The Waterbury Democrat., 1944-09-15
Unemployment Threat To ''Free Enterprise"
New England Business Executives Hear Address By
 Former Tax Counsel, Partner of Wendell WiIIkie

Boston, sopt ib- NEC) = New England business leaders were warn- cd today that large scale unemploy- mont after the war would constitute Q great threat to tho system of free enterprise" by Thomas N. Tarleau, law partner Of Wendell Willkie and former tax counsel to the United States Secretary Of the Treasury, ct the 70th Quarterly Meeting of the New England Council at Hotel Stat Ter here.
 Discussing the recent proposals of the Committee for Economic Devei- opment for revising the federal tax system to facilitate production and maintain e high level of employ- ment, Tarleau commended the rec search committee of the CED for It's courage in tackling on enormous ly complicated problem. Chairman Of tho CED researcl committee is Ralph D. Flanders, former president of the New Er gland Council, and presiden tof the Federal Reserve Bank of Boeton.
 A tax system that can be admins istered ct Q fair cost and having taxpayer compliance Is of para mount importance, according to Mir. TarleGu.
 Any good tax bill must not be fair and equitable with e minimum of deleterious effects on business an Unemployment and be adequate to raise revenue, but 1t also must be capable of being administered so that compliance cost and general popular acceptance are ct 6 proper level" he said.
 Tarleau challenges the CED's as. supmtion in its tax report that the income In the years follow ing the war will be at least l40 bile lions, figured at l04S prices. The CED had predicted that this figure would be surpassed within the first decade after the war, and its report proposed to balance the national budget on this level of income and expected Q sizeable amount of debt retirement. The CED tax proposals would raise yields ranging from I'll to 19.5 billions depending on dif- feyences in tax rate.
 '"The question remains whether the post-war budget will be suffi- ciently small so that these yields will not only balance the budget but provide for debt retirement" said MT. Tarleau. Tn my opinion, there is a great danger that the budget ftr some time after the close of the war will be in excess of even 18.5 billions of dollars. It seems to me to be dangerous to assume that at l9.5 billions revenue. any debt retirement is possible"
 Although MT. Tarleau professes in agreement with most of the CED tax recommendations as a program of sound-thinking," he criticizcs the CEDs proposal to in- teerate corporation and individual taxes and calls the CED proposals the capital gains. gift and taxes "unsound and inc adequate"
 However, he was in agreement with the GID proposal that corpor- ate and non-corpora.e business carry forward all losses for a per- Tod Of ss xyears as against the exist Ing law allowing a carTy-back of two years and & carry-fcrward of two years.
 The CED study lists five general obiectives in maint ming a high level of production and employment.
 1. The graduated personal income tax should provide at least one-half of the total and federal revenues necessary.
 2. Excise and zaies taxes should be frightened as much as possible.
 8. Taxation against business oper- ation should be frightened te tks greatest extent possible.
 Serious inequitseB of tAe tnz system should bo removed.
 6. Federal taxation should he heavy erouRh 70 balance the budget