OCR Text |
Show ECCLES ABVISES FIRM TAX HIKES Increase Suggested to Meet Arms Cost ST. LOUIS, Nov. 10 (UP) Msr-riner Msr-riner S. Eccles, chairman of the federal reserve board, recommended recommend-ed last night that taxes of large corporations and individuals in the higher Income brackets be Increased In-creased to defray the costs of armaments arm-aments and balance the budget. "It is time." he said, "to take certain steps that will Increase domestic do-mestic consumption, diminish the pressure of idle funds on Investment Invest-ment markets, and to begin to close the gsp between government income and outgo." He spoke at a banquet observance observ-ance of the twenty-fifth anniversary anniver-sary of the opening of the federal reserve bank at St. Louis. He said the cost of the government's govern-ment's proposed armament expansion expan-sion program should be defrayed, not by diverting funds from work relief and agricultural benefits, but by additional taxation on war profits and income groups now relatively untaxed, and by reducing reduc-ing exemptions on lower Income brackets now escaping untaxed. |