Page:Economic Reform Policy by Envoy Dodge (Dodge Line).pdf/22

 6. IMMEDIATE RELEASE 15.4.49 (two-thirds.)

The Government Revenues

The larger estimated tax revenues of the government in this year's budget have been generally referred to as "tax increases". This is inaccurate. The tax revenues in the present budget are at the already existing tax rates applied to a higher level of income and prices. This is one of the products of inflation.

The attainment of the revenue objective under the taxes set forth in the budget is essential to meet the expenditures provided for in the budget.

The tax rates themselves are high but the effective collection under the rate are low. There is a real need for greater equity in tax administration. But no tax rate will be equitable or effective until each individual is willing and is required to pay his proper share of the tax burden. Modification of the existing tax rates can be justified only when the people wholeheartedly do their part in meeting their tax liability.

The administrative requirement is to insure that every individual pays his full legal tax debt. The honest tax payer should not be penalized by being forced to carry the load of the tax evaders. The profits of the tax evaders and the black market operators should be the first and most vigrously [sic] attacked.

Tax reduction must be predicated on an assured revenue under whatever rate is established. Taxes cannot be reduced in face of a record of progressively greater government spending. They can only be reduced as a result of progressively less government spending. After accomplishment, not before.