Evening star., 1944-03-26
Incentive TaxationHeld Vital
To Postwar Employment
Providing Work Through Private Enterprise
Declared Dependent on Allowances
To Coax Out Investors Funds
By Charles G.. Ross.


taxation" as a means of stimulating
private investment in productive enter
prise after the war. The argument is
not for lower taxes in the war period,
but for some form of postwar allowances
that will encourage investors to risk
their money on the expansion of old in
'dustries and the creation of new ones.
The argument proceeds from the
premises % that the making of jobs
after the war is primarily the concern
of private enterprise and CD that if we
are to have reasonably full employ
ment"-55 900 900 employed workers is
the figure generally accepted-annual
peacetime production must be stepped
up to some 140 billion dollars, as COM
pared with 81 billions in 1940
Industry says that it can do the job
after a transition period, during which
some governmental spending for public
works may be necessary-if only in
dustry is given favorable climate" in
which to operate. 1t says that a tax
system designed to put risk, or venture,
capital to work will go far toward the
creation of such climate"
Industry points to the experience of
the past. After the last war the de-
velopment of the automotive, chemical
and other new industries spelled large
expansion of production and employ
ment. Eighteen new industries created
in the so years up to the present war
supplied one-fourth of all the gainful
employment in the country before the
war.
Many Fields for Venture.
Give risk capital an incentive, say
the spokesmen of business, and it will
open up illimitable new frontiers. There
are new synthetic rubbers to be made,
new plastics in infinite variety, new
drugs, new dyes; just around the corner
is television, ready to be built into an
important postwar industry; air condi-
tioning, insulation, prefabricated hous-
ing await development, aviation holds
out an industrial prospect undreamed
OF before the war. This is but to suggest
the wonders which science and inventive
genius have made possible.
In the production of new kinds of
goods, says industry, lies a large part
OF the answer to the postwar problem
OF men and jobs. The other part of
the answer, of course, is in the ex-
panded production of the goods with
which we are already familiar. Both
new production and expansion, 1t is
argued, require the stimulus that would
be given through an easing of the bur-
den on new investment. Capital, in
other words must be given an incentive
to come out Of hiding and take a
chance. The interests of small busi-
ness, particularly, would be served by
peacetime tax revision with this end
in view.
1t is not only the spokesmen of busi-
ness who are arguing for the en-
couragement of risk in investment. The
National Planning Association, of which
William L. Bait, businessman, is chair
man and Robert j. Watt, labor official,
is vice chairman, recently issued a re-
port, on the reconversion of industry
to peace, signed jointly by the officials
Of its three ommittees-agricultu
business and labor. For labor, Clin-
ton S. Golden, of the United Steel
Workers Of America and Marion H
Hedges of the International Brother
hood of Electrical Workers joined with
the other groups in stating:
There must be adequate incentive
to encourage risk and responsibility.