anaheim-gazette 1953-05-28

8 Anaheim Gazette THURSDAY, MAY 21, 1935 ANAHEIM, CALIFORNIA Washington Reports By Congressman JAMES B. UTT This report is being written just two days after President Eisenhower's radio address. Generally speaking, I think it was a straight forward, hard hitting, honest attempt to lay before the country the true facts. The main purpose of this administration is to provide sound national security and preserve our national solvency. However, I feel that he was ill advised on the subject of increased taxation. We have promised tax relief, and I feel that the people are entitled to it. Moreover, I believe that increased rates will not result in increased revenue, because I am sure we have passed the point of diminishing returns. President Eisenhower's request to extend the excess profits tax is not acceptable to the Republican members of the ways and means committee, although most of the Democrats will go along with it as the excess profit tax law was their idea in the first place. We shall start hearings on this bill on June 1, and I believe the testimony will develop the fact that instead of producing the $700 million as the president says, it will not produce $100 million. The general feeling is that if corporations are making excessive profits, it is right to tax them; however, the excess profits tax is a misnomer. It is not a profits tax, it is a penalty tax charged against small corporations which had little if any, income during the base period of 1946 to 1949. The large corporations who were making big profits in that period pay little excess profits tax, if any. As a basic example, we might assume that a small corporation just getting started during the base period of 1946 to 1949 showed no annual profit. Through efficient operation and quality of product, they have been able to build up their profits to $100,000 annually. Most of this could be considered excess profits and would be taxed at 83 per cent. During the same base period, a large corporation, which has been in existence for many years, might have had a profit of a million dollars. Since they are making a good profit and there is no incentive to make more, they do nothing to improve the quality of their service or their product but continue to make the million dollars each year and pay no excess profits tax. It is, therefore, the little corporations which are paying the tax, and for that reason it is discriminatory and morally Nearly 250 bills under federal heading of "social have poured info into the housing the session of the late now under way at Sacramento with few exceptions," aimed at "benefiting" groups and women. In justification for them, the authors generally the time honored phrase, general welfare." But if them actually serve the pose is open to question. Running strongly through is the new deal philosophy something-for-nothing. Certainly, we all agree are situations in the day of each of us which could improvement. We are rich. Indeed, some of us need, and some are not able as others. Facts of Life These are age-old facts—facts that plague the viority of people. Our Lord the poor would always be wise. Yet, those who plant in our legislature would man'sills by one simple ent. Let's face it: they confiscate the production workers without recourse. These bills, as those which preceded them and are not take from one group and another. And it is a fair question lieve, to ask if any adult even in need, really benefit living on the confiscated part of another. Does anyone ever benefit removal of the responsibility his own welfare, or for Night sessions and Saturday session! That was the order of business last week as major controversial items were voted out of committee onto the floor of the Assembly. The biggest item of all, in more ways than one, was the 122 page budget bill, A.B. 700, Sherwin, providing a 1953-54 budget of $1,294,405,203.00. This bill was the result of very extensive hearings held by the Assembly Committee on Ways and Means, which succeeded in cutting $32,446,582 from the budget proposed by the governor. By effecting these cuts a balanced budget was presented. During the Friday session of the assembly which lasted far into the night, a number of amendments were presented and debated. Some of them provided for cuts in a lavish University of California budget, which was greatly expanded over last year's. A group of the first year assemblymen, including myself, who felt that these economy amendments were very advisable, spearheaded support for them and succeeded in passing amendments that cut out $838,000 proposed for the purchase of three and a fraction acres contiguous to the already overbuilt Berkeley campus, and $2,400,000 proposed for a new anthropology museum and storage building. Other cuts voted during the day and evening included $1,013,150 for armories, $400,000 for purchase of new state automobiles (other than highway patrol) and $50,000 for needless publications in the department of education. Thus the assembly cut a total sum in the amount of $4,499,150—not bad for a long day's work. Many of those cuts will no doubt remain as the bill goes over to the senate side for consideration. One thing should be kept in mind, however, neither the assembly version nor the senate version will become law as passed. Bills of this controversial and detailed nature are generally settled in what is known as free conference committee, a commit-a large corporation, which has been in existence for many years, might have had a profit of a million dollars. Since they are making a good profit and there is no incentive to make more, they do nothing to improve the quality of their service or their product but continue to make the million dollars each year and pay no excess profits tax. It is, therefore, the little corporations which are paying the tax, and for that reason it is discriminatory and morally wrong, and I shall oppose the extension. There are many ways in which the administration can save a billion dollars, and that is easier than raising a billion in new taxes. Government Tax Racket To the average worker, struggling along to pay his bills and provide the minimum essentials of life, it is easy to feel that it is morally right for the government to take 92 per cent of the income of those who are in the tax bracket where this percentage applies. The general feeling is that the 8 per cent which is left is so much more than what the average worker has that there should be no complaint about it. But we must remember that if there is not a high level of employment, it is the average worker that suffers. He does not have the reserve upon which to live during times of unemployment. Therefore, there must be an incentive for private investment. Those who have the money must find that it is profitable to invest in business which will furnish the employment. With taxes as they are now, for every dollar that General Motors paid to stockholders last year, it had to pay $3 to the government in addition to what it collected and paid in excise and sales taxes. The department of commerce estimates that the government took an average of 57 per cent of all the earnings of corporations, and for every dollar that the stockholders got in dividends the government got $2.48. Then, in addition, the government got personal income tax on these dividends which all sums up to the fact that the government gets 42 times as much out of the average corporation as the investor in the top income tax bracket is allowed to get and keep. If this is allowed to continue, we will find that new venture capital will dry up with unpleasant effects on wages, employment and protection, and at the same Thus the assembly cut a total sum in the amount of $4,499,150—not bad for a long day's work. Many of those cuts will no doubt remain as the bill goes over to the senate side for consideration. One thing should be kept in mind, however, neither the assembly version nor the senate version will become law as passed. Bills of this controversial and detailed nature are generally settled in what is known as free conference committee, a committee of three members from each house of the legislature. Some observers believe that the item for armories that was cut by the assembly bill will be restored at least in part by the senate. However, on the other hand it is felt that the senate will concur in the other cuts which we made this week in the assembly. Horace Mann P-TA to Fete Teachers June 4 Plans are being formulated by members of the Horace Mann P-TA for their annual teachers' pot luck picnic to be held in La Palma park, Thursday, June 4, at 12 noon. All board members and room mothers are urged to attend. Help guard our skies against an air attack that could come today! To become a volunteer Ground Observer call Placentia 6648 or see C. H. Eichler, 4852 Eureka St., Yorba Linda. Phone 4018 ERMISCH "MY CLEANER" Main Office: 117 W. Cypress Branch: 250 W. Center Anaheim For EARLY AMERICAN MAPLE and PROVINCIAL FURNITURE and EARLY AMERICAN CARPET you’ll find a wealth of ideas by broad Your FURNITU Hotpoint DEALER Convenient Arranged to s OPEN FRIDAY 146 N. LOS ANGELES ST. — ANAHEIM The Farmer's Corner BY RALPH H. TAYLOR Nearly 250 bills under the general heading of "social welfare" have poured into the hopper during the session of the legislature now under way at Sacramento. With few exceptions, they are aimed at "benefiting" grown men and women. In justification for entering them, the authors generally use the time honored phrase, "for the general welfare." But that any of them actually serve this purpose is open to question. Running strongly through them is the new deal philosophy of something-for-nothing. Certainly, we all agree, there are situations in the daily life of each of us which could stand improvement. We are not all rich. Indeed, some of us are in need, and some are not so capable as others. Facts of Life These are age-old facts of life: facts that plague the vast majority of people. Our Lord said one poor would always be with us. Yet, those who plant these bills in our legislature would cure man's ill by one simple expedient. Let's face it: they would confiscate the production of others without recourse. These bills, as those which have preceded them and are now law, take from one group and give to another. And it is a fair question, I believe, to ask if any adult person, even in need, really benefits by being on the confiscated property another. Does anyone ever benefit by the novel of the responsibility for own welfare, or for that of strength and to hurdle the obstacles and to develop his inherent potentialities to their fullest. It isn't an accident that most of our top-ranking Americans, whatever their walk of life, are men whose careers have been associated with hardship and struggle. Bounties not associated with one's own efforts tend to weaken the news which make for a full life. Such bounties remove the necessity for production and invite a potential producer to be a non-producer. Human Generosity The impersonality of government gratuities not only leads the recipient to look upon them as a right, but tends to rob man of his concern and voluntary responsibility for his fellows in need. Courage a person to gather new Voluntary generosity by individuals is always accompanied by an effective screening of the "chiselers." Government finds it extremely difficult if not impossible to do this. Old-fashioned virtues of dependence upon one's self and care by individual responsibility of those actually in need must be restored if true charity is not to be destroyed by a confiscatory government. 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