TAX REDUCTION THOUGHT UNWISE

Rotorua Morning Post, Issue 5298, 10 January 1947, Page 5

TAX REDUCTION THOUGHT UNWISE

(Press Assn.—

U.S. TARIFF REVIEW STATE DEPARTMENTS WELL OVERSTAFFED

■Rec. 9.80 -p.m .)

WASHINGTON, Jan. 9. Experts and lay opinion was af-reed that Government revenm ■ should exceed expenditures v hile employment was high and In'-ome large, said President r' uma n in his budget message L- Cohgress. In the present uiomic situation it would be 'i-mund to reduee taxes, uithoiigh the great tax burden >uld be redueed as soon as possible. T,"armers' ineomes should not be ; mitted to fall below those earned 5 comparahle productive groups. . 7' is should be aeeomplished without use of subsidies as far as possible. ('• vernment. policy should be based ea plenty, not scareity. Agricultural leoduction rose .10 per cent during i]-e war and could be substantially iscreased. Increase in Social Seeurity i'resident Truman recommended diastic ovcrhaul of the social seeurity ' • s to increase the amouht and d;i"ation of henefits, to extend bene•i's to people not now covered, and >. include health insurance. He also pioposed that the social seeurity :Y-tem he financed in part from '!"rr*as'.iry funds instead of entireiy social seeurity taxes. Pointing i.-ut that the high volume "f exports in 1946 played an im- ■' utaut role in the maintenance of I'loduction and employment, Presidi nt Truman said that if wellb' lanced. nrosperity were lo be naintained over a long period United v'4ates foreign trade must he estab:"shed on a more permancnt hasis. she could sell to other countries : "y if willing to buy from them or ?st funds ahroad. Nevertheless, indiscriminate reduction of tariff barriers must nat bo contemplated. "For years we ',-i'nnot expect to buy as much from abroad as others buy from uf." be said. "We shall find it •nofitable to invest part of our rrvings in developing the world's productive resources through loans ancl investment capital abroad." The willingness of many countries : i enter the International Trade Organisation would depend largely i n the United States attitude to the t iproeal tariff negotiations sched•I"d for this vear. Tn return for her ii tariff concessions the United '■'tutu* could hope to secure not only ; 'icfions on foreign tariff s and '"•-vriininatii.ns Tui t the eliminalion a mars i f restrictions sucli as !-;ii] hapori quotas, Problems to be Studied President Truman said he had firccted his rouncil of economic ad- ■ -ers to vtudy such devices as a ".11 int.egrated programme oi' eniuleyment, stabilisation, improved loccsses whereliy workcrs would ibi.l jo-hs and employers would find v.o'-ker:', imnrovements in the tax : .T ucture. wise management of the Otiblie ilel-t and a flexihle credit "'•icy. The I'n sident's hudgel message is " erelv a statement of policy. Tlie ari ua] budget. ostimatcs are expected •;>*i Fridav. The Repuhlican chairman of the ' Ouse Appropriiitions'Couiniittee, Mr Tii'>er, said his budget would not exceed 29,140,000,000 dollars, which was much lower than the figure ihi'sident Truman expected to preent. Mr. Taher added that the Reou blicans wmild reduce expenditure ' the point where the budget was balanced and payment was made on the national debt. Also room would be made for tox reduction. He declared that eyery Government department had twice as many employees as it fceeded.