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Show By James W. Douthat WASHINGTON Recent events in Washington have strengthened pressure for tax relief. Convincing evidence has been supplied to Congress by experts in finance and In business that the confiscatory federal income tax rates and high corporate taxes - are a definite threat to economic growth. Further, it is pointed out, a threat to growth is a threat to Jobs to the whole financial structure of the nation. Washington is engulfed in discussion dis-cussion and argument over inflation, in-flation, and its blighting effects. But economists have told Con. gress that one of the most Inflationary Infla-tionary forces in the economy is the system of high and discriminatory discrim-inatory rates of income tax. These rates choke off creation of new capital at its source, cause excessive reliance for economic expansion on bank credit, and distort or prevent natural patterns pat-terns of economic growth. VEHICLE IS AVAILABLE A springboard for tax reduction Is a bill by Rep. Sadlak (R-Conn.), (R-Conn.), which would reduce, over a period of five years, both personal per-sonal and corporate taxes in a series of annual reductions to a top of 42. Mr. Sadlak points out that his proposed federal tax reduction could be achieved out of the nation's na-tion's economic growth, if government gov-ernment spending Is brought under un-der control. The Sadlak bill is before the House Ways and Means Commit, tee, which has power to call hearings and report on the measure. mea-sure. Furthermore, Congress admittedly admit-tedly has ample time to hold hearings and to act on a tax reduction re-duction bill in the present session. ses-sion. THE ECONOMY DRIVE Just now Congress is working had to complete action on the approp-1 rlation bills, which made up the $2.8 billion budget I Economy leaders are confident that they will be able to boast of success that real savings will be made for the taxpayers. As congress entered the final phase of consideration of bills,' the House has cut over $4 billion from the budget. The Senate had cut more than the House in the first eight bills considered. Other steps were being taken to hold down government expenditures. expen-ditures. The Defense Department ordered or-dered delay in obligating over a half billion proposed expend!, tures in June; the department also was considering "stretchouts" "stretch-outs" of expenditures to hold down next year's costs. MARGIN FOR TAX CUT I Strong ndvoratps of economy. I such as Senator Byrd of Virgin-' Virgin-' la. declared that a tax cut could be effected without impairing the Treasury, providing the Administration Ad-ministration cuts down spending in the next fiscal year. It appeared that there would be a modest budget surplus in the fiscal year ending June 30. Secretary of the Treasury Humphrey voiced a hope that the Treasury can operate for the first time since 1954 without exceed-Ing exceed-Ing the permanent debt limit of j $275 hillion. j It Is true that both Secretary Humphrey and Director of the Eudget Brundage oppose Immediate Im-mediate tax cuts although Mr. Humphrey says it may be possible pos-sible to make a cut In the fiscal year beginning June 1. Those urging Congresslon ac. tlon now point out that any tax cut bill would be ef'ective in the next fiscal year; action now might anticipate Mr. Humphrey's Humph-rey's hopes by only a few months. |