The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-01-12
Businessmen Back
Truman's Spending
Ask Tax Cut

| washington tL1 "A - He Coul-
mittee for Economic Development
| (CED), composed of middle of the
road businessmen, has proposed a
spending and tax program very
similar to President Truman's, and
in some respects more liberal than
the Presidents.
The CED program, made public
in advance of the Presidents, pro-
posed spending almost as much as
President Truman on welfare acti-
vities and defended the economies
effected by the Chief Executive. 1t
also recommended plugging some
of the biggest loopholes in the tax
structure, plus $2.25 billion tax
cut.
Based on months of study, the
CED proposal on taxes is sure to
draw close attention from the Pre-
sident's advisors now shaping his
tax recommendations to Congress.
1t also provides strong support for
his budget recommendations, which
are under bitter attack from Re-
publicans in Congress.
The report was approved by the
CED's Research and Policy Com
mittee headed by Marion B. Fol
som, of Eastman Kodak, and in
cluding such big businessmen as
Beardsley Ruml, of Macy's; John
ID. Bigger, of Libbey- -Okens Glass;
S. Sloan Colt, of Bankers Trust;
Clarence Francis, of eneral
Foods; Gardner Cowles, of the
Cowles Publishing family; Eric
Johnston, former president of the
Chamber of Commerce, and many
others of the same caliber.
1t was drafted by the CED's Tax
a nd Expenditure Subcommittee
headed by j. Cameron Thomson, of
Northwest Bancorporation; S. Bay
ard Colgate, of Colgate-Palmolive-
Peet Co.; Philip l.. Graham, of the
Washington Post, and others.
The report was based on the
CED's theory that budget and
tax policy should be established
which would balance the budget
with high employment, but not in
times of depression. The budget it
proposed would just about balance
under present conditions. With an
upturn in business to lower unem-
ployment to 212 million, which is
in line with Truman's program,
there would be enough of surplus
to pay $3,0C0,000,000 on the public
debt.
The CED's budget proposed cuts
in spending of about $6.6 billion,
but most of these cuts were al
ready provided in the Truman bud
get because of improving condi
tions at home and abroad. None of
the cuts were aimed at welfare
activities such as the Republicans
in Congress are attacking. Most of
these were specifically defended.
On the tax side, the CED recon-
a number of reforms in
cluding the taxation of future is
sues of state and local securities
which now provide a tremendous
refuge from taxation for the rich
and constitute one of the major
in the tax laws. Other
tax proposals would
1. Permit businessmen to bal |
ance losses in one year against pro-
fits in another.
2. Repeal about 81 billion of the
excise or sales taxes on such things
as travel, telephones, luggage,
etc.
3. Eliminate almost half of the
so-called "double taxation" of corp
orate dividends by withholding the
first bracket tax on corporate di-
as current tax payments
are now deducted by all employers
from pay envelopes and crediting
this amount on the corporation tax.
This, in effect, would cut corporate
taxes 2 to 20 per cent, but encour-
age the corporations to distribute i
more of their profits to stockhold- II