Strong Sentiment

During last week's stormy House debate on wartime economic controls (see NATIONAL AFFAIRS), Ohio Democrat Walter B. Huber uncorked a surprise. He jumped to his feet and offered an amendment calling for a corporate excess profits tax. Without bothering to ask for details, the House promptly gave its approval by a standing vote. When House Republicans later found that Huber's amendment would restore the sky-high 80% maximum tax (and the same basis for computing it) as in World War II, they forced another vote, and the amendment was tossed out.

There was no doubt that sentiment for an excess profits tax was strong among businessmen, as well as Congressmen. Last week the U.S. Chamber of Commerce reversed its long stand against such a tax, said that one should be considered by Congress in 1951, and suggested that an immediate study be made to draw up a fair and workable law. At the same time, the Chamber insisted, nonessential federal spending should be heavily cut.

In its Monthly Letter, the National City Bank blueprinted the cuts. Said the Letter: cutting back on nonessential spending "is what the citizen is expected to do in his budget when his taxes are increased. He is entitled to wonder why, if he is to forego some of his spending plans, the Government administrator cannot do the same. He is entitled to expect a shake-out in nonessentials--and everyone knows they are there--before resort is had to tax increases." The Letter said that big cuts could be made in farm price supports, federal mortgages on housing, public works, EGA spending, and Fair Deal programs for health, education, etc. Total savings: $5 billion.

This file is automatically generated by a robot program, so reader's discretion is required.