Show GRASSROOTS Lets Let's s Hope Economists Figured Income Accurately By Wright A. A Patterson WHAT PERCENTAGE of at each TV dollar we earn during the next fiscal year beginning July 1 I 1951 does the President ask congress to take away from us as federal taxes I to pay for rearmament and the expenses of the government That ThatIs Thatis Is an Important question to each American I The President asks for a tax that will produce a total of 71 billion That Is the highest total amount the nation has ever been asked to toI pay but the President estimates I that the total earnings of Americans for the next fiscal year will be not less than billion and of that amount we will pay payout out of each dollar we earn cents centi As a tax that is mild mUd compared with what we were charged in 1945 when the government took out of each of our earned dollars and at that tha t twe we were a long long way from paying paying paying pay pay- ing the war cost of that year and added more than 70 billions to our national debt T. T n. n ru Juby uty Iu me u A- A CI is 13 3 that wo we pay the cost of rearmament rearmament rearmament rearm rearm- ament as we ve go and not In Increase lucrease lu- lu crease the national Indebtedness Indebted Indebted- ness and he figures a tax of or less than 30 cents out of each earned dollar will accomplish accomplish ac ac- ac- ac that result What the total may be depends entirely on the total of the national income the earnings of Americans as individuals corporations stockholders stockholders stockholders stock stock- holders or bond holders farmers I U If the President is right in his estimate es es- of a 8 national Income of I billion that cents out of each dollar will produce the 71 billion he says must be raised It all depends depends depends de de- de- de on what we collectively earn during the next fiscal year The Pr President presented to congress congress congress con con- gress a statement of what percentage percentage percent percent- age of each earned dollar had been paid to the government as taxes in other years in 1939 we paid as taxes cents out of each earned dollar in 1945 it was In 1948 it was 16 in 1949 in 1950 in iii 1951 Except for the year 1949 the tax rate on each earned dollar has not fluctuated as radically as ns we have thought but the number of dollars we have earned the total of 01 the thc national nation nation- al annual income has fluctuated fluctuated flue flue- greatly if the Presidents President's Presidents President's Presidents President's dents dent's figures are correct and his figure for Cor the next fiscal year is estimated at the point of 2 10 billion Let us hope we make It and if we do dowe dowe dowe we can easily afford to pay the out of 01 each of those dollars dollars dol dot lars tars keep the nation out of the red and still pay the rearmament rearmament rearmament rearm rearm- ament bills The President gave to congress some Idea as to who would pay the additional taxes He would collect 35 per cent of it from individuals that is from workers farmers professional people and merchants twenty-seven twenty per cent from cor corporations corporations 11 per cent from tram additional addition addition- al excise taxes and four per cent from customs He did not say but buthe buthe buthe he undoubtedly knows that the 27 per cent collected from corporations corporations corpora corpora- will be paid paia by the custom custom- ers The corporations will add that 27 per cent to the price of their products and the purchaser of their products will do the paying The President also offered a chart showing for tor what he proposed to spend the tax dollars he was demanding Fifty eight cents of each dollar would go to rearmament 17 cents to the normal expense of the government 10 cents to meet our international obliga obligations eight cents for interest interest interest inter inter- est on our national debt seven cents to the veterans administration It can ran all nn th h. h u n provided congress passes the needed tax legislation and the Presidents President's advisers are sufficiently sufficiently good at their economics to not overestimate the national nation nation- al at income for the year beginning beginning begin begin- ning next July 1 If that estimated estimated esti esti- mated national Income is more dollars than we ve Americans receive receive re re- re- re the President will not Dot have as many dollars to spend as he be wants The President has Intimated that In addition to the 71 billion he wants for next year he may ask asic congress for another with which to balance the expenditures expendi expendi- tures tunes for this year so as not to have to add that to the national debt If It those economists nave over-guessed over the amount of ot our annual annual annual an an- nual earnings we may have another another another an an- other tax increase in 1952 The above is the tax picture U the e President painted |