Show Trouble With j j Tax Structure By THOMAS B. CURTIS Missouri The real damage that is being caused to our and to our business is due to our high tax rate in order to accomplish tax our Federal expenditures must be brought down to a point of manageable Spending has to be controlled so when we talk in terms of tax we are not talking about financing a tax cut by a new bond Such a bond issue would mean nothing more than deferred tax If taxes are cut without cutting we run into debt management and I am very concerned over the impact of additional problems in the field of debt management on our bal-lance-of-payments It is being said that deficit financing actually will stimulate the and that Federal spending by the political with its alleged better understanding of what and how money should be will stimulate the Perhaps this concept of deficits may have some possible validity in an economy based on the laws of But our society is moving into an economy where not is the The argument is made if we create a bigger deficit by cutting we will not let loose the forces of inflation because we have men who are It is argued that you do not create inflation by putting more purchasing power You may Look at operating at 60 percent of What would happen if we increased consumer purchasing power at a time when we are in many a record-breaking For two years in a automobiles and two of the great users of are at these high I suggest that this idle steel plant capacity is not in and would not be in demand even with higher consumer purchasing because it Is a capacity that is With a 60 percent plant capacity utilization last steel spent well over a billion dollars building more This billion dollars is to produce a very thin steel sheet to compete with plastics and other such as that are moving into markets that steel once These are the problems of rapid economic not of a sick You don't have obsolete- equipment and obsolete skills in a tired Reducing the corporate tax rate t from 52 percent to a rate of 49 or a 47 percent 1 actually would produce more in my because we are now beyond the point of diminishing returns in the high j that kind of reform can at any and should j come at the earliest possible 1 But it follows a completely different economic philosophy from that which says that this tax reduction is going to release purchasing power to the private or investment power if you want to use the money for If the requirement is that to J cut taxes you have to compensate j revenue-wise by closing what are j classed it will take many months to develop adequate tax rate if developed at What is one man's loophole is i another man's |