The Wilmington morning star., 1946-06-23
FIVE-YEAR PLAN
Revolutionary Program
Could Not Be Effected
For Two More Years
BY JOHN l.. STEELE

WASHINGTON, June
Congressional tax experts are
working on a revolutionary five
year tax program designed to re-
place the traditional year-to-year
tax programs, it was disclosed to-
night.
Chairman Walter F. George, D.,
Va. of the joint committee on
internal revenue taxation said the
proposal now is in the "study
stage. He said congressional ac-
ton on the proposal cannot come
before 1913 because that will be
the first year in which govern
ment war spending will not be
a major consideration in draw
ing up a tax bill.
The study is being made by a
group of experts headed by Colin
F. Siam, chief committee staff
director.
George, citing the benefits of a
five-year plan, said it would:
1. Enable businessmen to deter
mine their tax commitments well
in advance, thus enabling a "real-
istic'' appraisal Of what funds they
can make available for postwar
expansion ard re%conversion OF
their enterprises.
2. Enable individual income tax
payers to determine how much
Of their earnings will be syphoned
off into the federal treasury and
how much they can set aside for
home purchasing and other en-
terprises.
Some congressional objections
to the plan already have been
raised. They are based on I'M
willingness of some members to
commit future congressman to any
tax program they did not write.
Another objection comes from
those who do not believe that fed
eral expenditures Ear be deter
mined in advance.
George said a long-range tax
program WOULD require oefinite
advance scheduling Of expendi-
lures and close teamwork be-
tween committees responsible for
spending and taxing.
Two proposals along these lines
have been made already. A senate
approved bill sponsored by Sen.
Robert M. I;afollette, P, Wis.
provides for adoption of annual
federal budget totals by joint &C
ton Of the house ways and means
and appropriations committees,
acting with the senate finance
and appropriation groups. Con-
gress. under Lafollette's plan,
would be required by record vote
to authorize expenditures in ex-
cess of government revenues.
The other proposal. made re-
Gently by Rep. Harold Knutson,
R., Mimi, provides that lower
tax rates would become ap-
plicable only if government ex-
penditures were reduced.
Experts working on the program
indicated they face some major
obstacles, among them initiation.
It was pointed out that runaway
prices would make impossible adj
vance scheduling of taxes. Anoth-
er question mark involves indus
trial peace. One expert said if
the country faces another round
of strikes and wage increases gen.
~o" bv rising prices, advance
scheduling of taxes will be i'm
possible.
1.-THE whole question revolves
around a stable economy, advance
planning of federal expenditures
and a definite feeling that no for
eign or domestic crises will up.
set the nations economy" STAN
said.
Another major consideration in
wolves military appropriations in
peace-time years. The merger is
to support a large or small mill
tary and naval establishment is a
paramount factor, it was pointed
out.
Proponents of advance tax
scheduling appear to be divided
on whether schedules shall be set
and frozen for a five-year period.
subjected to year-by-year read
just1nents or keyed to expendi.
lures by some formula written into