Imperial Valley press., 1939-06-20
Bruce Cation in Washington
Disseets the News

WASHINGTON-An effort to
line up business and political
leaders behind a new plan de.
signed to achieve business ap-
peasement,' tax reductions and a
business revival is being pushed
here.
Back of the move is a group of
New York business men organized
under the name of United Indus
tries.
The plan they are submitting
for consideration on Capitol Hill
is, basically, a proposal to swap
$500,000000 in tax reductions for
men.
Two kinds of tax incentives to
create unemployment would be
offered business men, under this
plan. One would give cOmpenSa-
tive credits on income tax pay
ments to employers who put more
workers on their payrolls. The other
would permit up to one third of
taxpayers net income for a given
year to be currently nontaxable if
invested during that year in one
or more brand-neW business en-
terpriSeS, provided that such en-
terprises we're employers of labor.
Beyond these tax features other
concessions would be asked of the
government. These would include:
Elimination of the capital gains
and losses tax, except in the cases
of persons or firms in the business
CT buying and selling securities.
Revision of the Wagner labor
relations act 80 as to provide i'm,
partial treatment of employers and
employees, without impairing labor's
rights"
Modification of the rules and adj
ministration Of The Securities and
Exchange Commission so as to cn-
courage new capital issues.
The plan was drawn up by Don
aid r. Cotton and Henry Morse, of
New York, leading spirits in the
newly. United Industries.
In written statement accom-
paning the plan, submitted to the
House Ways and Means Committee,
they estimated that their plan
would take S500,00O,000 in taxes off
of the business community; on the
other hand, they figured that at
least 100000 men would be re-
employed and that the government
in this way would save $750,0000 900
annually in relief costs.
The plan was submitted too late
to get hearing before the House
committee. Congressman Thomas
H. Cullen of New York, a Demo-
cratic member of the committee,
said that he has been giving the
plan some consideration and that
it will unquestionably get extended
consideration later on, although it
cannot be worked into the tax law
Ievisions now pending.
Morse. one of the originators OF
the plan, says that the big idea
is to get united action fer an end
which all groups desire-business
improvement.
Everybody is doing plenty OF
criticizing,' he says. Business
leaders criticise the New Deal, and
New Dealers criticize the business
men. But nobody makes any con
structive suggestions. We're all in
terested in getting the country
back into a healthy condition, but
we don't get together on anything.
THE President and Congress
have properly said that taxes can't
be reduced because the unem-
ployed must be cared for We agree
with that-these men can't be left
tc starve. On the ather hand bu-
siness men properly say that they
can't go ahead and expand their
operations because they're held
down by taxes. We have presented
a basic idea showing how these
things can be handled
Back of United Industries are a
number of New York business
leaders some of them men of ma.