Russian Defense
Minister Accuses
U.S. Of War Aims
MOSCOW, UP! — Defense Minis
ter Nikolai Bulganin, accusing the
United States of warlike aims,
declared Saturday in a Red
Square speech that recent Soviet
armed forces, maneuvering with
modern arms and in nearly real
combat conditions had “achieved
a great deal to enhance their
military preparedness.”
But the greatest emphasis at the
massive celebration of the 36th
anniversary of the 1917 Red rev
olution was on the civilian side.
The Communist party and gov
ernment shortened the military
portion off the big parade. The
emphasis on the mass civilian
demonstration gave the day the
appearance of a great civilian fes
tival.
This was in line with the pro
gram of Premier Georgi M. Mal
enkov’s government to push mas
sive production drives in agricul
ture and consumer goods in order
to raise the living standards of
the Soviet people in two or three
years. The largest portion of Bul
ganin’s speech also stressed do
mestic and civilian affairs.
Bulganin, who received the sa
lute at Saturday’s military spec
tacle, said in a"15-miqute address
that the Soviet government stands
for the preservation and consoli
dation of peace and the settling
of all international tensions.
“The great poets are bo'rn,” re
marked the sententious person.
“Yess, and they are also dead,” re
plied the editor wearily.
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AKKAD
S, BJEN SON
President—Harding College
Searcy. Aekaasrs
TIME TO SWITCH
For the past 20 years govern
ment spending on war and de
fense preparation has been the
major stimulus for the American
economy. In those 20 years the
government has spent $775 billion,
which is 10 times more than the
total amount of money in circu
lation in the entire world. This
huge spending made the federal
government a tremendous factor
in the nation’s economic life. It
cannot continue indefinitely to
play this dominant role without
breaking down the economic and
political institutions that have
made our freedom and prosperity
possible.
Forty years ago the federal
government spent two per cent of
the national income. Twenty years
ago it spent 10 per cent of the
national income. Today it is
spending 25 per cent. If the peo
ple of America were to permit it,
this percentage would go on up,
and our economic freedom would
be correspondingly restricted.
Studies have shown that when
taxation goes much beyond 25
per cent all freedom is affected.
And history shows that a govern
ment will grow constantly in size
and power unless the people put
on the brakes.
Paralyzing Rates
In order to get the big money
it has been spending in recent
years, the federal government has
had to constantly push up the
rate of taxation. It is now has
pushed tax rates up to as much
as 92 per cent in the upper in
come brackets. The system levies
these high rates on business in
comes and then turns around and
levies heavy taxes on the same
money after ti has been divided
up in dividends to individual
stock holders. The most success
ful businesses must pay out in
federal taxes $9 for every $10
of its profits. This is a ridiculous
situation.
In the 20 years of big spend
ing, the family breadwinner earn
ing $4,000 a year saw his in
come taxes jump from $44 to $488
a year. The $25,000 individual
income of 20 years ago was taxed
$2,500; today it’s taxed $7,500. In
the calendar year 1953, President
Eisenhower gets $150,000 salary,
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Mrs. W. H. Ullrich Given
Surprise Birthday Party
Mrs. W. H. Ullrich was honored
with a surprise birthday party
Saturday night at the home of Mr.
and Mrs. Frank Johnson.
A very entertaining hour was
spent, while Mrs. Ullrich opened
the beautiful presents and heard
a special radio dedication.
After all the presents had been
opened and examined by all the
guests, a delicious, family-style
chicken dinner was served. An en
joyable impromtu performance
was given by Mr. A1 Enix, while
the guests were eating.
Guests attending this enjoyable
affair included Mr. and Mrs.
Frank Johnson, host and hostess;
Mrs. W. H. Ullrich, guest of hon
or; Mr. and Mrs. A1 Enix, Mr. and
Mrs. J. W. Lyons, Mr. and Mrs.
Richard Roell, Mr. and Mrs. C. G.
Boucher, Mrs. William Hohsbur
ger, Ben Mozee, Jack Morosco
vith, Phil Phillips, and his broth
er, Marshall Phillips.
and he has an additonal income
estimated at $10,0.00—a total of
$160,000. His federal income tax
is $92,0000.
Study Made
Tax rates such as these put a
heavy yoke on ambition and crip
ple the profit motive which has
sparked oiir nation’s progress.
They would be permissible for a
short time in extreme national
emergency, but otherwise they
are detrimental to freedom and
progress. The U.S. News, one of
the top ten weeklies, has recent
ly completed an intensive study
of taxes and how they operate to
stifle or stimulate the private ec
nomy. Here are some significant
conclusions:
“Steep, progressive tax rates on
income have resulted in diminish
ing returns in peactime from all
income groups earning $25,000 or
more a year. In other words, as
the rate went up, the resulting
revenue was proportionately less
than the tax collector might have
expected.”
Incentive Is Key
“Tax rates, when reduced,” re
ports the magazine, “have tended
to bring an expansion in taxable
income and to result in less loss
of income than the rate cut might
suggest.”
“Clearly investment is discou
raged by the present tax system.
But if capitalism is to work, in
vestment in risk-bearing enter
prises is essential to growth and
expansion.”
It is true that in the last 20
years American industry has' ex
panded. But the expansion has
been stimulated largely by the
federal government’s huge ex
penditures on war. We dare not
accept a war economy longer than
is absolutely necessary because of
the danger of federal government
dominance becoming permanent.
The transition away from this
dominance should begin at once.
As the shift is made private en
terprise can expand normally and
wholesomely if tax rates are cut
so that incentive for investment is
restored. Given normal incentive
the private enterprise system will
carry our nation to higher and
higher living standards, whereas
a government dominated system
would shortly begin lowering our
standard of living.
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