Evening star., 1939-08-19

observe just how far cooperation"
is availed Of when concretely offered.
There is no subject quite so i'm
portant to businessmen as taxation.
Demands for changes in the tax laws
have been rising in recent years.
Certain amendments have been ap-
proved by Congress, but every reso-
luton or declaration that comes from
national business organizations COM
plains about the taxes.
Now the Treasury Department,
which Is in charge of tax problems
for the administration, has asked
American business to point out the
changes In the tax structure which
are desired. Acting Secretary John
w. Hanes, who has requested busi-
nessmen individually and through
their trade associations to lay before
him and the Joint Congressional
Committee on Taxation any recon-
mendations, is himself an exponent
of the "co-operation" idea. When
he came to the Government from
Wall Street firm, he came believing
that If businessmen approached the
Government in the right spirit there
could be "co-operation.'
Makes Request Frankly.
1t so happens that Mr.. Hanes has
given many months of his time to
problems of taxation. 1t was largely
through his influence and strategy
that changes were made in the tax
laws in the last session of Congress.
When he asks frankly for sugges-
tions and data from businessmen,
1t Is not the act of a politician try
ing to project piece Of camouflage
or strategy. Mr.. Hanes means to
get something done about it. The
Joint Congressional Committee on
Taxation is not an ordinary COM
mittee. 1t has functioned very sci
entiflcally in the past and can be
trusted to do so in the future Work.
ing closely with the committee are
tax experts of its own and of the
Treasury, so that any suggestions of
a constructive nature are bound to
be given thorough consideration.
The time is propitious for the
study, too, for Congress is in mood |
to grant tax relief, and any changes |
agreed upon by the experts long In |
advance of the hectic days of debate |
are likely to survive the legislative |
process.
Unhappily there is no organization
to which the Treasury can turn as
the representative of all business
interests so as to get clear idea |
of just what amount of revenue
should be raised and from what |
classes Of tax rates it should be de-
rived. Thus, no organization is likely |
to present comprehensive tax plan |
designed to raise the required rev.
enue, even if there could be agree
ment on the size of budget for which |
the taxes would have to be raised.
Few See Broad Picture.
Instead, organizations and individ- |
uals will argue for reduction or
change in their particular types OF |
business or tax rates affecting them. |
The organizations that have spe-
cialized in taxation are few and far
between, and, with all the money
that has been spent by business
men for propaganda and education
on economic matters, 1t Is a strange |
commentary on their pre-occupa-
tions in other lines that they have
set up no research bureaus qualified |
to present tax plans of a compre-
hensive character.
Many businessmen will promptly |
say that If the budget Is cut and |
unnecessary expenses are curtailed, |
the tax problem will take care of |
itself. But, with possibly one or two
exceptions, no budget of Federal ex-
penses has been backed specifically
by any national organization of
businessmen. In the case of one or
two economy leagues there have been
budgets proclaimed, but these con-
tain arbitrary cuts which pre-
suppose that a majority of both
houses of Congress will desert the
farm vote, or that relief expenses
can be cut without political roper
cussions.
Even assuming $7,O00,0O 900
budget, which some of the Repub-
licans favor, it will require an in
crease In taxes to balance the budget.
Hence the Importance of finding
ways and means of making old and
new tax rates more productive of
revenue. Business has been for
mally asked to submit it's ideas and
this gesture of Cooperation" by
the Treasury Department represents
an earnest desire to get information.
To-
mittee on Taxation of the House and
Senate makes its report, it will be
interesting to check up and see
whether business actually "co-oper-
ated" and filed its amendments or
whether, as has been the case in
the past, the majority of the busi-
nessmen Of the country and their
organizations failed to file a tax
plan.