Evening star., 1942-02-08

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ministration program which he breaks
down as follows:
Cd High corporate-income and excess
profits taxes.
90 Sharply progressive estate taxes.
80 Broadening of individual income
tax base together with steeply graduated
surtax rates.
a Sharp increase in excise taxes on
commodities competing with the war
program.
90 Part payment of wages and sala-
ries in Defense bonds.
60 Qualitative shift in the compo-
nents of consumption.
The last named point refers to such
changes as the use of wood and concrete
in place of steel and copper. and cotton
in place of wool. Something like item
No. S may be enacted through a with
holding tax if the item itself is not
adopted.
Proposed Tax Plan.
For the postwar period, DR.. Hansen
advocates these policies:
Cd Retention of progressive (gradu-
ated tax structure and broadened tax
base, with major emphasis on the in
dividual income tax and less reliance on
the corporate income tax.
ca Sharp reduction In defenss con-
sumption taxes.
go Adequate plans by private enter
prise for private te-investment projects in
manufacturing plant and equipment, in
railroads, public utilities and housing.
a. Adequate program Of public-im-
provement projects including a Nation
wide development of national resources,
express highways, urban redevelopment
Involving, among other things, outlays
in terminal facilities and reorganization
of urban transportation, and reorga-
nized public housing program Gnclud-
ing the setting up of housing research
ton costs and thus enlarge the scope
of private housing construction.
90 Expansion of public-welfare ex.
penditures+Federal aid to education,
public health, old-age pensions and
family allowances. This involves partly
an expanded program, and partly .
means Of reducing State and local prop
erty and consumption taxes, thereby
stimulating private consumption expen-
ditures.
60 International collaboration to pur.
sue internal policies designed to pro-
mote active employment; to explore de-
velopmental projects in backward coun-
tries, and to implement ways and means
to open outlets for foreign investment,
promote world trade and the effective
worldwide use Of productive resources
DR.. Hansen's proposals contain nothing
novel or unorthodox. Many Of his sug-
gestions agree with the conclusions Of
the Brookings Institutions studies Of
Americas capacity to produce and con-
sumo. As DR.. Hansen and the institu-
ton see the American industrial ma
chine, 1t runs on four or six of its eight
cylinders except for. short spurts during
boom times.
Problem of Unemployment.
The problem, solved only In part by
the New Deal until the war emergency,
is to find employment for all able and
willing to work. The 1910 average of
employment was 100000 persons. DR..
Hansen estimates that in 1943 or 1914
the number available for industrial and
military employment will be 12,000,0 900
to 5000 900 in excess Of this figure.
According to semi-oficial predictions,
10000, 900 men will be in the armed forces
by 1914, other millions will be in defense
industries
This labor potential" DR.. Hansen
grimly observes, cannot suddenly be
put to work in industry. Experience,
both In the United States and Germany
the countries that experienced the
most rapid expansion from the great
Representations that the task of re-
training and fitting large masses of
labor into the productive process is a
slow and difficult one.
Even in a totalitarian country, with
its powers of regimentation and control,
it was not possible to increase employ
ment except at a fairly moderate rate.
In no single year, in the expansion from
1888 to 1889, was Germany, even with
its compulsory labor regulations, able
| to absorb more than 100000 workers.
With q population half the size Of ours,
this would mean, In terms Of our popu-
lation, $500, ,000."
l program will soon create full employ