Wartime Taxation and Economics

From the minutes of the Pasadena League of Women Voters on League Day, November 10, 1943—a perspective on domestic economics during wartime. Our League was studying the issues of the day by researching and role-playing the work of the House of Representatives.

About one hundred members and guests were present. Mrs. Stone opened the meeting by explaining that we had assembled to discuss the vital problems of taxation. That she wanted to conduct the general meetings as study groups. That she would ask various members from time to time to study different problems and to report their findings at the general meetings for discussion. That such a group had studied the problems of finance confronting our Government at present, and that they had assembled many facts and as a method of presenting these facts this meeting would be conducted as an authentic reproduction of a session of the House of Representatives. She explained the informal method of discussion often used in the House and then proceeded as Speaker of the House to call the meeting to order.

Mrs. Scott as chaplain of the House read a short prayer. It was moved that the House resolve itself into a “Committee of the Whole.” And the speaker appointed the Chairman of the Ways and Means Committee (Mrs. Elmer Kruse) as Chairman of the committee. Mrs. Kruse read a resume of the tax bill which is now being considered by the real House of Representatives and asked for discussion. League members then spoke, each as a State representative, and presented the dangers of inflation, of deficit spending, etc., and discussed economy in government expenses, the need for increased revenue to finance the war, and the various ways of raising money, such as bond sales, excise taxes, income taxes, and a national retail sales tax. Mrs. Kruse read a report of the discussion to Mrs. Stone (the Speaker). The session of the House was adjourned, and the League of Women Voters proceeded to have a general discussion.

It was unanimously agreed that government economy was very necessary, that additional taxes would also be necessary, and that excise taxes would not be enough. Mrs. Stone asked whether the members were ready to vote on whether they thought that higher income taxes were preferable to a national retail sales tax. But it was decided that further study would be necessary before the Pasadena League could go on record as favoring either one or the other type of taxation. It was decided to postpone a vote until the next meeting in January.

—Elsa Pendleton, Compiler