Tax Reduction and the Business Slump
Failure of the economy to show clear signs of spontaneous resurgence from the current business recession has provoked widespread demands for reduction of federal taxes. Leading business and labor organizations, private associations engaged in economic research, and prominent economists and other individuals have called for a tax cut to arrest a decline which, unless halted, may feed on itself and throw the country into deep depression. Specific proposals differ in detail but have in common the aim of stimulating revival of commerce and industry by expanding consumer and business spending.
A few public figures have spoken out flatly against resorting to tax action which would inevitably push the federal government into a new splurge of deficit financing. Bernard M. Baruch, ...