Evening star., 1944-01-19
|RumI Gives 9-Poinf
Postwar Fiscal Plan
Ito House Committee
BY the Associated Press.

BY the Associated Press
A nine-point postwar fiscal policy
calling for reduced taxes, a bal
anced budget and planned pro-
gram Of public works--was advanced
today by Beardsly Ruml, New YORK
Imerchant-banker and author of the
ay-as-yau-go tax plan.
He submitted it to the House
Committee on Public Buildings
and Grounds. now studying postwar
planning, with the preface that If 1t
makes sense, there are no constitu-
tional or technical reasons" why it
cannot be adopted now. He pro-
posed:
l. No public spending for its own
sake and no projects merely because
they support purchasing power in
general. Let us base our budget
estimates on the efficient and eco
nomical carrying out of worthwhile
activities to accomplish our national
purposes.
2. Lower tax rates ito the point
where they will balance the budget
at an agreed level Of high employ
ment - Taxes should be reduced
where they will do the most good in
creating demand and in encouraging
private enterprise"
Stabilize Taxes.
3. Then stabilize taxes except as
there are major changes In national
policy. When employment goes be-
yond an agreed level, or If, with high
employment, we have a boom in
prices. let US hold the surplus or use
it to reduce the national debt, not
as an excuse for further tax reduc-
ton"
4. Retention of the principle of
progressive income taxes and estate
taxes las the best way of reversing
the tendency Of purchasing power to
come to rest Let us reduce the rates
on the individual income tax to
stimulate consumption and to make
~~-ip investment in new enter
prise on a business basis"
5. A planned public works pro-
gram, mot to balance the whole
economy, but to help toward stabiliz-
ing the construction industry"
6. Let us neutralize the social
security programs as far as their
fiscal influences are concerned Since
their beginning they have been
highly defationary; for old-age Sc
culrity let US set our rates and bene-
fits so that they come somewhere
near balance. and for unemploy.
ment insurance let us set our rates
so that intake and outgo balance at
high levels of employment"
Retain Excise Taxes.
7. Retain important excise taxes
for the time being "and get rid OF
the rest
8. Let us arrange our lending
abroad, whether for stabilizati ton
relief or long time reconstruction
so that it will support rather than
contradict fiscal policies adopted to
strengthen our domestic economy"
9. Reorganization of the parts
Of the Federal Government that
have to do with fiscal policy and
dlloll. WC WdIll CldIlly
in policy. consistency in administra-
ton and cooperation between the
executive and legislative branches"
Mr.. Ruml told the committee that
during the transition period after
the war, the nine point program
would provide flow of purchas-
ing demand, which springs au-
thentically from the tens of millions
whose tax burdens will have been
reduced"
1T. will" he said, express in a
mosaic aggregate the popular in
depreciation of the American way
of life as pictured in consumer
preferences. Against this back
ground, the readjustments of en-
ployn1ent and the reconversion OF
business and industry can more
readily occur"