ashead ashead head of the enforcement section of the economic stabilization agency He indicated it was because because because be be- cause of his belief that politics has no place in an organization affecting every American home The already overburdened F FBI B 1 backed away from suggestion that enforcement be directed by that agency But now that the administration tion has taken taen the long and perilous jump into price control there is no indication that congress congress congress con con- gress intends to act with anything anything anything any any- thing like e the essential speed on a front that is just as Important important important im im- Im- Im in the battle baUle against in in- in That is taxation The congress has been here for a month Yet even at atthe atthe atthe the committee level le virtually no action has been taken to prepare the kind of taxation which must come if inflation is to be stopped Precious Time Speaking in Philadelphia over the week end Chairman Thomas ThomasB B B. B McCabe of the federal feder l reserve board said he understood it would be late in the summer before before before be be- fore a tax ta program can be en en- acted To wait that long will willbe willbe willbe be as McCabe pointed out to throw throwaway away precious time Everyone knows that taxes are going to be higher John Q Citizen is told that on every hand But human nature is so constituted that most of us will go on living in a wishful never- never never land until we are told exactly what we have to pay To prolong that unreality for another six months will be reckless folly It will leave money in peoples pockets with which they can thwart and defeat the price freeze Passing the Buck When it comes to blame for delay in applying the taxes necessary to pay for the defense program both congress and the treasury are adept at passing the buck The treasury has not yet sent up its recommendations and the house ways and means committee traditionally waits to hear what the administration wants in the way of taxes This however is no real excuse for delay since the committee more often than not disregards the treasury's recommendations In ten days Secy of the Treas John Snyder will go hO up to capitol hill to present a com- com tax program that will contain as one treasury expert put it everything but the kitchen sink It is likely to include a broad increase in the excise levies now applied by the federal government to luxuries such as furs and perfume If one group in the treasury prevails this will be virtually a federal sales tax A strong argument can be made that enough revenue cannot be raised from income and corporation taxes even if these taxes arc are hiked above the levels of World War Var II and that therefore something like a sales tax is imperative Little Excuse After the treasury presents its program congress will have little excuse for delay There is no reason why a tax program could not f Se DC e enacted and sent to the White House in six weeks to two months if the will to do doso doso doso so is strong enough Customarily at prolonged tax hearings every special interest argues why it should be ex ex- empted But if inflation is to be bc averted there can be no exemptions exemptions exemptions this time Taxation must hit hard everywhere The price and wage freeze must be supplemented supplemented supplemented supple supple- by far higher taxes than we are arc paying No one likes cs that prospect Itis It Itis Itis is grim to the point of threatening threatening threatening threaten threaten- ing a change in our way of life But the alternative is growing inflation The wage price-wage freeze can c check h e c k the inflationary spiral but it cannot stop it The administration has made the first move and now it is up to congress to take the second and equally essential step Copyright 1951 United Feature Syndicate Inc |
