OCR Text |
Show NO ALIBI FOR CONFISCATORY TAXES. The best way to measure the burden bur-den of taxation is to relate it to the national income. The amount of tax the nation pays is principally important impor-tant in the light of the money we have out of which to do the paying. In 1923, the national income was over $69,000,000,01)0, and taxes took $7,200,000,000. During ensuing years, that percentage was relatively constant, con-stant, and in our peak income year, 1929, cost of government absorbed but 11.8 per cent of our income. In 1930, our income dropped to $70,000,000,000 from the high of $83,-000,000,000 $83,-000,000,000 establised the year before, be-fore, while taxes rose and took 14.6 per cent of all the money we earned. In 1932, taxes took 20.7 per cent. Conclusive figures for the years since are not available but best opinion holds that government costs amount to more than 25 per cent of the national na-tional income. What this means is that government govern-ment has utterly failed in adjusting its finances to fit current economic conditions. Every business and every individual has had to do that during depression they have pruned budgets, bud-gets, cut out luxuries, and made income in-come and outgo balance. Government has continued to spend more and more and the results are found in industrial stagnation, increasing unemployment, un-employment, delayed recovery. It is true that government must make certain extraordinary expenditures expendi-tures in bad times, in order to aid the unfortunate. But a small proportion of total governmental, costs is used for such pruposes and "relief" is no alibi for government extravagance and experiments. Necessary governmental govern-mental functions must be maintained, but the frills must be eliminated. |