Indianapolis Times, Indianapolis, Marion County, 27 August 1936 — Page 4

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By Uinited Presa

: BUFFALO,.N \. Y., Aug. 27. They are the same our great Pein : : - 3 ; ciples which a prudent, foresighied Gov. “Alfred M. Landon, Re- government must follow if it .is to

- publican candi idate for Presi- | meet the financial demands made

: A : > the handling of hi. own finances. corporations have not been enough | consequence, to cover the waste and extrava-|

gance of this Admifistration. What |

‘is the result?

Those -of our citizens with small

incomes have had to pay an in-!

creased proportion of the cost of the Federal government. And. just how have those small

incomes paid more? When we con-

sider the government as a whole— Federal, state and local—we find

| that they have paid in a thousand

d k \ £1 upon it by an increasingly complex -..dent, spoke last ni ight as. fol- | civilization. Jows: ; Now let us examine each of .the © Tonight 1 want to talk about thei! four principles in turn: financial problems of our Federa The first is the question of guar iad hy ia £ their effect BDe ing and preserving the source of | government and their effect upor| jhcome. | Pundamentally this is a | “use as individuals. In other -words, | question of the fairness of the kind I'm going to talk about our goy- Of taxes that are levied. Are they | ernment as a spender of part of direct taxes levied according to our | v #1 3 1 ill Ji ail i t

apility to pay, or are they indirect

the money we work so hard to edarn

taxes levied without regard to our |

. This is a proper approach Jo ihe. ability to contribute to the support | question, in. my judgment, because of the gqvernment? - the government has no monew ex- :

Corte

~~ of government

time the government * dar, that dollag will

cept.the money There are sor ne people

it ts fro 1 < : Eels Yom um FAVORS DIRECT TAX

who seem

ee he that ti

it does wt

money. This is what } *major portion of its revenue from it issues paper money or sells bonds. ' direct taxes levied on the net inIn prineiple, this is similar to what, comes of individuals and. corporaWe do when we open a charge ac- | tions. When this is done, every one "count at a store. | We get some ifung pays ‘his fair share and knows just r cl i to pay f it 1 ‘ : . Bow and promise lo pay for it lafer. .jow much the goverdment is cost--II' we charge more things than me hi Ii xed {1 : : I 1 J y S AY can pay for, our promises to pay ing Mum. i3Ve Workec constant become worthless. "The same is true for legislation in Kansas to prevent

concealment of the cost of So, if we are to be realistic in : our thinking about government finance, we must think of the government as almost a, memher of our family—a member ta whom day by day, week by week, year “by year, we must give part of what . We receive in puri pay envelope or |. part of the crops we raise, We must

ment. On the other hand,

~is obtained from indirect and hidden taxes—taxes upon such things as food, clothing, gasoline and cig: arets—then upon thode of small income and the codt of ‘government is hidden. In this case, salaried worker, small business man, | pay most of ‘the bill.

remember that every spends a dolhave to be paid iby tis or we must pass the debt on {te be paid: by our children. "No parents like to leave their children 8 heritage of debits and mortgages.

the farmer and the who: have ‘to

Now, see just who is paying the cost of | our government,

But the creation of a staggering ? - public debt closes the door of op-|; What do the figures of the portunity to the youth of America, | J1reasury Department show? They

show that in the year 1932 59

just ag certainly as a staggering pri-

vate debt. We must face the issue | ¢ents out of every dollar collected squarely. Tlie present Administra-| PY our Federal government, was tion's daily. mounting deficits are |. Secured [from diréct taxes. The closing the door of opportunity to| other 41 cents was collected from your children and to my children, | indirect and hidden taxes, paid, == “so : for -tlye most part, by people with incomes of $25 a- week, or less. . PRINCIPLES OF FINANCE That was for 1932. : Four vears later what do we find? We find th4t 51 cents out of every We must not lose sight of the | 3 :

dollar collecied by the Federal gov-

fact that a public: debt is just as | ernment cage from hidden

taxes.

fnyen = Hability io each and every | In other words, the shage of the cost ay Jal fae & private Gebt. The | of governmént falling mainly on \ n a princip.es ol _BOVeIn-- those with! iicomes. of $25 a week or ment finance are exactly the same | jess has Incteased 25 per cent durcommon sense principles that We .o the ‘thrée years of fhe present follow in the handling of our own NYE

Administratipn. They are paying far more than their rightful share of the cost of government. ‘Any housewife can tell

family finances. So long as our government fol-| lows these principles our people will

_ prosper. They will be able to : = weather depression, . drought and | You this, because the housewife other disasters. But if our govern- | KNOWS, beiter than anybody’ else, ment disregards these principles, it -1ow the mounting cost of living is " squanders: our resources and de- | curtailing | the, comforts of the strovs the -public credit. | home. And you can not long fool Now, what are these principles? | her with the preiense that only the

_ in the habit

for the rainy day.

In broadest jerms there are four of | rich will pay.

them. - The Sovarnment _must

guard

-and preserve its source of in- CHARGES EXTRAVAGANCE tom. . ] The government must make This increase has come . despite |

sure that it gets a dollar's worth for every.dollar it spends. The government mist not zet of spending more * than it recoives. The government must prepare

| ttons have been raised. [despite the fact that they are pay"ing far more actual money into the | Treasury than they did in 1932.

In otHer words, ‘the larger payments by well-to-do individuals and

“These. in brief, are the foug great | Principles which a prudent; fore- | sighted head of a family follows in |

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if the major | portion of the government's income |

let us turn to the record and | eral.

the fact that the tax rates on, in-! | comes of individuals and corporaIt has come |

io believe 1 governmen £i can = a €reate money, This is not true.: All It has always been my belief ‘that ! “it can credte are promises to io the government should raise the

govern- |

the main burden falls |

it is the wage earner, the |

different ways. ample. When we buy a loaf of bread for 10 cents we pay about 8 cents for the bread. The other 2 cents goes for taxes. If we smoke a package of cigarets a day, we pay $22 a year in taxes. So it is all in our spending. We

can not buy a stitch of clothing | without the government taking in|

taxes a part of the money we pay out: food at our grocery. store without

being taxed to support the govern- |

ment, 3 We can not go to a movie, or to a baseball game, or ride in an automobile without this invisible arm of government and taking a part of the money we spend.: This has been a growing tendency of government in recent years.

just as truly as they are in the sales tax on gasoline.

ONE-FIFTH FOR TAXES

Théy cost as much,-and are just as real, as they: would be if they were taken right out of our pay envelopes. These hidden t#xes—Fedstate and local—amount. to

| about 20 cents out of every dallar |

we spend. In the case of the Fed-

| eral government alone they amount { to more than $5 & month for every

| ment’s financial

family, It is in this way that the governpolicies affect us as individuals,® The more the government wastes, the more money it | has to take from us. The more it takes from -us the less food and | ¢lothing we can buy for ourselves, | the less we have for the education of our chjldren and the ° less have left to set aside for meeting emergencies—for the building of homes, for improvement of farms, | for the construction of factories.

In short, every dollar that the government {akes from us in taxes

« means’ just one dollar less for us

—a dollar that we might use to buy “things, the production of which would create jobs. There is no better illustration of all this than the so-called surplus tax bill jammed through Congress this spring. One practical effect of this tax law is to prevent a corporation using its earnings in the business. It must pay them out in dividends. In

Take bread for ex- |

We can not buy an ounce of |

tax | reaching out]

we |

earnings no provide fands for making needed improvements, for replacing out-of- | date equipment and for additions to i the, plant. Now what does this mean to a man looking for a job? It means | less chance of finding work. There will not be those ‘jobs that come from the” gradual growth of our small businesses, from the replacement of equipment, and from plant expansion.

RESERVES BANNED

| | 54 1 i

| have jobs the effect of this tax law is just as bad. Because of this legislation it is no longer possible for a business, except at unbear- | able cost, to build up a reserve for meeting future losses. In other words,

serves, is put on a hand-to-mouth basis. | This means that it can exist only so long as it can make a profit. Once {trade slackens to the point | Where the business can not make a profit; it is lost. Not having a reserve to fall back upon, its lot is | bankruptcy, and the lot of the

Most of these taxes, it is true, are} Workers is unemployment. .

‘hidden so deeply that we ‘can not see them. But the taxes are there.

There is one other point in this connection I would like to mention. During the depression, pri- | vate industry paid out more than twenty billion dollars more than |" it took in—twenty billion dollars | .that helped to cushion the depres- | sion and keep employees working.

This | expenditure was possibly only because of reserves created | during prosperous years. .

Yet| by careless, ill-advised tax | legislation this present Administra- | tion is, in effect, forbidding a res- | toration of the reserves exhausted | by the depression. The sponsors of: | this tax law may have thought that it was a smart way to appear to “soak the rich.” Actually it has no relation to “soaking the rich.” What it does is protect the big fellow who still has | & reserve, and tie a millstone around | the neck of the little, fellow. This | legislation prevents the small business: man from expanding ‘by the usual method of plowing earnings | back ‘into his organization. | It is making harder and harder | the re-employment of many of those | at present out of work. And it is | jeopardizing the job of every man | and woman who today is working for a [business corporation.

COCK-EYED LEGISLATION

of tax legislation ever imposed in a modern country and if I am elected I shall recommend the immediate repeal) of this vicious method of taxation.

| This is the most cock-eyed piece Let me add, the revision of this |

longer !

For those workers who already |

a business or- | ganization, unless it already has re- |

bill is only one of the changes needed in our tax system. Our whole tax structure, Federal and state, needs overhauling. This leads us to the second principle which I have listed—that we must make sure that our government gets a dollar's worth for every dollar it spends. By that I mean that we must get our money's worth for the taxes we pay. We must not lose sight of the fact that it is our money the , Administration is wasting. : There are many cases in which it is quite obvious that the country. as a whole, gets more for the dollars spent by the government than it would if we kept the money and spent it ourselves. I refer to such ‘expenditures as are necessary | to provide adequate protection, to { maintain our courts, and to enforce our laws.’ These expenditures are essential if we are to live in an orderly society. They help us to maintain our political and economic liberties and to enjoy the fruits of our own labor. For these expenditures, if they are made efficiently and with economy, we do get a dollar’s worth for Svery dollar we spend. Until’ a few years ago, this type of expenditure made up the bylk of our Federal expenses. Under the present Administration, this is no longer true., Today, the Administration is spending mney for almost every conceivable thing.

It is spending even for the necessary things in ways we can not afford—in reckless ways which are bevond our means—which would never appeal to any one who has had to work for his money—to any one who has had to face: the problem of making both ends meet—to any one who has had to see to it that his bills get paid. The Republican Party believes in being, generous in the spending of money for relief and emergency purposes, but it believes that. these funds should be spent without waste and absurdities.

LIVING BEYOND INCOME

This: brings us to our third prin-

rest of us, should not get the habit of spending more than it receives. The present Administration [seems to have entfrely disregarded this

principle. It\is paying half. of its bills with. HR money. The truth is we are living in a fool's paradise—far beyond our income. We all know: this can not continue indefinitely, because we have known persons who have tried it. We have | seen. them go along for a while with apparent ease, buying first ‘one thing and then another which they could not afford. And then we have seen them wind up “on the rocks.” Whenever a government continues

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ciple—that the government, like the |:

to live beyond its income, it will, suffer the same fate. For a while there will seem to be no end to |

can spend, but in due time the day of reckoning must come. Some one, sometime, will have to pay the bill. How is it that the government has been able to follow such a: will-o’-the-wisp financial policy? It is because the public has) not been properly informed. ~ We have been told that all this extravagance will he paid for by “soaking the rich.” This is not possible. The figures of our treasury department show that if we confiscated all incomes in excess of $5000 a year, it would not be enolgh to pay for the cost of our Fedéral government. - Do not think we have been gétting something for nothing as the | result of the huge government | spending of the past three years. | Some of the debt, it is true, has been | shifted to the wealthy, but the |

principal and the interest, is being | charged up against. ourselves and | i our children. There is no other group to whom we can shift the burden and it is a | burden that gets heavier and heavier | | every. day that the present wasteful policies of the Administration are continued.

£ KEEP GOOD CREDIT

The final principle the government must follow is to prepare for the rainy day. In our own families, we all recognize the importance of | doing this and we try to build up | individual reserves.

equivalent of these reserves is the ability to. borrow. It protects this ‘ability by keeping its financidl house ‘in the best posible order. ‘How ‘does it do this? In periods of good times, the -government pays off its debts, so that if necessary it will be able to borrow again. It

keeps its taxes as low as possible, so that there will be a reserve of taxpaying. ability which can be called upon to meet emergencies. It permits its citizens to prosper,

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. so that they will not have 10 go to] | the government for aid at the first | breath of ill-wind. These are the policies to be followed in good times. | In bad times certain changes become necessary. But a financially responsible administration never loses sight of the fact that it acts-at all times as a trustee of ithe people. It watches every dollar it spends | to be sure that it is used in the way which will do the most good. It bor- | rows ne more than is absolutely

poverishing everybody else.

to these policies.

simple, henest bookkeeping. We must return to the principles .which we follow in the handling of our own finances.

This (will give us-a governmen ablé tor meet every reasonable de mand made upon it; a governmen

day, our children will be helpless should they be called on to face an emergency. { In ‘my judgment these are the { common sense principles that: our Federal governmént should follow. Unfortunately they are not the principles which have been followed | by the present Administration.

needs that arise from any emer gency: a government that will leay our children a fair chance to solv the problems that arise in thel time.

That is the kind of governrien

of —unemployment by giving ou workers real jobs at good pay. know that accomplishing all th is not a task that .can be com pleted overnight, such . promise. , We have huge re sponsibilities that we must continu tp meet. | courageous country it is a task tha

to give the whole Treasury away, trying to enrich -everybody¥ by im-

The time has come to put # an end

We must establish a system of

f i * Tr necessary, for it knows that if we | fully prepared to assume ts in- . exhaust our borrowing capacity to- | creasing financial responsibilities; 1 «| a governnient able to meet the

2 e

we must have if we are to get rid

F §

and I make no

But with the help of a

t y

The latest assurance volunteered |

only 13 days ago, repeats the old |([ { story—“business is improving, rev-! | enue increasing, .no new taxes will | | be necessary to balance the budget.” | How can any one really believe this, | j= the face of the record of the present Administration?

| It has piled deficit upon deficit.

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until today the total is equal to] | two-thirds of the annual income of every man, woman and child | in the United States,

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It has increased our public deb | i

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