April 1961 Home   Newsletters

May 1961

June 1961

Calendar of Events
If the 16th Amendment Were Repealed...
Honor for the League
What Has Happened to Legislation Concerning the Voter?
Report on City-County Planning
Report on Local Agenda
Note of Appreciation
Welcome to Our New Members!

Have You Heard?

One of our national continuing responsibilities is opposition to repeal of the 16th amendment, (Federal income tax) based on a league study several years ago. There is now a resolution in our state Legislature in favor of repeal of the 16th amendment, and the Honolulu LWV has been given permission to act in opposition to this resolution.

Helen Frederick will be happy to furnish league materials on this controversial matter. Her phone number is 978-162.

If the 16th Amendment Were Repealed!

What fiscal policy adjustments would be necessary?

  1. Impose sales taxes?

    A tax on all retail sales including food would probably be at a rate of about 29.5%.

    If food were excluded a rate of 39%.

    Imposition of a federal sales tax would bring the Federal government into direct competition with the states for tax monies, for 33 states now have general sales taxes.

  2. Reduce Federal Expenditures?

    Major amounts of the fiscal budgets are spent on:

    National Security outlays.

    Interest on the public debt and contractual obligations: e.g. Veteran administration pension and other benefits growing out of World War I, II and Korean War.

  3. Use Deficit Financing?

    If this method were adapted, it would not be as an occasional emergency measure, but probably annually. This in turn would very likely result in strong and persistent inflationary pressures.

  4. Whether the Federal government could afford, under the proposed amendment, to carry on the grants-in-aid, now extended to the states is another question.

April 1961 Top   Home   Newsletters June 1961