Show ECONOMIC highlights happenings happening that affect the future of every national and international problems inseparable from local welfare every congress enacts tax laws but the last congress did something which Is unprecedented in modern times it passed a law overhauling the entire federal tax structure the first such overhaul in 75 years writing in the saturday evening post of october 2 secretary ot of the treasury humphery II describes the purpose r ose of the new law as being these to remove many hardships on individuals to reduce restraints on the kind ot of enterprise which create new business and new jobs to close loopholes and so tar far as possible to make the tax laws more simple clear and certain 11 I 1 then mr humphery observes that the benefits of the law are of two kinds direct and indirect we will enjoy the direct ones next april when income tax returns return s are due again just about everyone will be helped from working mothers who will be allowed deductions for babysitter charges to farmers who want to buy new equipment in ia this connection tion the secretary adds that the government Is eager to acquaint taxpayers with their rights under the new law and urges that anyone who has questions go to the ji nearest earest internal revenue office tor for help with his returns the indirect benefits for the most part will not be felt BO quickly but in mr humpherys Humph erya view they are by tar far the most important ile he writes isy by removing restraints this new law will relea energies throughout our economic system working quietly but steadily to create new enterprises more and bettor better jobs new productive efficiencies cien cies larger payrolls and a healthily rising standard of living for all the people of america that sentence Is worth a second reading it clearly explains the philosophy of the fiscal experts who wrote the page law of the congressional majority which voted tor for it and of the pre president aident who signed it this philosophy Is rooted in the idea that the way to achieve tho the greatest good for or the greatest number Is to encourage initiative and enterprise both among individuals and among businesses and industries of all sizes and kinds A practical example of 0 this kind 0 of thinking Is found in the provision ot of the law which partially eases double taxation of dividend income mr air humphery points out that in manufacturing industry it costs cost an average of nearly to buy the plant and equipment needed to provide just one job thus in his words the double taxation of dividend income hai hag made it increasingly difficult to attract risk capital to create these lobs jobs so industrial expansion la in lato late years has been mainly paid for through borrowings instead of sales of stock that thai in his view la is potentially dangerous tor for a business with a heavy load of debt moves timidly instead of boldly hence the dividend income provision was written into the bill finally the secretary ends with t these h ese bright words word our ta tar x revision of 1954 represents a mighty effort to bring our tax laws up to the needs of a modern america a giant stride forward toward economical comical health growth and sanity |