Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-26
100000 Job Gain
In May Reported
Bye. |. @. Survey
Economic Outlook Sees
Excess Profits Tux Plan
As Ineffective

Unemployment in the United
States decreased by nearly half a
million between May and June, ac-
cording to the August issue of the
Economic Outlook, monthly c. I. o.
survey, released today. The figures
for June was 1913 900. Non-farm
employment increased 235 900, well
above the normal seasonal gain, it
was reported.
The excess profits tax legislation
now before Congress will be effective
neither las a device to raise revenue,
nor as brake on excessive profits"
the Outlook declared. An eXpendi-
ture of from $4,000 000,0 900 to $6,000.-
100000 will produce revenue of
only $300,000,000, it pointed out
This involves an effective tax rate
of about 35 per cent, it was said,
as compared with the effective rate
Of 30 per cent on excess profits i'm
posed by the World War legislation.
Corporations Blamed
Responsibility for this situation is
placed by the Outlook on corpora
tons which have refused to accept
defense orders until they were
granted extensive tax concessions"
Although the jam has been some
what broken, this has been accom-
plished, it charges, through the use
of a highly questionable" device
by the National Defense Commits
sion. In letting contracts. it said,
the commission has agreed that
should tax changes satisfactory to
the manufacturers not be made by
Congress, the manufacturers will
have the right to cancel the con-
tracts. and refuse to produce This
would give private industry the right
to stop major national defense pro-
duction on its own motion
Industry also has obtained adj
ministration approval for the amorti-
zation of new plant costs over a
period of five years instead of the
more customary 20, and the lifting
of the profits limitation Of the
Vinson- Trammell Act, the outlook
asserted. Industry, it charged. had
refused TO expand plants and in
some cases to take new defense
orders until their demands were
accepted. Congressional committees
are now considering plans which
in substance accept the demands Of
industry"
100000 Jobs Forecast.
Arms employment will create be-
tween 100000 and 100000 new
Jobs. according to c. I. o. estimates.
"The terrific impact of chronological
change continues" the Outlook said,
with the steel industry reporting
that although the industry has re-
turned to the monthly output levels
of 1887. 1t is employing $1,000 fewer
workers.
Trade with Europe is off and pros
poets for revival after the war are
declared anything but bright. Eff
forts to replace European with South
American trade have not yet ap-
peared very fruitful. Finally, no
plans are in sight to deal with the
terrific crisis that will come after
the arms program is completed or
suspended"
No evidence has been presented
to show that a shortage Of skilled
labor exists for the defense indus
tries. the outlook said. The c. I. o.
publication contains a chart, COM
pairing the pay of an American
soldier with workers in various in
dustries and with w. P A. pay. The
low pay of the soldier, $21 month,
it said. is one reason why Army
enlistments are not greater. With
higher pay, it declared, it would be
possible to secure by voluntary en-
listment all the soldiers needed.