The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-03-09
Liberal Tox Spokesman Mokes
On Choirmon Doughfon
By DONALD WOODS
For Labor Press Association


Washington UPA) - For the
first time in history, liberal
spokesman has made an impress
sion on the House Ways and Means
committee in arguing for a pro-
gressive tax system, designed to
promote full employment rather
than merely to balance the budget.
He was Robert N. Nathan, noted
labor economist, who appeared as
spokesman for the American Vet
Grams Committee (AVC), to urge a
flexible tax system that could be
geared quickly to economic needs.
Nathan appeared on the next to
last day of hearings, but his state
ment interested the weary commit
tee enough so that Chairman
Doughton Cd, NC) kept him on
the stand an extra half hour ask
| ing his views on tax issues. The
veteran committee chairman COM
mended Nathan's statement and
said he had been "very much inter-
ested in it," and felt Nathan was
taking a "broad, patriotic view"
This was the first time liberal
tax witness has ever made such an
impression on Doughton.
Nathan stressed the idea that
taxation is the governments most
useful vehicle in maintaining econ
omic balance and full employment.
He said the current unemployment
of a, S to 6 million indicated there
was not enough purchasing power
to keep industry running full tilt,
and urged repeal Of all wartime
excise or sales taxes to spur buy
ing
"We believe" said Nathan, chat
the level and composition of taxes
can and should be varied primarily
in accordance with the economic
needs of the country. Thus if there
is need for additional buying pow
er in the hands of consumers so
that industry can sell its products,
then taxes should be reduced in
such a manner as to leave more
money in the hands of the lower
income groups. On the other hand,
when the country is threatened
with initiation, taxes should be in
creased"
Nathan pointed out that the ex-
else taxes were enacted to cut all
consumption during the war and
that they were no longer needed.
TO recover revenue lost by cutting
sales taxes, Nathan stressed the
Presidents proposal for plugging
loopholes. He urged the committee
"to take immediate measures to
eliminate these special privileges
and to take such action simultan-
eously with repeal of excise taxes"
Nathan mentioned particularly
the loopholes permitting oil oper-
ators to escape taxes through the
depletion allowances which he said
were Enthusiastically large" and were
entirely unjustified. Plugging this
loophole, Nathan said, would bring
in tremendous revenue without
hurting business.
The AVG spokesman urged the
committee to set up an impartial
Hoover commission" to survey the
entire tax structure and make re-
commentator for the long needed
revision of the entire system in
the interests of maintaining full
employment.
"There are disturbing signs"
he said, (which indicate that we
may not continue to enjoy good
business conditions. Obviously this
country cannot resign itself to a
return of the old days of recurring
booms and busts. Unless positive
measures are taken by the federal
government to create the environ
ment within which business and
labor and farmers can produce and
consume the vast quantities Of
goods and services which our re-
sources permit, we shall certainly
suffer recurring depressions. Rath-
er than worry about the possibil-
ity Of mass unemployment and bus
mess bankruptcies at some date in
the future, we must develop poll
cies which will prevent such con
ditions. A comprehensive revision
of the total tax program is highly
essential"
The Committee chairman asked
if spending should not be cut.
Nathan replied he wanted to avoid
waste, but was not sure current
spending was high enough in view
of the nations needs. He said he
did not believe taxes were current
| ly high enough TO hurt business,
citing the recent boom when taxes
were even higher.
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