Evening star., 1955-11-16

u1ents submitted Dy some 70
hearings starting December s.
The book gives subcommittee
members and other interested
parties a chance to study In
advance the far-reaching. con-
fiicting-and often familiar
views Of the witnesses on the
effects Of Federal taxes on the
national economy.
Know what to Expect
Thus. when the three Senators
and two House members hold
their open hearings they viii
know pretty well what to expect
and have their questions ready
This method Of obtaining basic
material and making it public
considerably In advance of hear
ings has ct least one precedent
at the Capitol. A House commit
tee looking into governmental
information policies and prac.11
tices prefaced recent hearings BY
disclosing answers 10 an 80-pointI
questionnaire 1t sent to 81 agen-H
cies last August.
But the purpose and the scope
Of the tax policy subcommittee
headed by Representative Mills.
Democrat of Arkansas. differ
greatly from those Of other in
vestigating or inquiring congress
sional groups. Explaining that
the Joint Committee primarily
carries on continuous. broad
scale studies Of Federal Govern
ment economic programs as al
guide to Iegislating committees
such as the House Ways and
Means COMMITTEES and the SEM
ate finance Committee, Mr.
Mills said
"A part Of the study deals
with 3 number Of specific tax
issues. Those we believe the
most important from an eco-l
nomic standpoint include the
capital gains tax, the treatment
of natural resources. deprecia-l
tion, excuses. taxation of small
business. corporate foreign in
come, deferred compensation, In
dividuaI exemptions and deduc-I
tions. foreign income. estate and
gift taxes. and irtergovernnien-
tai relations.
FactuaL Not Political
st III our intent that the study.
be factuai and not political. 4
This subcommittee IS not. in my,
opinion. concerned with the po-l
liticaI Or the technical facets Of
taxation III this study. What we
are studying are the economic
aspects ox taxation
Despite wide differences Of
opinion and approach, the pre-
pared statements or spokesmenl
for labor, Industry. business.
consumers and others supported
q recommendation by Mr. Mills
that the strength and growth
of the national econoniy can
best be assured by q steady,
slistainable pushing ahead year,
by-year. Z
Most Of the suggestions CEN
tered on the effects actual or
anticipated of Federal tax
laws and policies on public con-
sumption OF goods or private in
vestmeEt In productive enter
prises.
Emerson r Schmidt Of the
Chamber Of Commerce of the
United States took issue, fur
example, with the way he said
the ability -to-pay theory Of the
income tax has become d fetish
with some people who have
come to test every tax by that
principle. :
1T took the Sixteenth Amend
nent to override the principles
of the Founding Fathers with
respect to taxation. = he com
planned. Apparently they be-
iieved that no one should pay
any bigger portion Of his prop
erty or income than others do
Today our progressive income
tax takes as high as 81 per cent
from the upper iYlcone-tax
bracket.
DiscOurages Work
Many would be willing To
settle for q tax system which Isl
mildly progressive as d whole
with perhaps an upper limit Of
so per cent. But as il presently
exists the progressive income
tax, with high marginal rates,
does discourage work. effort and
particularly risk taking. Ac-
tually the bigeest problem with
taxation Is not Just the structure
but the take itself
AFL and CIO spolesInen took
an opposite tack. Peter HenIe oil
the AL said his association|