tax until about twenty years bad passed.
But when Roosevelt eame alone.' and
for the first time used the tax weapon
on a gigantic scale — demonstrated the
technique of buying votes with the
voters' own money — the old American
Each administration since Roosevelt
—which means Truman and Eisenhower
—has used the federal income tax in
the way and for the purpose lhal Karl
Marx prescribed when he wrote the
Communist Manifesto. The Communist
Manifesto says that if governments in
the capitalistic countries would adopt
steeply graduated income taxes for the
purpose of redistributing the national
wealth — that is, imposing a higher rale
of taxes on people who have been
successful and who have accumulated
some holdings, and a lower rate on those
who don't have very much they would,
by that act, create Socialist societies,
because, in destroying the accumulations
of private wealth, they would dry up the
sources of private capital and destroy
the system of private capitalism."
This Communist idea eef graduated income lax has always been politically
popular, because it has a pleasant, soak-
the-rich appeal. But soaking lh«' rid,
raises relatively little revenue, because
there are relatively few rich people to
soak. Most of us who pay taxes are poor
Although people in the top income
brackets today pay the federal government 92 per cent of their earnings.
it is still the people wilh small incomes
—stenographers, bookkeepers, truck
drivers, sleelworkers—who pay over 80
per cent of the cost of government.
If the government confiscated every
penny of every income above ten
thousand dollars a year, the proceeds
would be barely enough to run the feel-
era! government as it now operates for
—Wide, World Pholo
Chief Justice John Marshall (portrait by
James R. Lambdin).
—Wide World Photo*
In 1934 (left), President Roosevelt signed the dollar evaluation bill and took immediate
steps to put the new monetary system into effect. President signed bill in the presence •'
his monetary advisers (left to right): Herman Oliphant, of the Treasury Department; Secretary of the Treasury Morgenthau; Eugene Black, Governor of the Federal Reserve Board!
Professor George Warren; George L. Harrison, Governor of the Federal Reserve Board °'
New York, and Professor James Rogers. At right, photo shows the first and last pages of rh*
$3,553,400,000 fax bill, the largest that had ever been enacted, after FDR signed his nan"'
to it in September, 1941. It was designed to defray the costs of the national defense and
Of course, the man who has the most
property should pay the most taxes, because he gets the mosl protection from
government. If your income is twice
as much as mine, your taxes should be
twice as much as mine, because you
have twice as much value needing the
protection of government. But there is
no legal, moral, or economic justification for your having to pay four or
five times as much, as is lhe case now
under a tax system built on the Com-
iniuii-t principle of graduated rales.
Federal income taxes arc gradually
achieving lhe Communist ideal of transferring all capital wealth from private
individuals to the federal government,
leaving our economy entirely dependent
em government capital.
We are- converting our system of
private capitalism into a system of state
in government capitalism. Private capi-
talism is the system that built America.
State or government capitalism is the
system that Mussolini had in Italy,
Hitler in (iiiinany. the Communists in
Russia and China."
Today, there is hardly any major
undertaking planned without the federal
government's being asked to provide
financial backing. Yet the debt of our
government is already bigger than the
combined indebtedness of all the other
governments in the world.
If a city needs a lake for its water
supply, it asks the fed,-reel government
to provide it. If a region wants a canal,
ii asks the federal government to dig it.
Slum clearance project? Gel the money
from government. The government of
India wants some wheat'.-' Get it free
from Uncle Sam.
Four young couples who vole rigW
and who have "pull" want to lake ""
expensive vacation together traveling
Fine! Our Foreign Operations Admii1'
islralion rig- up a ridiculous inspection
trip fur thru, so they can take iheir trip
ai government expense.18
YOU PAY FOR IT!
What does "at government expense?
mean? 11 means lhat you pay for jjj
When the governmenl spends llf
million dollars lhat, of course-, doesn'
come from you. because vein eleen'l ha*'
lhat much money.
But the one dollar or Iwo ,I,,liars «'
five dollars taken <„il of your che4
each payday, along with equivalent
sums taken away from every other ]"'''.
son in the nation, goes into the feel'1-1
pot. And from that pot. lhe I,ureal''
crats gel Ihe money with which ll"'-
finance "al governmenl expense" trip5*
and other benefits fen the people l',f
The two or three dollars lhal y0"
would like to lay aside each payday, *
feei the vacation Irin von I"11
always dreamed of but could ih'V
afford, is never quite there for you-
The governmenl always heals you
it—takes il out of your check hef"'
yen, ever see your check and >'"''
use's ii iee provide a really g I va<al""
trip for someone else.
Wilh practically every person
nation dependent in one way or anotfj
on governmenl handouts, subsidies, ;1"1
contracts, can the tide be turned In"
It could, but il would require sin"'"
FACTS FORUM NEWS, Marcl