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$711 Avenue-J-Houston Texas. November © oraole Marriner S. 13 I93J. Eccies, Washington D.C. Dear Sire After reading the news report« of your su^eetions in St Louis speech ?fov. 9th. for adjusting TAXATIONS, I agree with your desire to sccure **A BROADER TAX BASE" but disagree with ANY SUGGESTIONS FOR PUNATIVE LEVIES. That is ROBBING THE ROBBERS or EXPLOITERS without eliminptiing their ability or opportunities to continue their exploitations. Our LABOR UN|ION LEADERS now claim at least $2,500.00 a year is necessary to provide family neceessities. We can never have PERMANENT PROSPERITY until LIVING COSTS ARE STABILIZED and thereby stabilize Y/AGE DEMANDS and by substituting a TAX BAISED UPON "RECEIPTS OEP MONEY'1 for the numerous levies we now have, ENABLE EACH COMPETITOR to more urntely figure his FUTURE OVERHEADS. f "RECEIPTS OF MONEY" being used in place GROSS BUSINESS to proviue for CREDIT TRANSACTIONS which do not CREATE ABILITY TO PAY UNTIL CASH IS RECEIVED ( if ever). EXISTING ACCUMULATIONS have ueeu secured LLGALLY. Our failure to establish proper adjustments enabled these EXPLOITATIONS. This has caused foreclosures and fofeitures until ?5jf of ou|r families do not own a f a r m or home and do not have any savings for future emergencies* TO RECTIFY this WRONG, it is now necessary that EVERY LEVY UPON THE THINGS OUR FAMILIES must use or consume, be eliminated and that each inhabitant be exempted from the SUBSTITUTED LEVY UPON "RECEIPTS OF MONEY" up to an amount to balance family needs. I suggest $¿,000.00 a year instead of GREENS $2,500. Ve have become as individual a NATION OF SPECIALISTS and our NATIONAL LEADERS disregard STATE AND LOCAL TAXES in cons ideririti the ability of individuals to pay .ECONOMICALLY CONSIDiBHBD, when a family buys a product of another SECTION, STATE or even COMMUNITY, they are jg^efitted by the local taxes paid by the ACTIVITIES they help to maintain, no more than if they bought A F0KEIG1! PRODUCT. This creates SECTIONALISM and leads to boycotts and LOCAL AND STATE LEVIES WHICH ARE INDIRECTLY TARIFFS in RESTRAINT OF INTERSTATE COMMERCE. (2 ) tpBER OUR FORM OF GOVERMENT each and every child is entitled to an e^ual educa ^Kn)|al opportunity, under existing TAX SYSTEMS, their educational opportuni ties depend largely upon the ASSESSED VALUES OF THE DISTRICT IN WHICH THEY HAPPEN TO LIVE. The ability of the parents to properly raise them also DEPENDS UPO'J THE PROSPERITY OF THE SECTION IM WHICH THEY LIVE. YET— MOST OF OUR CHILDREN will eventually become the employes of some CORPORATION and their worth to these employers ( even if govermont&l agencies) are affected by the amounts expended by the parents for their raising and education. OUR CENTRALIZATIONS, MASS PRO DUCTIONS and INTERSTATE NATURE OF MOST OF OUR PROFITABLE ACTIVITIES OPERATIONS, the STATES cen now EQUITABLY REACH even thobe large activities located witnin their jurisdiction as AD j^UATE L&VIES.would provide cn advantage for their competitors located elswhere and they would lively FORCE THEIR REMOVAL OR CUR TAIL THEIR BUSINESS AND BY REDUCING EMPLOYMENT INCREASE LOCAL DESTITUTIONS. FEAR OF HAVING LOCAL ASSESSED VALUES REDUCED, is the cause of most of the objections to NATIONAL PROJECTS, CONTROL OF NATURAL RESOURCES, POYiER DEVELOPMENT REFORESTATIONS and many improvement which would be beneficial to the GENERAL WELFARE. There is only one thing which can be useu to pay taxes. Payments can be continously made without injury, ONLY, if the payments are mede by the RECEIV ERS OF MONIES and paid ns the ABILITY TO PAY IS CREATED. INDIRECTLY we attempt to base taxes upon what the things levied sgai’nst will bring in. EQUITABLY *CON SIUBRED, this impossible as what may amount to or provide ONLY ABSOLUTE LIVING EXPENSES to one may be used by others to secure an accumulation or net profit. We make an nllowance for overheads and rada reasoneble amount for INTEREST ON INVESTMENT and profit when CONSIDERING INDUSTRIES AND BUSINESSES but fail to realize that for ten years, 80# of oar families have operated at a loss as proveu by their having lost their farms anahomes and are now pledging their ^^tu r e earnings for food and conveniences. This is DESTROYING OUR FUTURE TOTAL PURCHASING POWER and increasing destitutions and FORCING SOME AGENCY to PAY OUT even more money than was secured by the levies which caused the destitutions. That is not operating economically. (3) •¡JET PROFITS" is generally considered as an EQUITABLE TAX BASE. That is only SfeoRARILY TRUE. On account of the practices of many, to ¿»ELL AT OR BELOW GOST, USE EXTRAVAGANT ADVERTISING CAMPAIGNS auid secure BUSINESS while reducing or eliminating their NET PROFITS end at the same time reducing the busines of all others engaged in the same lines, end thus DESTROYING THEIR NET PROFITS and curtailing NET PROFIT TAXES TOTALS SECURED UNDER SUCH A TAX. This SYSTEM forces ergers and enables LARGE CORPORATIONS to SECURE MONOPOLIES. Whe if each was taxed in exact proportion to business secured and EXISTING LEVIES ELIMINATED, those USING SUCH POLICIES would only INCREASE THEIR TAXATIONS and would not so easily ruin their competitors. ONLY CONGRESS CAN NOT ADJUST OUR ECONOMICAL CONDITIONS. While it is advisable to provide e^ual opportunities among the EXPLOITERS, THAT ALONE WILL NOT SOLVE THE PROBLEM. MY SUGGESTION IS-- CONGRESS levy a 5# tax upon "RECEIPTS OF MONEY" regardless of how secured, BY ||^M, thru what agencies or for WHAT PURPOSES. Include an individual exemption to every inhabitant up to $¿¿,000. a year to balance necessary family living costs which are not now BORNE BY THEIR CORPORATION COMPETITORS. DIVIDE 40# of the TOTAL SECURED thru the 5% TAX among the STATES in proportion to populations, to be used by the states thru prorations, to aosoru or eliminate all the existing levies for ALL STATE, COUNTY AND SCHOOL PURPOSES. Judging by BANK CLEARANCES and other reports, this could be done and still most states wouxd have a balance in cash sufficient to care for their own aged, destitute and »affixicted and return this duty to those best able to perform it. OUR LEGITIMATE ACTIVITIES now claim to be paying from 15 to 35ji of their GROSS RECEIPTS FOR TAXES, those which would be eliminated amount to at least 10# and those NOW PAYING would be saved money by the SUBSTITUTION while those now avoiding most all local levies and reducing their U.S. NET INCOME TAXES by SQUANDERING THEIR PROFITS, would all l^^peached end at least 50# of our TOTAL REVENUE would be secured from those who now avoid the payment of their just proportion altho securing more than their just proportion of uusiness. If there is a legitimately competitive, useful activity in Texas which would be injured by such changes, I CAN NOT LOCATE IT» C4) The eliminations and the individual exemption wouia gave the average sized family l^least $350.00 t> year and 75# of them would spend this srving for family needs. The 60# retained by the U.S. would actually BALANCE THE BUDGET and still leave ample CASH with which CONGRESS could combine the PROJECTS it now deems WORTH and provide employment at living »ages for all SURPLUS EMPLOYABLES. DIRECTLY and INDIRECTLY this should INCREASE CONSUMPTION AND PRODUCTION in most every useful line. GRADUALLY OUR LEGITIMATE ACTIVITIES .could ebsoro most of the GOVisiRMEiiT WORK ERS and the ABILITY 0F INDIVIDUAL to buy a farm or home end pay for it while ireising nnd educating a family, WOULD REMOVE 10 MILLION WOMEN FROM OUR WORKERS RANKS and the INCREASED TOTAL PURCHASING POWER should maintain consumption to where our ECONOMICAL CONDITION WOULD BE PERMANENTLY STABILIZED and eventually the 5#TAX RATE could be reduced or the SURPLUS TOGETHERWITH OUR TARIFFS and INTERNAL REVENUES applied on our NATIONAL OBLIGATIONS and our ANNUAL BUDGET RE £pED. TECHNICALLY OUR BANKING INTERESTS DEPEND upon the DIFFICULTIES of 0THER8 tt secure their INTEREST PAYMENTS. YET-- It is now necessary to CURTAIL CREDIT INFLATIONS and there will always be INDIVIDUALS AND CONCERNS willing to go into debt and take a chance on their ability to make profits , to provide maintain«? nee of our financial institutions. It is the FIRST DUTY OF EVERY GOVERMEIIT to enable its citizens or families to proviue for themselves. UNCOMSCIOUSLY we have substituted the WELFARE OF CORPORATIONS for the welfare of our FAMILIES* Enable our INDTJSTRIUS CITIZENS to own farms and homes and secure a living by their own labors and we will have a more patriotic citizenry. FARM AND HOME OWNERS making a living are not THOSE WHO JOIN OU1 ISMS or folow our AGITATORS. CONGRESS has constantly increased its aids to sections, occupations and individ uals and there seems to be an increasing demand for such payments. MIGHT AS WELL GO ALL THE WAY and SECURE ADEQUATE FUNDS under an equitable levy the constant LEGISLATIVE SQUABBLES by TURNING OVER to the STATES and local •gencies those things which they cn beat REGULATE AND CONTROL and by REMOVING their FEAR OF HAVING ASSESSED VALUES REDUCED, secure their «©-operation in turning over to CONGRESS those things which they now. realise they are unable to ( 5) ke care of equitably. IP WE ARE ONE FAMILY W « COMMERCE we should be ONE FAMILY sharing the benefits provided by the tax payments from every activity in the U.S. W. cen not have e^uax taxations with a tnousand taxing agencies. COMPETITORS locuteu iu different sections ca.i not hrve an equal opportunity unless they pay the same taxes aud those taxes are based Upon the BUSINESS SECURED BY EACH. The speculative value of pr'operty does not affect its PRODUCTION The speculative vrlue of a home does not change its ACTUAL,USEFULNESS AS A HOME* PRICES, ASSESSED VALUES, LIVING COSTS and INCOME are all comparative. We have tried PYRAMIDINGCOSTS AT EVERY STEP clear up to consumption or exporta t ions. Ve should know that it has failed. “We should now try to REDUCE COSTS at every step and BY RESERVING the .first receipts of every family up to $2,000* ft year, for family needs prevent INCREASE^ IN PRODUCTIONS on our farms and by STABILIZING FOOD COSTS, stabilize WAGE DEMANDS and thus enable CONGRESS.to ^ o e k PYRAMIDINGS BY SPECULATORS even iu time of war or disaster. Your questions, criticisms and suggestions will be appreciated. I am not inter ested in any particular line or activity and my sole desire is to SECURE MEASURES which will perpetuate our forto of goverment and enaole FUTURE GENERATIONS t.o provide forthemseives without subsidies or charities. Yours truly, 6711 Ave-J-Houston Texas. o Morell Tomlin* November 17, 1939* Mr. U o re ll Tomlin, 6711 Avenue J, Houston, Texas. My dear Mr. Tomlin: On behalf of Chairman Secies, who is temporarily absent in the titeSt, I wish to acknowledge receipt of and to thank you fo r your le t t e r o f November 13. Very tru ly yours, E llio t t Thurston, Special Assistant to the Chairman. ET:b
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