Show alio to law of diminishing returns applies with full force to industrial taxation ones once pass i certain lovel loicl tile springs of in vesti told employment dr dry up industry falters tox tax revenue itself ell aind a tile tax altor it ally defeats its lt own pur purpose popo A largo large etui it power utility recently presented ft a very important arlet OR on taxation to tho house W ways and meana COIl commit lItt too it pointed out that utilities which are stringently in every phase of 0 operation by government aro are always logallo limited to ii a vinall gnall return on their iti invested vested capital they do not and cannot have truo true excess profits and in fit any event their F so o called exec excess cannot accurate ly be determined until normal tareq and surtaxes sur taxed taxes aro deau deducted eted front their revenues yet tho pending tax bill as now proposed would compute t li it 0 profits tux tax before tile tho deduction deduc llon of normal earp taxes it 10 nn all Inter interesting asting fact that between 1930 and 1941 this tax burden increased by more than per pei cont while its gross revenues by idso than 10 per cent and tho the return paid the com panya stockholders lihs as an it 11 result re boon been reduced to a very low level all busi businesses nAses largo and small are facing 4 similar problems pro blema in many cases cages tho the threatened burden of taxation will be greater than tile the ability to pay fv even n while industrial output due to the war IN IH at rn an nil thue high industrial not net profi profits tg with few exceptions oro are small and are declining this aphis la Is not got a plea for imaging making a palo allo or of money out of tho war the american people will not and should not permit oring in any ally chapo ninn mannor nor or form hut but tile tho hard fact in iii unit that industry and tile the millions of ordinary hoople who own industry roust must nikko conle return it they aro to koop hoop in bUsI business noss anil and progress ess anti and another in othur kinrd hai d tact fact la Is that aits mla applied appl tod tile tho profits tax enn virtually ruin a largo bohmont ot of american industry to tho the actual detriment or 0 tho the war many tin an hns has observe 1 od d that wo havo far refused to filco faco tho in making up our ott tux tax pr program that we have gono gone ahead on oil tho idoa idea that wo we can soak business awl and capital il moro more anti and more inoru that thai lei tile most ngoat tragic of economic fal laches for inequitable taxation will drain tho the life lifeblood blood from american industries which are most vital to tile winning ot of tile the war |