Evening star., 1945-05-28
Small Business Group
Urges Tax Relief P|an;;
Wallace Halls Move
BY the Associated Press.

Tax relief for business, partly
effective next January and the
remainder after the defeat of ia
pan, was proposed in a report last
night by the Small Business Ad-
visory Committee which Secretary
OF Commerce Wallace termed a
magma carta" for those who COM
pose the broad foundation of Amer
ican trade.
The committee proposed an in
crease in the excess profits exemp-
ton from $4,000 to 5000, begin
ming the first Of next year, and
complete repeal of the tax after vic
tory in the Pacific. This recon-
mendation parallels a program sug-
gested two weeks ago by the joint
Senate and House Committee on
Taxation and approved by Secretary
of the Treasury Morgenthau.
Mr.. Wallace said that he regarded
the Small Business Committee re-
port, which also recommended other
aids to business, as IAN action pro-
gram which the Department OF
Commerce will put into effect to
the utmost extent that our finances
permit"
Reduction Plans Urged.
considering the problems faced
by small business" the report said
ut is believed that business taxes
rest with disproportionate weight
on this segment of the business pop
ulation, and it is urged that steps
be taken to effect a reduction"
The report urged that studies be
made Of various small businesses
throughout the country and that
booklets be prepared to advise the
potential operators of new small
businesses Of the pitfalls of their
particular fields. The booklets would
advise on basic factors such as the
selection of the site, judgment of
existing trade in various areas
iaInount of competition and amount
Of; investment which would be
needed.
Government guarantee of long
term loans to finance small business
enterprises was recommended by the
report, which asserted that equity
finance is often excessively costly
and hard to get"
1t was suggested that commercial
banks and other local financing
agencies which would originate the
long-term loans should be required
to participate to the extent of at
least 10 per cent.
Committee members who signed
the report were Chairman Ivan
Allen, sr., of Atlanta, Ga; Vice
Chairman Walter Ringer of Mime
apolis, Vincent L. Browrler of Des
Moines, Ernest G. Draper of Wash
ington, w. E. Harber of Shawnee
Okla; Lou E. Holland of Kansas
City, E. H. Lane of Alta Vista. Va:
Stacy May of New York City and
John R. Pinkett of Washington.
Planning Staff Proposal.
To accomplish a continuing pro-
gram to insure small business a
proper place in the economy" the
committee recommended:
l. A planning staff In the Com
merce Department "at the policy
level to receive and consider the
basic problems of small business
from time to time-their ability to
compete with large business and
their position in the economy"
2. An active program of study and
the production of educational book
lets, guides and manuals. This edu-
cational activity should be followed
through by an adequate application
program by means of personal con-
tact and publicity through the vari-
GUS field offices of the department. !"
On the management side, the
committee recommended prepara-
ton of large number of specialized
studies and reports "of direct and
immediate aid to small business. y
Larger organizations have the facil-
tiles for investigating, studying and
solving their own management
problems, the report said, but
smaller operators must look else
where for aid"