Evening star., 1939-03-04
Tax Relief Data
Promised by
Business Aid Move
Is Praised by
Secretary
BACKGROUND

BACKGROUND
Reluctance of business to un-
dertdke neD or expanded Den-
tures has been blamed on repres-
s1De tardtion or fear OF new
leuieS. Apparently sharing this
belief to some degree, admins
tration has indicated in recent
days that tar notifications MAY
be enacted. To similar end has
come agitation also far scaling
doUn OF Government erpendi-
lures.
Secretary of the Treasury Morgen-
thau said today he would be glad
to prepare information requested
by congressional leaders regarding
possible tax revisions which would
encourage business.
The information was asked yes
terday by Chairman Harrison of
the Senate Finance Committee and
Doughton of the House Ways and
Means Committee.
In a letter to the Legislators Sec.
retary Morgenthau said:
Il hasten to reply that We shall
be very glad to prepare the infor-
nation you desire, and to present
it to your respective committees at
your convenience
The Secretary said he appreciated
Senator Harrison's and Representa-
tive Doughtons pledge of cooper
alton with administration efforts
to aid business.
At the same time, it was reported
the Treasury Department already
has in preparation some tentative
proposals for revising corporate
taxes, among them the capital gains
and losses levies and the provision
for carryover of business losses
against profits.
A Slightly dampening note was
sounded by Senate Majority Leader
Barkley, however, to the effect that
he believed Senate sentiment gems
orally was opposed to sweeping tax
reviSions.
Economy Demands Gain.
Coupled closely with the tax
modification plans was the pressure
for economy, given voice most ef-
fectively by Senator Harrison in
statement released Thursday
night. Approval of his suggestion
that spending be reduced and that
critical thought be given the ex-
pected proposal to raise the statu-
tory limit of the Federal debt from
s45 900 900 900 to $4,000 900 900 was
extended today by Chairman Glass
of the Senate Appropriations Com
mittee and Senators Byrd of Vir-
ginia, Van Nuys of Indiana and
Adams of Colorado, all Democrats.
Il have talked to scores of busi-
ness men from all sections of the
country and they ali agree" said
Senator Van Nuys. They do not
want a breathing spell They want
assurances of a definite program
upon which they can rely and under
which they will feel justified in re-
habilitating and expanding their re-
spective industries"
Senator Byrd asserted that I'm
the reinsurance to business offered
by Secretaries Morgenthau and Hop
klns. I cannot find a single. sen.
tence indicating any determination
to economize anc 90 eliminate the
waste now existing in governmental
operations"
. Glass Wants Bigger Cut.
"Of course, I iidorse it," was the
comment of Senator Glass on the
Harrison economy plea. Il think
they could cut expenditures a good
deal more than 10 per cent, if they
would"
After calling Senator Harrison's
retrenchment plea a timely warm
ing, Senator Byrd predicted that
if the administration asks for an
increase in the statutory limit on
the national debt from s45 900 ,0OO,-
900 to $4,000 100000, this will be-
come one of the major battles of
the session"
Senator Van Nuys said that if
business can be assured that the
Government really wants to CO.
operate and not heckle and harass,
see no reason why the country
should not experience a speedy and
permanent industrial revival" He
said he was gratified by the recent
assurances to business by several