Evening star., 1939-02-23
By the Associated Press,

By the Associated Press.
Secretary of the Treasury Morgen-
thau told businessmen today they
not only need not worry about new
taxes, but may hope for improve
ments IN present taxes to help busi-
ness.
Expanding and indorsing President
RooSevelt's statement of last week
that businessmen need fear no new
taxes, the Treasury head said:
Il sincerely hope that Congress
will take a careful look at the tax
laws and see If there are any deter
rents holding back business and
businessmen from making further
commitments.
I think the businessman ought to
feel that the administration wants
him to 60 ahead and take normal
business risks and make money"
To Borrow for Further Spending.
The Secretary said that no tax
proposals, except re-enactment of
expiring excise taxes and possibly a
measure to raise approximately
$500 100000 for farm benefits, had
been brought to his attention.
He indicated that even proposals
for new taxes to pay for increased
armaments have been sidetracked
for fear of depressing business and
he said 1t was likely" further de-
fense spending would be financed
by borrowing.
Mr.. Morgenthau told a press con-
ference he was not willing to say,
at least yet, whether there are any
deterrents to business in present tax
laws. He added that constant studies
Of taxes were being made in the
Treasury, and that if Congress asked
for any suggestions he would be
ready to testify on the subject.
Business Stimulation Only Hope.
The administration only hope at
present for increased revenue, he
asserted. was from stimulating busi-
ness and business profits, thereby
increasing the yield from present
tax rates.
He indicated nothing would be
done about taxes, however, until
after March IS income tax collec-
tions are in and give the Treasury
more definite revenue data to dis
cuss with Congress.
Starting OF his discussion Of the
Presidents no-new-tax statement
with an expression of gratitude that
Mr.. Roosevelt had made it, Secre-
tary Morgenthau explained:
For myself. the thing that
bothers me is that business men
and I see a good many of them
have what I call What's the use
attitude on going ahead.
Il feel this What's the use' atti-
tude is holding back business men
from expansion and taking what I
would call normal business risks"
No New Taxes Counted On.
He summed up his attitude with
the words: Il don't know what Con-
gress will do, but in making my
financing plans am not counting
on any new tax legislation"
The secretary again excepted re-
enactment of the retiring nuisance
taxes and a possible farm benefits
revenue measure He called the
possible farm revenue measure a
hangover from the last session"
because the last Congress failed to
act on a recommendation made at
that time by the President for pro-
v1dlng new taxes for any new bene-
f1ts ordered paid to farmers.
He added that the Treasury also
was studying the recommendation
OF the Social Security Board for
changes In the social security law
and was preparing estimates of cost
and a recommendation about the
proposals from some quarters that
Congress cancel the scheduled in
crease from ! to ~ per cent in old
age taxes on both employers and
employees in 1910, so the rate would
remain what it is now.
Secretary Morgenthau said he had
nothing to tell about his confer
ences with Brazilian Foreign Min
lister Oswaldo Aranha and declined
to comment on reports that Assist
ant Treasury Secretary Wayne C..
Taylor resigned because of differ
ences with the Secretary on inter-
national affairs