[The bill] tends to retard the increase of pay rolls, because of the absorption of this amount of money for taxation purposes; it retards the increase of employment also. It is a permanent tax, with no limit, regardless of economic conditions in general or of the individual company. In other words, it may be the last straw, as I said before, that puts this company over the line into bankruptcy.
There is probably no greater need at the present time than for opportunity of employment. Through a long period in our country both law and public opinion reflected the universal approval and the good will felt toward those capable of giving employment to men and women who needed jobs. Yet, the imposition of this tax would be a complete reversal of that attitude. It would indicate either that employment is held undesirable and should be discouraged, or else it could properly be considered as an attempt to penalize unemployment.
…in regard to the ultimate consequence of this legislation, that is leaving aside the effect that might be produced this year or next year, on pay rolls, we wish to point out the added incentive it creates for the more rapid introduction of labor-saving machinery for the definite purpose of reducing the total taxable pay roll and thus add to the unemployment....Further there is always a maximum labor cost that any industry can meet and there will be a definite increased tendency for employers to consider this tax as a part of the wages of their employees and keep the direct wage paid as low as possible to reduce such wage by the size of the tax itself; I am indicating that only as a natural business tendency.
It [this bill] would increase unemployment by aggravating the very conditions which it is attempting to correct, by crippling the agencies which furnish opportunities for employment, by discouraging efforts to relieve unemployment, and by placing a premium on idleness.
You are about to lose a substantial amount of advertising revenue from food, cosmetic and drug manufacturers…You need to bring all the personal pressure you can upon your Senators and Representatives. You need to enlighten and thereby arouse your public against this bill that is calculated to greatly restrict personal rights….We would be only one of the many drug, cosmetic, and food advertisers who will be forced to liquidate in this manner.
[The bill] will seriously affect employment and morale in the industries indicated. It will put thousands of men and women out of work. It will close dozens of manufacturing plants and hundreds of stores...It will hurt thousands...It will help none...When the ‘Tugwell’ Bill is introduced in Congress, it must be defeated.
Labor commissions, factory commissions and investigations, commissions on every subject in the Business Directory, have chilled capital; and when capital catches cold, labor freezes to death….Is the main cause of the lack of work hard to seek? Is it not that business has had too much interference from the state…too many everlasting commissions first prying into every man's affairs, and then telling him how to run them?
We are of the opinion that if the present recommendations are insisted upon…factories will be driven from the city, labor will be compelled to accompany them, factories, tenements, and small houses will become tenantless with the final result of demoralization in tax collections by the city. What is wanted is evolution and not revolution.
This condition is depreciating the value of real estate, restricting its marketability, and driving manufacturers out of the City and State of New York.
The Real Estate Board of New York is informed that thousands of factories are migrating to New Jersey and Connecticut in order to be freed from the oppressive laws of New York State.
