Milford chronicle., 1963-08-02

CGNtlVe WILL De aQOeu IOT Lne
greater private investment need
ed to lift our economy to a high
er level. More investment will
give us the faster rate of growth
we need through the expansion
of industry, establishment Of new
businesses, and consequently
greater employment opportun-
tiles which attend such growth. /"
There is ample and recent
precedent, Mr.. Mortimer said,
for being confident that ffboth
a higher economic level and
greater federal tax revenues can
indeed be achieved fairly soon
after lowering tax rates.
ffWhen taxes were cut effec-
tive January /, 1854 the ex-
cess profits tax was rescinded
and individual rates were re-
duced a $7.4 billion loss In
revenues was foreseen for the
first year. But the economic
squirt that followed these tax
cuts was greater than estimated,
and federal revenues were only
$4.5 billion less In the first
fiscal year after the tax cut than
in the fiscal year preceding the
reduction. BY fiscal 1856 the
second fiscal year after the cut
federal revenues had bounced UP
to a new a1ltime peak.
ffh the private sector of the
economy, such a capital spend
ing boom took place that in 1857
business outlays for new plant
and equipment were SO billion
more than In 1854. Between 1854
and 1857, our Gross National
Produce rose $50 billion.
"And here, In the light OF
today's most pressing national
need more Jobs is what
must be considered the clincher
Of the effect of the 1854 tax
rates cuts: Our total civilian en-
ployment rose more than four
million persons in the three
years following the tax cuts.
"There is every reason to be-
lieve that when government taxes
take a lower share of what each
individual and each business
earns, a htgher-than ever econ
omy can be achieved for our
country. To the individual, lower
personal taxes mean more mon
ey to spend. To abusiness, lower
corpora ate taxes mean more pro-
fits thus more money left for
new investment and expansion,
for research which will create
more products and services. This
in turn, adds UP to more volume
of sales, more production o.
more goods and thus more
jobs"
Reducing government expen-
dttures and "living within oul
means are as necessary as low
er tax rates Ii we are to bui1C
a strong economy" Mr.. Morti-
mer said. "Sound fiscal policy
cannot be attained II spending Is
not brought under better control
Nor can we continue Indefinitely
the patch and paste method which
seems to have characterized sc
much of our federal income tas
legislation over the years. Fo1
the long pull, basic overhaul.
ing of our federal tax structur,
proper tax reform is must >
However, he said sit Is un.
realistic to expect that the con.
troversial tax reforms and tn,
very important matter OF re.
ducing federal expenditures cal
be legislated simultaneously witt
the tax cut we need right ava,
In order to stimulate the econom.
very soon. Il we don't cut take:
now, we will lose the golden op.
portunity to bring about health.
change In the economic climate. >
C. w. (Tex) Cook, Genera
Foods president, reporting on tn,
fiscal year which ended Marcel
81, told stockholders 1t was sfth,
best GF has ever had" and tina
fiscal 1964's first quarter, whicl
ended June 80, sis off to a prom.
Using start" with both net sale:
and net earnings about five pei
cent higher than last years. frs
quarter.
Discussing the foodprocessini
industry, Mr.. Cook credited con.
venience foods with contributing
sub stantial1y to Americas higl
standard Of living, and said tina
the fulfillment Of consumers ris.
ing expectations of ever-bettel
convenience foods is "an indis.
pensable economic and socia
force for good In the United
States."
The fact that homemakers tax,
convenience foods for grated, h,
said, fsis nattering testimonial
to General Foods and to the foot
industry's accomplishments. Blu
past accomplishments i'm.
prove ents In convenience
taste, and nutrition which MAKE
foods available at competitiv,
i prices that are affordable pro
vide no guarantees for the future
Il fsWe must continually re-wil
consumer confidence. In fact
every day is election day for u
] In the supsrmarket. For wher
Mrs. Homemaker tries new
] Iproduct, more often than not sh,
| is casting a vote of confidenc,