Comparative Tax Burdens in America and Britain

May 21, 1935

Report Outline
Bonus Payments, Government Credit, and New Taxes
American and British Income Tax Rates and Burdens
Death Taxes in the United States and Great Britain
Proposals for Heavier Taxation in the United States
Special Focus

Bonus Payments, Government Credit, and New Taxes

By Deciding to take the unprecedented step of going in person to the Capitol to return the bill for cash payment of the bonus and inform Congress of his reasons for vetoing it, President Roosevelt indicated the serious view which he held of making this huge extra-budgetary expenditure by inflationary methods. If the veto should be sustained, and if Congress should then pass a bill for bonus payment without the greenback feature of the Patman measure, it is still believed that the President would refuse to grant his approval unless provision were made for levying of additional taxes. The administration's concern about this matter was plainly disclosed on April 23, 1935, when Secretary of the Treasury Morgenthau warned the Senate Finance Committee that, in his opinion, “the credit of the United States government depends very largely … upon scrupulous adherence to the President's [budget] program.”

I don't think we can continue to enjoy the present favorable rates and favorable market for the sale of government securities [he said] if new expenditures are incurred which go far beyond the limits of those which have already been outlined. The Treasury, therefore, would view with great concern the enactment of any bill which calls for large additional expenditures, without, compensating additional taxes. It seems to us of the utmost importance that if any adjusted service certificate settlement calling: for increased expenditures, or for earlier expenditures than those already taken into account, should be enacted, Congress should make provision for raising revenues sufficient to cover the additional expenditures in the year or years in which they are to be incurred.

The attitude that the administration would take on this point had been foreshadowed as long ago as last February, when the President, after signing a deficiency bill providing restoration of full pay for government workers on April 1 instead of July 1, 1935, declared that Congress should forthwith give consideration to increasing the government's income to take care of “this and any other new appropriations which tend to throw the regular budget out of balance.”

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Mar. 24, 1965  Excise Tax Cuts and the Economy
Feb. 15, 1961  Flexible Taxation
Apr. 02, 1959  State Tax Problems
Apr. 23, 1958  Tax Reduction, 1958
Aug. 14, 1957  Fast Tax Write-Offs
Apr. 10, 1957  Federal Payments in Lieu of Taxes
Sep. 12, 1956  Corporation Profits and Taxes in Prosperity
Mar. 16, 1954  Shares in Tax Relief
Nov. 21, 1953  Revision of Excise Taxes
Mar. 19, 1953  Federal-State Tax Relations
Oct. 01, 1952  European Taxes and Tax Evasion
Nov. 03, 1950  Excess Profits Tax
Feb. 01, 1950  Tax Loopholes
Jun. 04, 1949  Excise Taxes
Oct. 27, 1948  Postwar Sales Taxes
Aug. 29, 1947  Taxation of Family Income
Apr. 09, 1947  Income Tax Relief
Jan. 11, 1946  Taxation of Cooperatives
Oct. 16, 1945  Federal Taxes on Business
May 08, 1944  Postwar Taxes
Sep. 20, 1943  Sales Taxes
Dec. 05, 1941  New Taxes for Defense
Apr. 05, 1941  Taxation for National Defense
Feb. 28, 1941  Taxation of Alcoholic Beverages
Jan. 11, 1941  Exemptions from Taxation
Dec. 04, 1940  Federal Taxes and Defense Financing
Feb. 01, 1940  Sharing of Tax Revenues
Feb. 02, 1939  Turnover Taxes in the States
Nov. 05, 1937  Broadening of the Income-Tax Base
Jun. 17, 1937  Exemptions from Income Taxation
Apr. 05, 1937  Coordination of Federal and State Tax Systems
Dec. 19, 1936  Revision of Federal Tax on Capital Gains
Nov. 02, 1936  State Taxation of Natural Resources
May 26, 1936  Assessment of Property for Taxation
Apr. 17, 1936  Federal Taxes on Consumption
Mar. 19, 1936  Taxation of Undistributed Corporate Profits
Dec. 17, 1935  Reduction of Tax Burdens on Real Estate
Oct. 21, 1935  Tax Delinquency in the United States
May 21, 1935  Comparative Tax Burdens in America and Britain
Feb. 01, 1935  Federal Taxation of Corporations
Nov. 27, 1934  Elimination of Conflicts in Taxation
Jul. 25, 1933  Taxation of Excess Profits
Jan. 25, 1933  Tax Burdens and Tax-Free Securities
Nov. 23, 1932  The Beer Tax and the Sales Tax
Dec. 19, 1931  Sales Taxes: Federal, State, and Foreign
Sep. 18, 1931  Death Taxes and the Concentration of Wealth
Mar. 18, 1931  Federal Taxation of Large Incomes
Jan. 10, 1931  Taxation of Capital Gains
Nov. 09, 1929  Federal Tax Reduction-1930
Aug. 08, 1927  Federal Tax Reduction—1928
Sep. 27, 1926  Tax Reduction and the Public Debt
Jan. 16, 1926  Taxation of Estates and Inheritances
Nov. 07, 1925  Federal Taxation of Small Incomes
Nov. 28, 1924  Social, Fiscal and Legal Aspects of the Inheritance Tax
Apr. 07, 1924  Causes and Effects of the Tax Return Blockade
Dec. 12, 1923  Tax Exempt Securities
Dec. 10, 1923  Taxation
Federal Taxes
Regional Political Affairs: Europe