Suicide by Consent

U.S. business asked the Government last week to tax it almost--but not quite--out of business. Through the National Association of Manufacturers it urged that "all income over and above that needed to keep our business structure alive should be taxed to the limit--leaving only enough for survival."

Actually the $7,600,000,000 tax program submitted by the Association was not as near-suicidal as N.A.M. let on. The program proposed taking an added $1,500,000,000 out of corporate profits--but this was only half the $3,000,000,000 the Treasury had already asked. To make up for this change (and others), the Association asked a $4,400,000,000 sales tax--which did not sound as altruistic as higher corporation taxes, but might cost business about as much in higher costs and lower public purchasing power.

Whether or not N.A.M.'s tax program really called for taking away from business every last dollar that can be extracted, its announcement gave business the distinction of being one group that endorsed, in principle, the idea of taxing itself heavily.

Nor was the offer insincere. Ever since the New Deal came in, business has feared inflation like a snake, and repeatedly offered to bear more taxes to "balance the budget." These offers have been manna from heaven for the Government spenders. The balanced budget for which business volunteered to pay is further away than ever, but in the meantime corporation taxes (excluding excess profits taxes) have been boosted seven times, from 13 3/4% in 1933 to 31% in 1942.

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