Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-05-15
Research Group Calls
For Less Spending 10
Avoid Tax Increase
By the Associoted Pres

Policy leaders of the Committee
for Economic Development said
yesterday that tax increase can
and should be avoided by a 81
100,000,000 cut in proposed Fed
eral spending.
But II efforts TO trim next years
record-breaking peacetime budget
fail, the Businessmen's Research
and Policy Committee said. then
Congress should raise taxes as the
lease dangerous course.
A committee statement pointed
to s3,421 ,000, 900 In new or ex-
banded" programs for the. fiscal
year starting July l as possible
places for pruning.
1t also asked for a slow down
In the $4,000, 100000 Federal
building program, plus adoption
of Hoover Commission reforms.
The latter can in time save per
haps billions" more. the state
ment said.
Higher Taxation Held Risky.
Higher taxation to support
higher spending would be par
ticularly risky at the present
time" 1t was stated, for this rea-
son:
There has already been a sub
stantial softening from the boom
economic conditions Of year ago.
Employment and production are
still high, as this is written. We
are not now in depression.
But no one can tell when the
decline may stop or how far 1t
may go. We should not. if we
can avoid it, add the real and
psychological impact Of a tax in
crease to the forces making for
the current readjustment."
The committee is privately
supported research and planning
organization founded during the
war to develop policies to sus-
tain high production and en-
ployment. It's past findings have
had some influence on legislation.
Statements on national policy are
issued by its policy committee.
Board Meets With Truman.
The statement was issued at a
news conference here. shortly
after President Truman, Secre-
tary of the Treasury Snyder and
other administration leaders met
the committee in an off-the-
record meeting.
It was one of a week-long series
Of verbal blows. struck in Con-
gress and elsewhere at MIR. Tru-
mans request for a $4,000, 000,-
900 tax increase. 1t also was an
indirect attack on the Truman
legislative program. since that
takes in most of the new or ex-
banded" spending plans.
I'm the present situation the
only acceptable course is to re-
duce expenditures. said the state
ment unanimously approved by
the 27-member Research and
Policy Committee headed by
Philip D. Reed, board chairman
of the General Electric Co.
Dangerous Trends Noted.
These possibly dangerous"
trends in spending were noted:
/. The Government is trying
to do an unprecedented number OF
things at once"
2. The 1850 OUTLAWS are merely
one step in "a rising expenditure
trend"
8. There seems to be no limit"
to the projects pressing for money,
for the President has stated his
budget omits many requests
which are desirable.
IF Government continues to ex-
pand so fast and in so many d.
rections at once" the committee
said, I'VE will suffer damaging
consequences to private economic
effort and individual freedom of
action.
THE committee feels there is
much evidence that we are in or
near this danger zone"
Economy Steps Suggested.
As economy steps, the commit
tee also suggested:
1. Strengthening the system of
the Legislative budget" under
which Congress is supposed to set
its own stop-limit on appropria-
tons.
2. Grouping all appropriations