OCR Text |
Show TAX EXEMPT SECURITIES Continued issuance of tax-exempt securities by municipalities and the various government bodies, including includ-ing the federal farm loan bonds, is a menace to the credit of all political poli-tical sub-divisions and such a policy is leading towards property confiscation confisca-tion and materially delaying the industrial in-dustrial progress of the nation, according ac-cording to Representative Louis T. McFadden, chairman of the house committee on banking and currency. "The creation of two classes, one free from the burdens of taxation, and another which is forced to bear the burdens of which the wealthy are relieved through 4ne purchase of tax-exempt securities is a violation vio-lation of social justice, which is crystallizing crys-tallizing in broad public opposition and discontent as the issuance of tax exempt securities expands," said Representative McFadden. "In the last few years we have seen the personal per-sonal wealth of the country so rapidly rap-idly segregated'into the tax free cla that whereas the taxable income of the individual taxpayers, under the federal law for. income taxes was $992,972,985 in 1916, the amount decreased to $731,372,053 in 1917, and to $392,247,329 in 1918. It is a safe conclusion that they have converted con-verted their wealth into tax free securities se-curities so- rapidly that at a similar rate of conversion they would be scot free of all taxes ill 1922. "It is stated that more than $1,-000,000,000 $1,-000,000,000 of state and municipal tax free securities were .issued in 1920. If those securities! are held by the wealthy whose federal income tax is at the rate of 7 3 per cent the total loss on this item is over $35,-000,000 $35,-000,000 On a conservative basis, the government alone, is now losing annually from $175,000,000 to $200 000,000 on tax exempt bonds already issued." |