Evening star., 1947-12-08
Snyder's S Talk Raises
Hopes for Tax Slash
At Regular Session
Administration Seen
Willing to Compromise
Announced Conditions
Bv David Laurence

DUpIU A0Cy CHCC
The Truman administration has
decided to approve tax-reduction
bill at the regular session Of Con-
gress, provided one important con-
dition is met.
There must be enough money
available after providing foreign
aid and certain sum for debt
retirement to yield a surplus for
tax reduction.
Most of the experts on Capitol
Hill who are familiar with the
budget figures and the anticipated
tax receipts now estimate a sur
plus above the domestic and for
eign aid items sufficient to take
care of foreign aid, debt retire
ment and tax reduction.
Equitable" Held Ambiguous.
On how much remains for tax
reduction depends to some extent
what sort of tax measure will
be signed by the President. There
must be equitable tax revision"
Just what is meant by equitable
is open to wide differences OF
opinion and yet, as happens with al
legislation for which there Is q
genuine demand, a compromise u
not difficult to work out.
The administration point of view
has Just been disclosed in speech
at Houston, Tex, delivered over the
week end by Secretary of the Treas
ury Snyder. 1t Is one OF the bes'
speeches that has come from any
member of the Cabinet on the
economic outlook and 1t contains
many sensible statements worthy
of careful examination.
Economic Needs Recognized.
Thus Secretary Snyder says un-
equivocally that zone OF the most
effective steps we can take in Gov
ernment towards fiscal soundness
would be an equitable revision oil
our tax structure which today does
not fully meet the requirements OF
our modern expanding economy.
Mr.. Snyder recognizes frankly
that there are obstacles in our tax
system which, If unchanged, would
sooner or later interfere with ex-
banding markets for the products
of American industries" He asks
that attention be given to some OF
the ineouities which have crept into
the American system and-tolerable
during conditions of war-shoulo
now be eradicated."
Mr.. Snyder does not hesitate to
point out the inequities as between
an incorporated and unincorporateo
business and the fact that corpora
ton stockholders pay twice in what
is known as double taxation OF
dividends" The Secretary referred
specifically, too, to some OF the ex-
else taxes and especially the tax or
the transportation of freight, which
together with other excise taxes
produce "unimportant amounts OF
revenue or are unduly burdenSome
on individuals with low incomes
and still other excise taxes which
would under less favorable business
conditions make 1t difficult to carry
on profitable enterprise"
Repeats House Comments.
The Secretary expressed his views
in somewhat general terms, but
there was no mistaking his meaning,
especially as he took occasion to
reiterate comments he made in May,
1e47 before the House Ways and
Means Committee. One paragraph,
particularly, taken from that testt-
mony which he quotes now In his
Houston speech, reads:
"The tax system should produce
adequate revenue. 1t should be
equitable in its treatment of differ
ent groups. 1t should interfere as
little as possible with incentives to
work and to invest. It should help
maintain the broad consumer mar
kets which are essential for high
level production and employment"
When the man who has the para
mount influence in the Presidents
cabinet on fiscal and tax matters
comes out clearly for sound prin-
ciples of tax revision, 1t is healthy
~ beginning. Certainly, the manager
iaI class and the persons with In
comes between 5000 and $4,000 6
wear who have taken the deepest cut
in "take-home pay" Of any group ir
America during the war and since
vi day have not been treated equi
tably. Certainly, this is the clas!
which in the past has been thrifty
and bought out Of its savings tn,
securities on which our whole risk
capital system has been dependent
It is encouraging to f1nd the Sec.
retary of the Treasury adopting ar
objective approach to the problem
of tax revision. For 1t isn't q mere
matter of tax rates for particular
brackets. 1t isn't really a matter
Of how much money is saved fol
one group as against another. 1t Ii
at bottom a problem of how to keer
the economic system healthy by
preventing the introduction of state
socialism wherein the government
not only furnishes all the capital fol
business, but also regiments the
workers. Tax revision contains the
key to the preservation of a sound
economic system and to the main
tenance of full employment and
high-level production. The Secre-
tary OF the Treasury, Democrat
says SO.
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