A Tax for Everyone

A Federal sales tax is in the works. The entire body of New Deal thinking, which long opposed sales taxes as a burden on the poor, has switched completely. In the U.S. war economy, with its new rich and its new poor, only a tax on the low-income groups can provide new revenue for arms production and drain away the real bulk of inflationary purchasing power. Putting a $25,000 ceiling on incomes would leave both problems untouched.

In the Administration, only President Roosevelt and Secretary of the Treasury Morgenthau still held out last...

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