Annual Meeting Home   Newsletters

April 1962

May 1962

Annual Meeting Time
Teru to Convention
How Much Is Enough? (Gracia Bell, Maki Ichiyasu & Alison MacBride)
Report on the Local Agenda
Coming Attractions
Japan LWV President to Visit
Still in Jail
Voters Service Committee
Wedding Bells
LWV of Honolulu Expresses Opposition to Repeal of 16th Amendment
Time for Action in Support of the Trade Expansion Act of 1962
Your League Dates in April!!
Job Well Done
There Is a Deadline You Know!
Miss Your Bulletin?

LWV of Honolulu Expresses Opposition to Repeal of 16th Amendment

The National Program of the LWV of the US states the following Continuing Responsibility: "Opposition to constitutional limitations on tax rates."

Regarding H.C.R. No. 6 the letter below was sent to all legislators and to the Press. A reply was received from Speaker of the House Elmer F. Cravalho (he agreed with the LWV position). The resolution has been filed in Representative Loo's committee and has been inactive since.

Dear Legislators:

Re: H.C.R. No. 6

The reported intention of the Hawaii Committee for Economic Freedom to encourage a resolution, calling for a Convention to repeal the income-tax amendment to the Federal Consitution in the present legislature, prompts the League of Women Voters to share with you the following information.

Under the Federal Constitution (article V) it is mandatory on Congress to call a Convention when petitioned to do so by two thirds of the legislatures. League opposition to the 25% tax limit legislation is based on the inadvisability of freezing into the Consitution an arbitrary percentage limitation on federal income taxation and on the conflict between a maximum percentage for income taxation and the principle of "ability to pay".

It would be necessary to find ways and means of making up loss of tax revenue if the fiscal policy did not reduce expenditures or resort to deficit financing. A likely alternative revenue source would be the general sales tax. This would bring the Federal Government into further direct competition with the states for tax monies, for 33 states now have general sales taxes. If the 16th Amendment were repealed, a general sales tax of about 29.5% would be required to make up the loss. Excluding food, a 39% tax would be needed.

Reduction of federal expenditures has been proposed. However, serious consideration must be given the national security outlays, interest on the public debt, grants-in-aid to states and localities along with the contractual obligations, (Verterans Administration and vererans' pensions).

As you no doubt know, any stand which the League reports is a result of concerted and detailed study of the facts available. When you take a position on a local or national issue be sure you weigh all the facts.

Sincerely yours,
Dr. Teru Togasaki, President
League of Women Voters of Hawaii

Annual Meeting Top   Home   Newsletters May 1962