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Show -i . vof the Kemp-Roth j in Longress would productivity, i -tni and the gross . product by dras- cutting the rate at i -aividuals and cor-r cor-r j; taxed, charges a ' uial scientist. It 4 spare the govern-( govern-( -- consequences of a i . ersion of Proposi- KRISTOL, New . :rsiiy professor Jior io the "Wall - .' 'arnal," points out 1 p-' - named for its R p. Jack Kemp i j and Sen. William U.Del.) - "would f I' tderal income-tax I J i -3wit 3D percent over f -lear period and I : pruof the tax law by 111 i - lax rates to allow im- inflation." - n the April issue of J t, Kristol says V lax cuts fail to ' t problem of infla- 1 'itha progressive : ax. Every time a ' - raised, or a spouse 1 - Tk to help cope with 1 " itiere is movement " iher lax bracket, K :'er marginal tax I 1 k aplains. 1 'U0NDER, then, 'ea higher income, ndard of living ' 'iie same or even ''g taxpayers - both ( j s,f and individual -I ( ::el their own in- . oaid benefit the ' and the government "onomist Norman Ture estimates that in the first year alone Kemp-Roth would create 2.1 million new jobs; private investment would increase by $90 billion, and the gross national product would increase $175 billion. "AS A RESULT," Kristol points out, "federal tax receipts would fall much less than the drastic cuts in rates might suggest." Historically, in fact, tax receipts have increased within two years of a tax cut. In contrast, when the tax on capital gains was increased in 1969, government govern-ment revenues from this tax declined steadily. Comments Rep. Kemp, "If you tax something you get less of it. If you subsidize something, you get more of it. In America, we tax work, growth, investment, employment, savings and productivity while subsidizing subsidiz-ing nonwork, consumption, welfare and debts." LEGISLATION to limit taxes andor spending is pending in almost every state. Taxpayers have also voiced their concern to their national legislators. Tax cuts of some description are certainly in the wind. The issue, as Kristol sees it, "is whether to cut taxes minimally and belatedly, as a reaction to popular resentment, resent-ment, or whether to cut tax rates massively now to stimulate the kind of growth that will curb inflation, and increase ' government revenues to balance government govern-ment expenditures." |