Evening star., 1939-03-03

Increase OF national income so
eristing tdr structure 1Dould
bring sufficient reDenue to bal
dnce budget has been an admin
iStration objective. Government
spending 1UaS expected to help
raise this income, but po1Dertul
economy movement has cropped
up in Congress. No1D agitation
to reduce some OF most reStric-
tipe corporate tares has arisen
and apparently bears ddminls-
trdtion tdDor.
A definite move for early revision
of the tax laws in any way that
would aid business and stimulate
Unemployment was made today by
Chairman Doughton of the House
Ways and Means Committee and
Chairman Harrison of the Senate
Finance Committee.
They called on Secretary of the
Treasury Morgenthau to submit,
as soon after March Is as possible,
recommendations for revising taxes
which "act as a deterrent to busi-
ness"
In a joint letter to the Treasury
head, the leaders of these powerful
committees promptly took up recent
suggestions by President Roosevelt
and some of his cabinet members
for cooperation between business
and government. They said their
committee members were in SYM
pathy with the administrations ef-
forts to encourage business.
The joint statement on taxes fol-
lowed closely the demand by Sem
ator Harrison last night for drastic
and substantial reduction in Gov
ernment spending to stave off higher
taxes or an increase in the debt
limit. The letter to Mr.. Morgenthau
read:
Dear Mr.. Secretary:
"As chairman of the Ways and
Means Committee of the House of
Representatives and the Finance
Committee of the Senate, we have
read with qualification the state
ment of the President, the Des
Moines speech of the Secretary of
Commerce, and your very fine state
ment in the newspapers, relative to
aiding business through the modi-
fication or elimination of any provi-
sions of the tax law which act as
a deterrent to business.
Ready to Cooperate.
1--WE appreciate that it is the in
tention of the Treasury to make no
recommendation to the Congress
concerning the Federal tax structure
until after the March Is, 1882 tax
returns are received and examined.
"As chairmen of the respective
committees having to deal with the
subject of taxation in the Congress
and believing that we express the
sentiments of our respective commit
tees, We would like to have. as soon
as possible after the March Is re-
turns have been received and ex-
amined, the views and recommended
tions of the Treasury Department
relating to any provisions of the tax
law which, in your judgment, act as
deterrent to business and which
in your opinion, come within the
scope of the statements to which we
have referred.
1--WE want to express to you and
others in the executive branch of the
Government our earnest and sincere
desire to cooperate in efectuating
the purposes recently announced by
those in high authority in the ad-
ministration. It is our belief that
the members of the Committee on
Ways and Means and the Committee
on Finance hold definite views re-
1ating to those matters which are
generally consistent with the pur-
poses recently announced; and we
believe that any well-defined recon-
mendations concerning such modifi-
cations of the present tax law as will
encourage private industry to in
crease employment, add to the pur-
chasing power of the people and
stabilize t.2e revenues to the Gov
ernmeEt will be most helpful. We
stand ready and anxious to Coop
crate"
Cut in Spending Asked.
In his statement yesterday, Sena-
tor Harrison had called for 'radi-
cal" curtailment of Government
spending as means of encouraging
business. Government economy was
not mentioned in today's letter to
Secretary Morgenthau, however.
Another development, viewed as
relating to Government business CO.
operation, was the appointment by
Secretary of Commerce Hopkins of
Gen. Robert E. Wood, chairman of
Sears, Roebuck & Co., as the Secre-
tarys adviser on business relations.
Gen. Wood will serve for about four
months.
A Hopkins aide said Gen. Wood
had accepted the job on condition
that it be temporary.
Gen. Wood, who is also a former
member of the Commerce Depart