Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-08-10


trying to land at the p
tiOn.-Star Staff Photo
| ECONOMIC
Continued From Page A.,
dropped IN July for the thirt
straight month.
The Labor Department re-
ported the work week averaged
40.4 hours In July or 10 minutes
per week less than in June
The work week usually decline.
between June and July by /:
minutes.
Presses for Cut
Meanwhile, an AFL-CIc
spokesman pressed for O 500
tax cut for each taxpayer thi,
year.
Research Director Stanley II
Ruttenberg made the sugges-
ton In testimony TO the Sen.
ate-House Economic Commit.
tee. He said the reduction
should be made effective now
to end December 81, 50 as moi
to interfere with tax reform
next year. The extra spending
money. he said, would for mos
taxpayers take the form Of {
$40 q week cut in Withholding
for 10 weeks. He predicted thiI
money would promptly go int
circulation. helping en- economy
which he described as on thl
threshold Of recession.
But George p. Hagedorn, re,
search director Of the Nationa
Association Of Manufacturers
said the present economic stu
alton does not call for "radica
emergency action"
Reduction BY Stages
He recommended q reduction
OF taxes by stages over o period
OF years, accompanied by re.
auctions in Government spend.
ing. The program could be
worked out. he said, within the
framework Of a balanced budg.
et."
j. A. Livingston, financial ed.
itor Of the Philadelphia Hulle.
tin. also said he would "rathe,
save a tax cut for the overhaul
Of the tax structure. next year
He said the present higt
structure enlists "the besi
minds in tax avoidance-it be.
comes more profitable to saw
on taxes than to make money
to produce goods and services
on which you have to pay
taxes"
Mr.. Livingston called fol
sharp reductions across thu
board In both personal anc
corporate rates and q big lob
OF plugging loopholes to restor.
some Of the revenue.
The Senate-House Economic
Committee scheduled anothe,
day Of hearings on the eco.
nomic outlook, taxes and
monetary policy. Today's wit.
nesses were George @. Hage,
dorm, research director Of thu
National Association Of Manu-,
facturers: Stanley H. Rutten.
berg. research director Of tn,
AN-CIO: John K. Langum
consulting economist. and 10,
seph A. Livingston, syndicates
financial columnist.
At yesterdays hearing, tws
former chairmen Of the Coun,
Gil Of Economic Advisers spill
over the state Of the economy
and prescriptions for policy.
Raymond ]. Saulnier, whit
headed the council during tn.
Eisenhower administration. Cd,
posed emergency tax cuts ans
increased Federal spending.
What the economy needs 3,
spur long-term growth, he said
Is q program Of spending re,
auctions and tax cuts for cor
porations and for individual
In high income brackets. II
said tax cuts are needed to en-
courage investment. not con
; sumption.
Leon H. Keyserling, chair
man Of the council during tn
Truman administration, Gale,
for immediate tax cuts for loy
and middle-income individual
and increases in Federal spend
ing.
Tagging purchasing powe,
not business investment, is tn
problem. Mr.. Keyserling sale
explaining his opposition to ia.
relief for business and high
income individuals.
Both witnesses agreed tina
easier money policies woul
help the economy. Mr.. Keyser
ling was much the more vehe
ment on this point.
! Earlier yesterday. a panel q
three economists said the Ma
ton needs tax cuts to stimulat
economic growth, whether Q
not q recession actually strikes
They warned that failure I
act would doom the economy t
chronic sluggishness.
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