Show TAX government BONDS the supreme courts decision that government employed emp loyes may be taxed in the opinion of 0 a gumbei of f well known lawyers opens opens tha th way to stopping the issuance ot of any additional tax free government to 10 stopping the issuance of any additional tax free government bonds if congress will pass a bill to that effect according to the tha legal experts the principle is is identical I 1 and there is no constitutional obligation which holds thit government securities must always a be tax free various high government officials including several presidents have at times spoken of the desirability sir ability of taxing government bonds at present government is sues are a haven tor for those who wish to escape taxation of income in many cases where large sums of money are involved the n ne et return to the investor on a gov crement bond paying three per cent is larger than on a private security paying five or six two unfortunate results follow this first the nation is deprived of tax revenue from the billions of dollars worth of government issues now outstanding secondly the attractiveness tr of tax free bonds deprives private industry of capital it sorely needs certainly there is no reason wily why a man with an income in five figures from government bonds should entirely escape taxation while a man with an income from private sources is taxed to the hilt and as matters stand now when private industry goes into the money market for the capital needed for expansion and improve ment it cannot compete with the tax free issues more and more of the nations wealth is going into nonproductive non productive channels at a t the expense of private employment and opportunity the court decision making possible the taxation of government workers on the same basis as private workers it a long step in the right direction the next step should be a refusal by congress to permit the issuance of any more tax free securities |