Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-03-11
Job|ess Reach So Million,
Major Tax Slash Studied
Meony Reps
Tordy Plans
On Recovery

AFL-CIO President George
Meany scored both the Eisen-
hover administration and the
Democratic controlled Congress
today as he proposed a reduc-
ton in individual income taxes
as an immediate first step in
combating the business recess
sion.
In assessing responsibility
for what he called the eco
ncmic crisis" confronting the
country, Mr.. Meany accused
President Eisenhower and his
administration of "Shortsight-
edness" and added:
1.-THE administration is to
blame because it has done too
little until it's almost too late,
because it has sought to hide
the truth behind a face Of po-
litical cheerfulneSs."
Congress "Shares Blame"
AS for Congress, Mr.. Meany
said:
But the people on Capitol
Hill must share the blame, too.
There is no excuse for the delay
in Congress. The Congress need
not have waited for admins
tration leadership. 1t could
it should-have moved before
this"
Mr.. Meany set forth his
views in the keynote address
at the opening of a three-day
AFL-CIO economic and legis-
lative conference at the Shera-
ton-Park Hotel. The confer
ence. with the theme of Put
America Back to Work" &C
tually was a pressure meeting
with about 1000 delegates from
almost every congressional dis
trict in the country set to call
on or consult with their Rep
resentative in Congress to fur
ther the program outlined by
Mr.. Meany declared that in
addition to the more than S
million officially listed by the
Government as unemployed in
February. more than 3 million
persons were working part time.
Urges Bigger Tax Exemption
The AFL-CIO preside n t
called for an increase in basic
individual income tax exemp-
tons. long a goal of organized
labor, from 5000 to $500 and
said: ut may even be neces-
sary to go higher than $780,"
IF this takes a deficit" he
added, "let there be a deficit"
Mr.. Meany called his tax
proposal probably the most
i'm portant single weapon
through which the Federal
Government can fight recess
sion." He said it would "imme-
diately pump new purchasing
power into the economy
He emphasized that there
was nothing sacred about the
5000 exemption figure. 1t was
established in 1913. Mr.. Meany
pointed out, as a rock-bottom
income per individual. Since
that time, he added, the cost of
living has increase 80
markedly :. that it takes more
than $500 a year to buy what
$500 bought in 1913"
Mr.. Meany made no estimate
Of what his proposal would
total, but such a reduction as
he has proposed has been esti-
mated at SO to 81 billion.
Secretary of Labor Mitchell,
who addressed the conference,
disclosed that the eight men,
Der Executive Committee of the
AFL-CIO will confer Thursday
morning with President EiSen-
hover. He said the President
is looking forward to seeing the
labor leaders then.
Raps Tax Program
Stanley H. Ruttenberg, direc-
tor Of research of the fedora
ton, asserted that one of the
major causes of the present
recession can be traced to the
1953-54 tax program of the
Eisenhower administration.
The tax cut then was not
designed to stimulate consumer
purchasing power or to increase
consumer incomes, he declared.
Instead, he said. it was de-
signed to stimulate business to
invest in new plants and equip
ment to expand its capacity.
"If America is to be put back
to work and if existing plant
capacities are to be fully util-
led" he declared. "a tax cut
designed to improve the levels
of consumer purchasing power
and consumer incomes must be
enacted.
I'm addition, improved levels
Of unemployment compensation
benefits through adoption of
Federal standards. as we'll as a
public works program including
housing, schools. roads and hos
pitfalls are essential"
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