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Show l Jw Comment j By James W. Douthat WASHINGTON Lowering federal taxes to curb existing inflationary pressures is receiving fresh attention on Capitol Hill. Among those now advocating this action is Sen. Gold-water Gold-water (R-Ariz.), a member of the Joint Economic Committee's Com-mittee's subcommittee on fiscal policy, which has just completed a study of the nation's fiscal outlook. The Investigation left the Arizona Senator convinced that "the high tax rates are actually a major source of Inflation." They are," he explains, "A limiting factor on personal and business savings, and thus result in excessive pressure on the banking system for capital which should have come from current Income." His recommendation: "We should get started on reducing re-ducing the high tax rates so as to relieve this source of Inflation." Sen. Goldwater called for a full airing by the Ways and Means Committee "of the impact im-pact of present tax rates on the accumulation of savings, the beginning be-ginning and growth of business, and the improvement of Job opportunities op-portunities or living standards." Taxpayers, he added, should have ample opportunity to present pre-sent evidence of the harmful effect ef-fect of high taxes as well as their recommendations for needed need-ed tax rate changes. The Senator agreed with the subcommittee report that Increased In-creased federal spending has contributed to current Inflationary Inflation-ary pressures and that more must be done to bring federal spending under better control. ; However, he could not go along with the views expressed in the report as to what should be done. "I disagree," he explained, "That a start on tax-rate reductions reduc-tions must await reductions in federal spending, or a budget surplus, of between three and five billion dollars." Sen. Goldwater said: "It Is time to give serious consideration considera-tion to use of the taxing power to control excessive spending. This does not suggest that I am in favor of reducing taxes at the expense of a balanced budget. "However, I am convinced that the earlier tax rates are reduced ihe greater will be the restraint exercised on federal spending by those In charge of planning subsequent budgets. "Having pressed in on the government's gov-ernment's propensity to use available revenue for spending, such tax reductions would do much to assure accomplishment of further reductions In both spending and taxes in the future." fu-ture." The Senator said the subcommittee subcom-mittee report was concerned primarily pri-marily with the shortrange outlook out-look and "does not come to specific spe-cific grips with the pressing need for major changes in ex- isting tax policy." Mr. Humphrey is the recipient of high praise for his courageous service. He is leaving a deep impression im-pression on Washington and the nation. The Treasury has Just announced the second consecutive consecu-tive balanced budget since Mr. Humphrey took office. A third is forecast in the new fiscal year. The nation has moved from a deficit of $9.4 billion in 1953 to its present position. Taxes were cut $7.4 billion during the period. per-iod. Mr. Humphrey has been a champion of reduced federal expenditures. ex-penditures. He has warned that business cannot indefinitely carry car-ry the present tax burden. He has warred on Inflation. |
