The Waterbury Democrat., 1944-07-24

button TO MAIN
tanning full employment; on the
other side Il Is argued that there IL
no use stimulating production un.
less consumers are left with enough
spare change 10 buy things pro.
duced. and therefore the primary
tax relief should be applied 70 IN.
disldual incomes and the sales and
excise taxes which curb spending.
Tax lobbyists and pressure groups
WI be working on these ldeas for
all they're worth during tie coming
months.
The question Of postwar tax re-
form was first posed by the Baruch
report as a step necessary In slim
ulsting reconversion and business
recovery. The Committee for Eco.
nomic Development. has also taken
the position that business could not
plan Tor the future unless IL knew
what the governments tax program
vas 10 be.
IT'S A VERY TOUGH JOB
But trying TO write a postwar tax
Dill IN advance Is more difficult
than any task that fellow Hercules
ever had TO perform.
Imponderables 10 determine be.
Tore tax measures can be framed
include estimating what the ma.
tlonal income viii be, what govern.
ment expenditures win be, how fast
the national debt Is 10 BE- retired
whether there will be initiation or
deflation. what price levels and
wage levels will be. what people viii
do with their savings. how many I'm.
employed there win be, what
people viii do with their savings,
how many unemployed there viii be,
what viii people want 70 buy, how
they win want 10 invest their money
for profit. Deciding those things
takes the wisdom Of six Soloin0ns.
Nevertheless, the experts are try
ing. They VIII probably have a
progress report for Congress when
Il reconvenes In August. There may
be q corporation tax simplifieatlon
bill before election. possibly another
transition tax bill after election,
with good prospects for gtill other
transition tax bills In 1895 and 1915.
Whether a postwar tax bill can be
written IN advance Is stu iinpos.
sible 10 say.
TEN PROPO6ALs--AND
HOLD YOUR HAT.
Among the specific proposals for
tax reform are these;
]. Taper off or repeal the excess
profits tax.
?. End double taxation of cor
p0rate profits BY eliminating either
the tax on the profit or the tax on
the dividends from profits paid out
rs individual income.
3. Reduce or eliminate al excise
taxes serving as a brake on buying,
except on tobacco and alcohol.
:. Grant tax exemption or pro-
vide tax incentives 10 capital going
into new business. new home con.
stFllcti0n and similar ventures, for
limited periods.
5, Give tax rewards 10 business
operating on low-profit margin.
Q, Rely more on individual, less on
corporation income taxes.
" tSffHN etS WsHtFtAAate " NbS
corporations tax liability 10 rs per
cent Of annual income.
3, Reduce estate taxes so as 10
encourage people 10 make and save
money. as Q further incentive 70
business investment,
Q, Reduce taxes on reserves SET
aside for Fee0nyersi0D,
10. Allow corporations 10 average
their taxes over fiye-yaar periods 10
level off profits and losses,
IN spite OF this Wide variety OF
proposals there Is no great freedom
of action IN making tax adjustments.
and things are going 10 get COM
plIeated IN trying 10 meet Ill the
leeds OF business expansion and re-
conversion, providing the govern.
ment With operating revenue, pay
ING something on national debt
Politicians sp0uting on these
things this summer are apt 10
promise YOU anything, 80 hang aai0
your hat and sanity