Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-11-16

1SICllCC IlCIG yCoOC1 Nuy -NoAAAS
surprisingly close to unanimity
in supporting the Presidents
plan for substantial tax cuts
early in 1868.
Although a few Of the bust
ness representatives expressed
some concern about cutting
taxes at a time of big budget
deficits, the overwhelming ma
jority of the conferees favored
tax reductions even with Fed
eral expenditures rising.
Endorsement of the tax-cut
idea by the conference was ex-
pected to give the adminiStra-
tons program a big boost. The
views expressed by the con-
ferees helped to ease the ad-
ministration's fears of political
repercussions from budget
deficits.
Oppose Link to Reforms"
The administration also may
be influenced by the confer
ence consensus opposing q
direct link between tax re-
auctions and loophole-closing
tax reforms" A large ma
jority of the conferees advised
that tax reforms should be
delayed to avoid begging down
tax cuts in controversy.
Treasury Secretary Dillon
addressing the conference yes
terday, indicated that the
administration may split the
tax package, but not in a way
that would exactly conform
with the conferences views.
He said the President ma!
propose very fast congressional
action on a first-stage tax re
, duction early next year, will
further cuts to take effect later
J Mr.. Dillon indicated that h
|, favors enactment of some ia,
reforms as an integral part o
5 each stage of the tax reduction
He said it would be a mis-
: take to delay the effectiveness
Of the revenue raising reform
as long as a year beyond tn
tax cuts. Only with reforms
broaden the tax base" h
: said, will 1t be practical to n
I duce taxes substantially.
= Alternatives Considered
n Other officials indicated ths
the idea of putting tax cuts ar
n reforms into effect gradual
r. over one or two years-instes
70 Of proposing a single package
l. is even closer to approval
= the administration than M
" Dillon implied. But several a
l. ternatives still are under col
n sideration.
g. Gradual tax action has We
lg favor in the administratiC
s. partly because this procedu
would minimize the impact {
budget deficits. 1t also is argu,
that the economy would
stimulated in a more endurii
way If all the taX-cut ANN
milton were not fired at once.
=" In addition, it is felt, Coz
- gress would act faster If Il
:; President proposed his tax pr
- gram in small, digestible dose
with the first-stage reductiC
;, retroactive to January l, 1886
- The urgency Of fast action W
~ depend on the economic on
y look in December and Januar
III The desirability of fast tt
l. cuts also is emphasized
= those who want to delay tt
reforms.
r Even if the effective dates
r. tax reductions and reforms al
n, staged over one or two year
n, Mr.. Dillon said, Congre
rs should be able to complete Il
d. whole legislative job in 1868.
J., staged tax program could
: handled in either one or tv
~. bills.
De Conference at MayflOwer
~ The conference at the Ma,
20 flower Hotel was sponsored
= the Presidents 2l-member A,
visory Committee on Labo
Management Policy, viii,
TX planned to talk over the CO.
at ferees' views at a meeting tods
ne In addition to hearil
Il speeches by Mr.. Dillon, Lab
Secretary Writ and Walter