Pegler: Dewey’s record (2-3-44)

The Pittsburgh Press (February 3, 1944)

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Pegler: Dewey’s record

By Westbrook Pegler

Albany, New York –
It would be foolish to pretend that the rising interest in Tom Dewey’s work as Governor of New York is limited to just that.

Although he is not a declared candidate for the Republican nomination for the Presidency nobody is naïve enough to think he would refuse to and that is why his work as governor, the adoption of a short, understandable state income tax form, his determination to make the cities meet their financial responsibilities so as to reduce their debts, the better to meet post-war conditions, his attitude toward the people whom he regards as citizens, not wards of the government, are of national interest.

This new state income tax form consists of just one page, for taxpayers whose income consists of wages, salaries, commissions, pensions, interest, dividends, partnerships, estates or trusts. It contains only 22 questions and schedules from A to I, such as “Were you married and living with your wife or husbands?” and “if so, state name and did your wife or husband have a separate income and if so, it included in this return?”

There is a reverse side, but half of that is taken up by instructions and the blanks on the top half are for the explanation of deductions claimed on page one. It can be used for incomes up to any amount derived from the sources specified, by contrast with the idiotic federal return required of individuals above a certain rather modest bracket.

Duplication in taxes

Moreover, although Mr. Dewey has not attacked the subject, his tax department is imbued with the idea that the federal and state governments should divide the tax field by agreement and avoid duplications. The income tax is the horrible example of this duplication, because the New York law compels the citizen to pay a state tax on money already paid to the national Treasury, a plainly cynical imposition.

The question may be raised, for example, whether the federal government has any right to collect amusement taxes inasmuch as amusement is a strictly local occasion. A man takes a girl to the movies. In what respect is that an interstate transaction? If the federal government may tax tickets, why may it not tax real estate? But if it confines itself to its own traditional American responsibilities it won’t have to collect local taxes.

The Dewey administration’s tendency seems to be toward restoration of the responsibility of the subdivisions of government and the division of taxing powers so that the federal government will not be collecting from the people to finance local improvements and assuming the function of the subdivisions without reducing their wasteful rapacity. Similarly, the state would operate in its own well-defined tax field and the cities and other inferior subdivisions would have to make their own way on their own revenues.

Old bonds for sale

Recently, Mr. Dewey’s controller, Frank Moore, has been telling careless cities that they can’t refund old bond issues but will have to pay them of. There is political risk in this because it means higher immediate local taxes in some cases but Mr. Dewey pointed out in a speech to a meeting of publishers that one city has repeatedly refunded an issue of bonds sold to raise soldier bounties in the Civil War and is still paying interest on them although the payments have amounted to many times the original amount. In another case, Boss Tweed in 1868 sold a bond issue paying 7% to pay for a sidewalk in the Bronx. The sidewalk is gone and probably no man lives who remembers it.

He said:

Some of the bonds will mature in 1975, but some cannot be paid for another 100 years since they are not callable. The bonds go on and on. These stories could be multiplied by the hundred.

There is no Harry Hopkins anywhere in the Dewey state government, nor a Henry Morgenthau or Randolph Paul. there are no timeless moochers’ quarters in the Governor’s mansion or embittered failures in the battle of life striving to revise the rules in favor of the incompetent to the detriment and discouragement of those who are able.

That simplified tax return is a bright example of the new type of New Deal. The old one, including instructions, contained six pages.

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