The
other side
of— ——
the Fiscal coin
By John W. Hanes
The following article by Mr. Hanes appeared in the April issue of TAX
OUTLOOK. It is reprinted for your information by permission from this
publication.
Although the details are hazy, there is every in
dication that the American taxpayer this year will
get his first real break since 1947.
The individual income taxpayer has already
benefited by a 10 percent reduction and may get
further tax relief before Congress adjourns. He
is still paying some 20 percent more than he did
in 1948.
Equally important to a healthy U. S. oconomy
is the recent demise of the dangerous excess prof
its tax and the scheduled lowering of corporate
income and excise tax rates.
In addition, Congress is working on the first
complete revision of the tax code in U. S. his
tory. This overhaul is aimed at taking the tax
brakes off business and helping to create the
700,000 new jobs needed every year for young
people beginning to make their way.
Tax reduction, however, is just one side of the
fiscal coin. We cannot safely reduce taxes with
out sharply curtailing Federal expenditurues as
well. In 20 of the 25 years since 1929, the Fed
eral government has overspent its income. In
so doing, it has helped cut the purchasing power
of the dollar in half.
CUT NEEDLESS FUNCTIONS
Therefore, while we are shooting for long-
needed tax reductions, we must sharply reduce
Federal spending in an effort to balance the U. S.
budget on a lower level. Barring a major change
in the international situation, we should aim at
balancing the Federal budget at about $50 billion
a few years from now.
Such a goal involves a continuing program to
eliminate waste and inefficiency in Federal opera
tions. But that will not be enough. We must also
sharply curtail or eliminate Federal functions that
are not essential or that can be performed as well
or better by private citizens or by state and local
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