Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1950-01-13
Businessmen Back
Truman S Spending
Com mittee
Ask Tax Cut
WASHINGTON GPA)

'1AOAAAAN1 o4N NLI AJ - 11A
Committee for Economic De-
velopment (CED), composed of
middle of the road businessmen,
has proposed spending and tax
program very similar to Presi-
dent Truman's, and in some re-
spectS more liberal than the
Presidents.
The CED program, made pub
lie in advance of the Presidents.
proposed spending almost as
much as President Truman on
welfare activities and defended
the economies effected by the
Chief Executive. 1t also recon-
mended plugging some of the
biggest loopholes in the tax
structure, plus a $2.25 billion
tax cut.
Based on months of study, tffg
CED proposal on taxes is sure
to draw close attention from the
Presidents advisors now shap-
ing tax recommendation to
Congress. 1t also provides strong
support for his budget recon-
mendations, which are under
bitter attack from Republicans
in Congress.
The report was approved by
the CED's Research and Policy
Committee headed by Marion B.
Folsom, of Eastman Kodak, and
including such big businessmen
as Beardsley Ruml, of Macy's;
John D. Biggers, of Libbey-
Owens Glass; S. Sloan Colt, of
Bankers Trust; Clarence Fran
els, of General Foods; Gardner
Cowles, of the Cowles Publish
ing family; Eric Johnston, form
er president of the Chamber of
Commerce, and many others
the same caliber. ~
1t was drafted by the CED's
Tax and Expenditure Subcom-
mittee headed by j. Cameron
Thomson, of Northwest BANGOR
poration; S. Bayard Colgate, of
Colgate-Palmolive Peet Co.;
Philip L. Graham, of the Wash
lngton Post, and others.
The report was based on the
CEDs theory that a budget and
tax policy should be established
which would balance the budget
with high employment, but not
in times of depression. The bud
get is proposed wouldsjust about
balance under present condi-
tlons. With an upturn in busi-
ness to lower unemployment to
IA million, which is in line
with Truman's program, thers,
would be enough of a surplus
to pay $3,000,000,0O0 on the
public debt.
The CED's budget proposed
cuts in spending of about S6.6
billion-but most of these cuts
were already provided in the
Truman budget because of i'm
proving conditions 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 re-
commended a number of re-
forms including the taxation of
future issues of state and local
securities which now provide a
tremendous refuge from taxa
ton for the rich and constitute.
one of the major loop-holes irr
the tax laws. Other tax propos-
ais would:
l. Permit businessmen to bal
ance losses in one year against
profits in another.
e. Repeal about 81 billion of
the excise or sales taxes on such
things as travel, telephones, lug
gage, movies, etc.
3. Eliminate almost half of the
so-called double taxation" of
corporate dividends by with
holding the first bracket tax on
corporate dividends, as current
tax payments are now deducted
by all employers from pay en-
velopes and crediting this a
on the corporation tax.
This, in effect, would cut cor
crate taxes from 2 to 20 per
cent, but encourage the corpora
tions to distribute more of their
profits to stockholders.
4. Help businessmen by easing
taxes on profits between $4,000
and $4,000.
On the spending side the busi-
neSsmen said, "The President,
with the assistance of the Bud
get Bureau and the cooperation
of the departments, has made
contributions to ex-
penditure control, especially in
the fields of national defense,
public works and foreign aid"
1t paid no such compliment to
Congress Whero all the tall of