August 17, 1935 - Editorial - The Jig is Up, by George Lorimer
President Roosevelt's demand that much heavier taxes be imposed upon wealth carries many disturbing implications, but whatever else it means, it serves as an announcement that the financial jig is up.
The dance of billions may go on for a time, but its merriment is shortly to be dimmed by the necessity of paying the piper.
For he is an innocent and guileless soul indeed that does not realize that this program of soaking the rich is merely a preliminary to a grinding of the face of the middle class and the poor. The colossal debts which the Government has incurred can never be paid from "wealth taxes," no matter how nearly confiscatory.
To begin with, the rich are too depleted, in both income and fortune, to yield the sums which are required. Strictly speaking, what the situation calls for is not so much more taxes as more individuals and corporations capable of paying taxes. The urgent need now is for incomes to tax. But, unfortunately, the New Deal has all too often gone out of its way to discourage enterprise from which incomes flow.
In the next place, the rich are already paying extremely high taxes, up to 63% on the highest range of incomes, and 60% on the largest estates. Of course, the levies can be pushed still higher, but the additional yield would be relatively small and the ultimate effect of drying up tax sources might be very great. (pg. 22)
Comment: Again, we see that the income tax is associated with wealth, not human labor.