At one of their White House press conferences last week, newshawks sensed something extraordinary about President Roosevelt. He behaved as if he were privy to some enormous secret joke which made him feel particularly good. But for all their fishing with well-baited questions the correspondents could get nothing more from him than that he might be sending still another special message to Congress that afternoon. Thus it was no great surprise when White House Messenger Latta trotted into the Capitol at 2 o'clock that same day with a Presidential document under his arm, trotted out again. What was surprising was that the Roosevelt message should be held back for more than two hours until Senator Pat Harrison could get the Social Security Bill through the Senate (see p. 10). Then Congressmen, quite ignorant of the President's intentions, settled back to hear what he might have to say.
As the fiscal year draws to its close, it becomes our duty to consider the broad question of tax methods and policies. . . . If a Government is to be prudent, its taxes must produce ample revenues without discouraging enterprise.
Many a Congressional eyebrow went sharply up because no one had expected a new tax bill to be thrust on Congress so late in the session. But if Congressmen were surprised by a tax message at this time, they were more surprised by its contents:
Proposals, Wealth in the modern world does not come merely from individual effort. . . . The individual . . . utilizes the many processes and forces of mass production. . . . As Andrew Carnegie put it "where wealth accrues honorably, the people are always silent partners." . . . The transmission from generation to generation of vast fortunes by will, inheritance or gift is not consistent with the ideals and sentiments of the American people. . . ,
I recommend, therefore, that in addition to the present estate taxes, there should be levied an inheritance, succession and legacy tax in respect to all very large amounts received by any one legatee or beneficiary; and to prevent, so far as possible, evasions of this tax, I recommend further the imposition of gift taxes suited to this end.
. . . I strongly urge that the proceeds of this tax should be specifically segregated and applied, as they accrue, to the reduction of the national debt. By so doing, we shall progressively lighten the tax burden of the average taxpayer, and, incidentally, assist in our approach to a balanced budget.
The application of the principle of a graduated [income] tax now stops at $1,000,000 of annual income. In other words, while the rate for a man with a $6,000 income is double the rate for one with a $4,000 income, a man having a $5,000,000 annual income pays the same rate as one whose income is $1,000,000. Social unrest and a deepening sense of unfairness are dangers to our national life which we must minimize by rigorous methods. . . .