Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-09-15
U. 5. Ponders
Tax Rebates as
ExpOrtsSpur

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may propose tax rebates to
stimulate United States exports,
Comm cree Undersecretary
Franklin d. Roosevelt, jr., indi-
Gated yesterday.
Mr.. Roosevelt said the idea
Of tax incentives will be an i'm
portant item ON the agenda of
this weeks White House Con-
ference on Export Expansion.
President Kennedy will ad-
dress the opening session Of the
two-day conference on Tuesday
at the Mayflower Hotel. More
than 200 businessmen active in
exports are expected to attend
the conference, organized by an
inter-agency committee headed
by Mr.. Roosevelt.
Commerce Department stud
les indicate that tax rebates
abroad give European business
men q substantial advantage
over their American competi-
tors, Mr.. Roosevelt said in an
interview.
He explained that the tax
rebates allow European bust
nesSmen to cut prices on goods
for export to the United States
and to other countries where
Europeans and Americans
compete for sales.
To Ask Recommendations
Business leaders at the con-
ference will be asked for advice
on the value Of similar tax in
centives in increasing Ameri-
can exports, Mr.. Roosevelt said.
In a addition, he said, the
businessmen are expected to
make recommendations on the
practically Of such tax incen-
tives.
Mr.. Roosevelt noted that
rules of the General Agreement
on Tariffs and Trade (GATT)
prohibit rebates on corporation
income taxes for the purpose Of
stimulating exports.
European export incentives
take the form Of rebates on an
other kind Of business tax, in
direct levies on turnover. Re-
bates on turnover taxes to sti-
mulate exports are considered
legal under GAIT rules.
Rules Change Unlikely
One solution to the problem
might be for the United States
to seek changes in the GAIT
rules to allow rebates Of cor
poration income taxes, Mr..
Roosevelt said.
But. he added, the amend
ment process might be too slow
to help solve the immediate
problem Of large deficits in the
United States balance Of pay
mentS. The drive to increase
exports is inspired mainly by
the urgent need to reduce pay
ments deficits.
Mr.. Roosevelt said another
difficulty with the tax incen-
tive idea Is the risk that other
countries would retaltate
against the United States.
Treasury officials have been
dubious about tax incentives
for exporters, because Of ad-
ministrative difficulties and
potential losses of Federal rev.
enues.
Export Study Wide
Mr.. Roosevelt said revenue
losses could be eliminated II
the Government grated tax re-
bates only for increases in ex-
ports above 1868 levels.
Tax incentives will be consid-
cred at this weeks conference
by q committee headed by VIII
liam E. Knox, board chairman
Of Westinghouse International
The conferences 10 other
committees will consider such
subjects as labor's role In ex-
port expansion. trade promo
ton, foreign investment, export
financing, marketing research,
small business, publicity, trade
negotiations and antitrust pol
icy.
Commerce Secretary Hodges
will be chairman Of the confer
ence. Other scheduled speakers
are Secretary Of State Rusk
Treasury Secretary Dillon
Agriculture Secretary Freeman
Labor Secretary Wirtz. GAIT
negotiator Christian A. HerteI
and Chairman Harris, Demo-
crat Of Arkansas, of the House
Commerce Committee.
Rate Changes Urged
On the question Of antitrust
policy, Mr.. Roosevelt said the
Government should consider
whether to liberalize rules fol
associations Of companies In
the export business.
He said existing law allows
companies to ban6 together To
reduce overhead costs Of export
sales and distribution. but the
law is interpreted to apply only
to industries with many small
companies.
The question, he said. Is
whether such associations
should be allowed also In such
industries as steel. aluminium
and automobiles, which are
dominated by relatively big
companies.
In O related area, Mr.. Roose-
welt said the United States Is
pressing for q djustme emit Of
ooaan fYaioht rates that dis.