Impending Changes in Federal Excises
Some excise taxes will be repealed, and others will be reduced, next July 1. How many of the numerous levies of this kind now collected will pass out of the federal fiscal picture entirely—and how many will be assessed at lower rates—is not yet certain. President Johnson has said only that he will ask Congress to make excise tax changes that will reduce the total yield by $1.75 billion.1 There is no doubt that Congress will comply. Pressures for reduction are so great, in fact, that the amount of revenue lost by the cuts is likely to be considerably more than the sum cited by the President.
Use of Excise Reduction as Economic Stimulant
There have been indications that the administration will ...