The Courier News from Blytheville, Arkansas on April 3, 1941 · Page 7
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The Courier News from Blytheville, Arkansas · Page 7

Blytheville, Arkansas
Issue Date:
Thursday, April 3, 1941
Page 7
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Defense Taxes Need Not Cancel Profits JLTTHF.VILLE, (ARK.) COURIER NEWS Below is the last of three *'tai articles describing how nu.'.inpfw is raring in the midst v;",.. *7' e r Lsil Defense activity, VJ '-' :':-,> rumors' of war. The .series W a.s written for NBA ^ervice and the Courier News »y uoieci author-economist John *• _Plynn. in these articles, Dusmess men and wage earners ar <? given fair and lucid discussion of many perplexing Problems posed by the uncertainties of the present and future. By JOHN T. FLYNN (Written for NEA Service) The most important problem confronting American business— and for that matter the nation- is that of taxation. It must be remembered that the boom which Ls developing Ls L h e result of one big customer comin<-- mto the market. That customer Ls the government. And the government has no money. The government can get the money it .spends in only one way, and that Ls from the "people, it can tax them 'or it can borrow from them. And if it borrows, in the end that can be handled only by taxation. It must tax today or tax tomorrow. The amount that will be .spent is very great. I have tried to follow the government's appropriations and authorizations for defense. They amount to about $30.000.000,000 for ourselves and $7,000.000,000 for Britain. These huge sums will be spent in the coming two fiscal years. And almost all of this money will be borrowed. However, there will have to be some increase in taxation. How much this will be it is difficult to say. Government officials are talking about an increase of $1 500.000,000 a year for the next two years—which, while seemingly large, is but a drop in the bucket. PRIVATE INVESTMENT VS. INCOME TAXES • tflowever, these bills must be met, and people probably will yield to them without murmuring. "The serious side of the tax problem is not so much the burden on individuals as the effect on our economic society as a whole. Let me give an example. Mr. B is an executive with a salary of $100,000. He must pay a. tax on that of $44,844. That is a heavy tax. But after all, he will still have left • $55,000 for himself, so we need waste no sympathy on him. Having-said that, the average advocate of soaking,,,the^rich- dismisses,the matter. •• -— But the' important thing is not the effect on Mr. B. Look at it this way: Mr. B has saved $50,000 in spite of the taxes. It is lying in the bank. He wants to invest it. He can get an industrial bond which will pay him 3 per cent. That will give him $1,500 a year. But that Income (« returns piled „„ b, Ih.asands. syml)<llil( . ,„',. fat .,' „,,, •ta «,„ S el the- ,no nt ,v I. s pend s i,, .„,„ , mc and H»at is from the people." extra 51,500 will be taxed at a still higher rate. On that $1,500 hfr will have to pay 68.2 per cent or $1.023 in taxes, fie will have for himself only $477. That means less than i per cent interest. Now. why should he invest money at 1 per cent when he can invest ifc in a public bond which will yield him from 2 1-2 to 3 per cent? m fact, he would probably not be willing to invest his money FOR SALE APPROVED ALFALFA SEED Lespedeza and Beans and Peas of Various Variety Also Car of STONEVILLE Pedigreed 2-B and 4-B L R = Matthews Gin Co. 1 per cent at all. lor there is always an element of risk in private investment. A drop of three or four points in the bond would rob him of his interest for three or four years. The upshot of all this is that Mr. B Ls out of the market as a private investor. SMALL YIELD FROM RISK INVESTMENT It is even worse in the case of risk- investment—the investment of money in new enterprises where % there is a large element of risk or 11 where a man might have to wait|| <- Oi yeais before Ins dividends begin to come in. No man will invest in such en- terprises for 3 or G or even 10 per cent. However, such investments sun ply do not exist for such a man Because when he makes an investment he must always remember that-he has a partner—Uncle Sam —who will take the lion's share of his profits. If he wants to make a risk investment to yield him G per cent . - « |;vi U'.IIL he would ha\^e to find some enterprises that would actually pay 20 Every Day In The Week! RICHARD'S GROCERY & MARKET 1M4 \V. Chickasawba Phone 1133 Phone 403-W-2 Yarbro, Ark. Get the Facts and You'll Buy An ANN 'The Baler for Business "18" JUNIOR PICK-UP BALER .14x18—16x18 Embodied in the construction of the Ann Arbor "18" Junior I «^-«I» kalcr are the many approved and time tested features which for more than half a century have given Ann Arbor ISalers the enviable reputation uf being the leader in their field. II pr«ducrs «rr!y smootli square cornered bales of uniform density and wttiffht. No loose wires or broken bales in handling and transportation. Byrum GET OUR PRICE ON SEED OF ALL KINDS ALL VARIETIES OF SEED CORN D.P.L. NO. ]2 REGISTERED COTTON SEED FUNKS HYBRID SEED CORN (We Recommend Funks No. 2i4) SOYBEANS OF ALL KINDS NEW and USED HORSE DRAWN EQUIPMENT EW & USED FARMALL TRACTORS AND EQUIPMENT ALL KINDS OF FARM HARDWARE Lee Wilson & Co ARMOREL, ARK. per cent. Uncle Sam would Inko 14 per edit of it. leaving him G per cent. But there aiv no 20 per cent industries lying around. Hence the effect or the present tax system is to put almost permanently out of tho market as investors, people of ian ;o incomes —who havo a groat den] t 0 invest,. OVEK-EXI'ANSION A OK AYE MISTAKE Therefore we must nm look for very much long-term private investment during ihe war period However, ihe busings.-, man now operating his industry need not worry unduly about ihi,s f 0r , ne time being, if he has s.-use he will BO on operating his pLuu, making us good a profit as possible, realizing that there will be .something for himself, which is moro than he could .say some* years a 40. The gravest mistnki- hV can make is io iry to step up this profit by expanding his operations very much. The next, greatest mis- lake he can make is the accumulation of inventories, jf i le W JH •stay away from I wo dangers then? Ls no reason why he cannot keep his help employed, collect ' profits for himself and, when the .spree is over, find himself in a .sound position. Khaki Replaces Navy Whites PAGE SEVft» Tennessee Embarrassed By Rigid Liquor l«aw r _ CHATTANOOGA, Tenn. <UP> — Tennessee's "bootleggers' paradise law" is embarrassing police here Recently, Sheriff Payne's men watched a known bootlegger as he stored 700 pints of liquor in his "joint" which hus no license to sell alcoholic beverages. The bottles were stamped with the suite tnx seal. According to the Tennessee law a bootlegger must be "caught in the act" of selling the liquor to be convicted of violating the law. Buses for Salt Luke City SALT LAKE CITY. Utah (UP) — In July of this year, Salt Lake City's street railway system will celebrate its golden anniversary— by vanishing. Traction officials have ordered the last of the old railcars scrapped at that time. Tney will be replaced by modern 'buses and trackless trolleys. i. So that its men will be less easily seen by (he enemy, Ihc II R Navy >v,H souri replace its IraUllionnl whites with khakii uniforms p\l lure shows the now and the old. NEW YORK !UP.~A Chechoslo- vakian drinking soiij. is the favorite popular music of the army, Viennese wullwx «ve UKXII popular in officers' clubs the military jitterbug seem to be i-'Onccntrated in the -»M\ Infantry »t Fort Denning. Oa. Those tire the conclusions of a survey of 150 army units which Andre Kostelanels canvassed io learn their pet ditties. The sous which won the heaviest vote was "The Beer Barrel Polkn." a Czech time which also Is popular with the British fuming forces. Best - liked murtial air amonjr conscripts Is "The Caissons Oo Rolling Along." Tin Pan Alley's new mas.s production of patriotic .songs got feu- jinumi'. (lu- soldiers, Ko.strl- miflx reported. There were bu(, .srntim'd LmlluUs lor "Clod P,!exs America" uiul the soldiers almas!. Ignored .such numbers as ••] Am an American" mu) "He's M V Uncle." Individual .selecllons of eerlain HI-OUPS were luloreslliiK. For j n . stance, ihe !i>tn Infantry, Arlington. Va., impartially picked the snug, "Anchor.s Awe^h 11 us NEW! HOUSE PAINT KKPS WtgTE HOUSES DISTRIBUTORS JOHN MILES MILLER '2H W. Ash IMiom: 11H8 or, 375 No more chipping and chopping of rock-hard butter! This G-E feature keeps table butter just right for easy spreading or creaming. Its favorite. Tho 5W Const Artillery at Port, Hancock, N. j., rnled "Sweet Sue" at tlie jx'uk and Fort Hayes, Columbus, o., went classical, preferring Sibelius' "Plnlandia" to swing. The "hop cat.s 1 ; of the army were concenlrnlMl in Port Benning, where hoi jnsw. numbers like "In the Mood," "Beat Me Daddy," "One O'Clock Jump" and "Johnson Rag" were demanded. The old 1st Cavalry at Fort Kiiox, Ky., now the 1st Armored RuBimcm, .stayed in the Blue Grass tradition. UK favoritf song Is "Thr> OU! Gray Man-." Huff man Ct'IO Hoys Learn lo Cook DUNCAN, oklii. tUH)—Youths in the CCC camp ai Duncan probably will be in demand a.s husbands when tin; CCC finishes training thiMii. Or maybe- it. will bo the army mc.s.s dcpiuliiicnt thai wanus tlioin. 'l'lu> cnriilcivi aro h-arning how io cook in an all-male cliuss. TlK- ti'ix.'lu'r wa.s a commi.ssary .st'i'KiMint in lh<- n-jmlur army be- lore Jii.s retirement. About two-thirds of the growth of a live Ls accomplished at night.' Patty Pulien, of BIytheviUe, spent a Jew days here with Mr. and Mrs Lonnie Moore before leavino- for California Thursday Mr. and Mrs. J. B , Loflin of Muskogce, Okla., came Satift-day lor the funeral of Mr. Lotting l.'.ther, B. P. Loflin. Mr. and Mrs. Jessee Sitner, Mrs fiaao Booth and daughter, Eliza'- ueth. of Risco, Mo., visited Mrs Booth's daughter, Mrs. Sada Perkins, and family Saturday Mr. and Mrs. H. V. sewell of Campbell Mo,, visited Mr and Mrs. Lonnie Moore Sunday. Miss Izola Morgan visited relatives in Dell over the week end. Faulty vision is given as the nmin reason why applicants for the Army Air Corps are rejected WADE'S GARAGE Body & Paint Shop Wrecks llcp.'iired Wrecker Service 120.9 5^6 W. Ash Tops in Preference because it's Tops in Performance "Just Look At The Mechanism!" Surveys among refrigerator users and prospective buyers show more people prefer a G-E than any other make. Our prices and terms make it easy to own this "standard of refrigerator excellence." When you choose a refrigerator remember youare buying something that should last a long time — and should be easy on your pocketbook all through the years. .Get a General Electric and you are sure to get yourmoney's worth. Beauty and Quality . . . a R (iro Co tub tnal ion at a Bargain Price! We can sell you \ v i(h as low as $005 down c ;« i, ]„ n i • ,S " • " '— "" ' " • on If the ahovc terms .lon'l suit vo,, come in art , (cl , us wh ., ( Y0(r wan| sen, o ut on .send our refriRernors out ,m APPROVAL *" n{nKenior - WK °0 NOT loan nor at A ' LvERYWIIERE in America the big swing's to Dodge. For Dodge offers Fluid Dri?e-pl« s the six olhcr famous Dodge features-at prices so low any cnr-buyer can afford to buy this car of the year—and few can afford not to." This new Dodge makes it a Fluid Driving futurc-aiul you'll understand why the first miiT- utc you re behind the wheel. Once you Fluid Drive through Irafhc and over hills and highways -.slow or lasl, even stopping, without constant shifting of gcare-you'll be talking about this new Dodge Fluid Drive as eagerly as your nei«h- I>ors. Aec/> pace icilh motoring progress. See your Dodge dealer today. Go for a ride that will reveal the marvels of Dodge Fluid Drive. TUNE IN MAJOR BOWES, C. B. S., THURSDAYS, 9 TO 10 P. M.. E. S. T. FLUID DRIVE ONLY EXTRA bi your * ^~ T e (fetter for «s>- budfri f erCTS . s subject io change without notice. BLYTHEyiLLE MOTOR CO. 117 E. Main Louis George Motor Co. Osceola, Ark. Phone SOS Marked Tree Motor Co. Marked Tree, Ark.

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