Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-09
Group 10 Check
On Morale Of
u. 5. Taxpayer
BY ROBERT X. A L

BY ROBERT X. WALSH
The morale" of the vast and
varied army of taxpayers in the
United States comes up for re-
view by a Senate House tax
policy subcommittee today.
Winding up the first Of two
weeks of hearings on the i'm
pact of the Federal tax structure
on the national economy. the
subcommittee planned to look
particularly into the effect of So
called special provisions in in
come tax procedure.
The subcommittee main pur-
pose in this area is to examine
the reaction Of those who pay
and the gain or loss to the Gov
ernment that collects.
Panel Scheduled
Later today the subcommittee
of the Joint Economic Committee
scheduled a panel discussion on
relative merits of income tax
exemptions or deductions as af-
fecting economic stability and
growth.
In connection with the general
problem of morale of taxpayers.
the subcommittee also sought in
formation concerning the in
1uenee of pressure groups on the
revenue laws.
Tax experts. economists and
attorneys invited to offer sug-
gestionS today included Profess
Sors Walter Blum and William L.
Cary of the University of Chicago
and Columbia University law
schools respectively. Professors
Thomas Atkeson and Harold
Groves, teachers of taxation and
economics at William and Mary
College and the University of
Wisconsin, and Randolph Paul,
Washington attorney and for
merly a Treasury official.
The scheduled afternoon
panel includes Daniel Holland
and c. Harry Kahn of the Ma
tional Bureau of Economic Re-
search and Economics Profs.
Paul Strayer OF Princeton Uni
versity, William Vickery of Co.
lumbia University, and Melvin
White of Brooklyn College.
Alternatives Studied
A five-hour session yesterday
dealt mainly with the question
whether Congress should direct
Federal tax policy primarily
toward encouragement of capital
investment or public consump-
ton.
Business and labor organiza-
ton spokesman and two profess
sorS of economics agreed in gen.
Ieral that a substantial tax cut
might be feasible next year.
Representatives Of the National
Association Of Manufacturers.
United States Chamber of Com
merce, the Committee for Eco
Inomic Development and the
iAFL-CIO said they thought a
reduction of SO to 81 billion
would be possible in 1856. so far
as could be judged from eco
nomic conditions and budget
prospects at this time.
But the business and labor
officials differed widely not only
on where tax cuts ought to be
made but also on whether they
should be aimed at easing in
lvestment or promoting con-
sumption of goods and services.
Stanley H. Gutenberg. ALL
ICIO research director. urged
that Congress center or a CON
sumer-oriented tax policy" and
provide income tax relief by in
creasing exemptions to expand
purchasing power.
John c. Davidson. director Of
MANS government finance de-
partment. declared that taxes
should not be used as "a means
of manipulating the economy or
deliberately TO influence the
course of economic events" He
recommended that Congress give
first priority to reducing income
taxes which have furnishing and
discouraging effects on economic
incentives and riSk-taking."
Emerson P. Schmidt. manager
of the economic research depart
ment of the Chamber of Com
merce. asked that Congress put
considerable emphasis" on cut
ting personal income taxes in the
middle and upper brackets, trim
the corporation income tax rate
from the present So per cent to
At per cent, and use a part OF
any surplus to reduce the ma
tional debt.