| Show 9 New What Management is eager to see what comes next month when the bumper crop of freshman lawmakers Lake their in the Senate and the MOST OF the newcomers are committed to revamping federal tax establishing a national health insurance and stepping up antitrust Legislation in these areas will create problems for placing heavy upward pressure on BUT THE liberal Democrats coming into greater power on Capitol Hill are not all anti-business per Many are quite realistic and convinced that if their party Is to capture the White House in it must help small next year's tax code changes will favor the Democrats will try to win points by pushing a proposal making the basic 22 percent tax on the first of annual corporate earnings apply to the first or perhaps even A surtax of 26 percent on earnings above this cutoff would SUCH A tax change would be welcomed by although any benefits derived could be whittled down or even wiped out by new spending programs and other legislation whose net effect would be to hike business costs are climbing at a dizzying pace and to the consumer are meeting increasingly stiff resistance as business flags and unemployment HALF OF the nation's jobs and 40 percent of the Gross National Product are produced by individual and small How these fare over the next two years will have an important bearing on the 1976 of which will depend on cost factors shaped by legislation that is yet to ECONOMISTS are sharply divided over how best to deal with a recession accompanied by President Ford and his advisers feel that flat business for the next six months would help more than it would hurt In the long They are resisting Democratic proposals to prime the economy with expensive j BUT NEITHER Republicans nor Democrats are fully the American Part of the blame for inflation lies with public officials In their desire to maintain their they tend to give assent to pleas covering a multitude of worthy extending government services far in excess of what we can EVEN WITH 12 percent they still seek to Fiscal and monetary restraint is alien to the political he succumbs too easily to the pressures of conflicting The next six months will surely be rough for but in the end it could emerge from the shadows or recession much stronger than ONE BRIGHT spot Is continued wide skepticism regarding wage-price Right even labor seems convinced that another round of these would push the economy deeper i Business and the nation need a boost in productivity to end shortages and create That boost would only be further deferred if we f were to resort once again to f mandatory THE RESEARCH Department of Babson's Reports and the staff of Babson's Washington Forecast Letter feel that President strongly backed by public can head off the attempt that will surely be made in Congress to relm- r pose While classic liberal-conservative divisions in national politics arc becoming steadily more this not necessarily mean that conservative and moderate power in Washington is on the verge of being totally THE OLD coalition of Southern Democrats and conservative Republicans may seem to be washed up owing to bin the nucleus is there and could be rallied once again by moderates of both |
