Editorial: Straight thinking from Willkie
Wendell L. Willkie’s views of fiscal policy, as set forth in his New York speech, are thoroughly sound. Unless we maintain vigorous economic health, we can neither play a successful major part in world affairs after the war nor realize our hopes for social gains and higher living standards here at home.
An economic bloodstream composed largely of debt will eventually starve all the cells in the body.
It has been said before that our standard of living will have to come down during the war. Mr. Willkie proposes to force it down by tax increases that would net twice the amount asked by the Treasury, about six times the amount voted by Congress.
We wish Mr. Willkie had been more specific as to what taxes he would lay. But he was thinking straight when he advocated, in general, ruthless levies on every dollar in every income group, leaving the American people only the actual necessities of life, in order to pay the costs of war while the war is being fought, to the limit of our ability.
This, he says, is only simple justice to the men who are doing the fighting; it is the way to save our standard of living in the future.
Expressing greater faith in the people than some others have shown, he predicts they would bear the burden willingly if given a clear understanding of the issues involved, and if assured that their money would not be wasted.
He recognizes, also, that the post-war period will present an entirely different problem. Then our desired objective will be to stimulate the flow of goods and services, the taking of risks, the creation of millions of peacetime jobs. Then will come the time for minimum rather than maximum taxes. And then the fiscal policy should be, not to impose the highest possible tax rates, but to provide the highest possible income so that relatively modest rates can provide necessary revenue.