Indianapolis Times, Indianapolis, Marion County, 20 January 1939 — Page 4

an to Tax Bonds Df UU. S, Faces 308 Potential Enemies

Sengtors and Representatives Who Pay Income

Levies in Own States Object to Being Assessed Also on Government Securities.

(Editorial, Page Eighteen)

By LEE G. MILLER Times Special Writer

WASHINGTON, Jan. 20.—There are 308 potential obstacles on

Capital Hill to the President’s plans for dépriving Government salaries,

ering

taxes of their own.

with income from Government bonds, of tax exemption. . The 308 obstacles may be divided into two groups: .I'The 62 Senators who represent the 31 States that have income

2. The 246 members of the House®

from those 31 states. : Each of the 308 is paid $10,000 a year by the Federal Government (to say nothing of such perquisites as a 20-cents-a-mile travel allowance tp and from sessions). These salaries now are subject to Federal income tax but, not to state tax. Under| the President's plan they would | apparently be subject to both. Consider the case of a Congressman from Indiana. Assume that he has a wife and two children, and that his $10,000 salary is his total income. He now pays about $343 in Federal income tax. If subject to the| state gross income tax, he would have to pay $90 in addition. | . That might not be so bad, but if | he is from New York, the state tax ' would be not $90 but $312. That| sort of argument is wont to carry more weight in Congress than weeks of spellbinding. Aside from this. pocketbook factor, there are men on Capitol Hill— notably Senator Borah (R. Ida.)— ‘who cantend that Congress has no Constitutional right to tax state salaried or to permit state taxation of! Federal salaries. Senator Borah] holds that the 16th Amendment " was depling with something entirely “different when, in authorizing a Federal income tax, it specified that income “from Whatever source derived’ could. be taxed. Some lawmakers, also, may be influenced by pressure from state officials, banded together in the “Committee on State Defense.” This group is prepared to resist ' the removal of tax exemption. Its spokesmen will testify Feb. 7 be-

fore a| special Senate committee headed| by Senator Brown (D. Mich.).| “But [the President has an immense array of expert opinion, both economic and legal, on his side.

NEW OFFICERS OF ORDER INSTALLED

Riley hapter, ier A. § H. E. P. A. To yponsor Convention.

‘The James Whitcomb Riley Chaper, Orfler of A. H. E, P. A, will Jsponsor| a convention of State chap- | ters of | the order here in June, it

a Ss in Castle Hall. are: George Groulis, presiphn Cherpas, vice president; Cafouris, secretary; George Georgegpoulos, treasurer. Members of the| Board ‘of Governors: are: - Janes Angelo, chairman; James Vephn Castas,’ George Pnadell, filson, Chris Georgepoulos, Marinos, James Alexander n Costa. Korobtes of Mishawak,

| HUMAN WELFARE

dored by a nun a number of civic | the first Marion County nce on Human Welfare will | Jan. 28 in the World War

2 Sanitation, security and

ROOSEVELT GRIP SEEMS SLIPPING

Last Two Years of Second Term Begun With Many Democrats -Wavering.

WASHINGTON, Jan. 20 (U. P.). —President Roosevelt's second administration, marked by explosive break of the New Deal-Democratic front, is two years old today. Mr. Roosevelt—the winner in 46 of 49 states—assumed office for a second term at a rainswept inaugural Jan. 20, 1937. Within three weeks Mr. Roosevelt proposed reorganization of the judiciary and began the battle which split his party wide open. This second anniversary is being commemorated in Congress by a substantial Democratic bolt on issues involving spending, labor policies, relief administration and New Deal appointees. Party troubles were aggravated. by the 1937-38 depression which wiped out most of the first Administration economic recovery and only now is being reversed by a tremendous shot-in-the-arm of renewed Federal spending. Oustanding among New Deal achievements has been a continuing improvement of relations with South and Central American countries, despite problems arising in Mexico from seizure of American agricultural and industrial property: Secretary of State Cordell Hull has just returned from the Lima conference with commitments from all American republics which the administration believes establishes a substantially solid front against European totalitarianism. The President now has aban-

'doned all phases of the disarma-

ment program developed by his three Republican predecessors and is building for land, sea and alr defense. Front rank problems at home in-

ment. The House already has voted to reduce Mr. Roosevelt's 875 million : |dollars unemployment relief appropriation for the remainder of this fiscal year to 725 million dollars. . Republican and conservative Democratic leaders believe, but cannot yet demonstrate, that there is a Senate majority for fundamental revision of the National Labor Relations Act to impose upon unions responsibilities parallel with those now imposed upon employers. Similarly, there is a good chance that Congress will impose upon Mr. Roosevelt a new unemployment relief system and come close, at least, to taking out of his hands the authority to allot relief funds to states in accordance with his estimate of local needs. he VETERAN ADVISES PILOTS

MANSFIELD, O., Jan. 20 (U. P) —Air accidents are caused—they don’t just happen, Ralph’ Smith, flight pilot with Admiral Richard E. Byrd on his last Antarctic expedition, told a group of pilots here recently. He said there was *“always a cause” for airplane accidents and that the “smartest bad weather pilot is one who sets his ship

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