HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.tera/taxfeaturs0013 and id is 1 raw text is: Special 20th National Tax Conference Issue
MONTHLY TAX FEATURES
Colqpyuiht 1969 b' Tax Founsdation, hr., 50 Rockrlellrr Plaza, N'w York, N. ', 10020
Januaty 196Y
Vol. 13, No. I
Suggests Way
To Shrink U.S.
Payment Lag
ThI'e filmt stepl ii :rrljriig the
U rnied Stilt's' balance' [itf pay-
Lit'n ill' ft tirtl i l idsl I' ill ll)-
n.I ; fill, hiltly NaLil ' aV-
trille lilt hiisiniess fllairsi ' and
lit i'll thllgittf IhIIsLii \icie
1hv1' :li,' fiird Ito hla\m an Itl
:.It. i.lt ll flit alll ill y and
ofiii iri imig Lret ali Ui.iS.
li' (I dvc 1i -aL im iitiiit t'ff ica
alItli ii iii I'i iilcI'iiliis a rmf
Ili, Ie.' 2111ht National Tlax
V;)lrli'llrP
lier'I Ledeler, C hitm , 's -o
at( i'Itf Iit lils Ifsttig , (et-
il t'stha adjl tlnili t ills-
io\ ' I'll 'iit i aIlane (if
pa .'lllV'lls awl I'u'illy' 0hoi1glh
, ti ill hO lhlraimiietiare poli-
Ic': f I I def nli ut aIf doni -i
d11 ',ild iti', lirdo aul i ll 1nodtc
HIV te i r lcli'+ for vx its;
(2 i IV fictis i 1f ol'iriils1 P..
I rdi n i i ()' chi n gLhii i,-
thlliii lawh', ither Illllth dr-
I aliatii It' iyir tloill, alo
sihnis ttll firliis hidll iiiiiumrcir-
~LIli'i t,'hiih ie atl.' The' shl,~
Me eIR T lxt ,p-laills
li~ al' i alliolll +if ( il hen
ate, ill dInc(' ;i(: ;111( foleignl
VC .111 11 . t.
I h11 'ahiall ol, It - ninl, v d, alf i
iil it t ill 11ll, lifi'l till' and
tli lhl ill s o I ll dii Al erm -
cil I' 10111 ill xnd vnii Iilti.eii
s hi , ' iii llai ional 111L i a v'
I lh rcillil infipahi tile
'''i lio'n r(litt e dollar it an ill-
m mllili l i t' i si a rl'l.
Must Examine T x Lws
Tm l'i' ili. II, ll i d Ilalai of.
m Isl as1 1 i Vsf' . llm , ion poli
iis.,; il li d 'ti ni'li' l la t ahid
tinimlits . i. rnml'l'd, l ch
inl i, icNi aillill'd m s llihl'th
elaiiil tix. l th i- ,Il clv ill.
i.ilrl , tlllo Wlid o
il. o lloiti ill laetnl r Amiiarg
inettitt' I fill ri ixaiinti n 1 I hV
Salid, uile olel lIf nolr tax laiws,
I Is. adhh'd:
-Ifm lic questi myibv riis'red
S. . hi'er a conple, e ,i- palt
:ilil OIplcetfil Pt (if te Inll no.
5a' itiitill ttla wti' l' a 'ax ll e
ll'I s itlol Ie i 1 sedll l e
(:lllllllli alk co uinltriv's
(vailrridhd tax) s'ald not
tolel i, hellaiit io the 'allance of
'etinltilt'ilS, bt alo io tie Crotn.
Oly) a, a whole.
1. ,! Iiltili l lan iset ion
..eald (l21' however, whetlher his
lyple (ift ax wo:::d t inlidc rlloiC
icenliwe il io hleIase eIfh'hvne),
in lilition -.till llaagllielnl
Ihanl dIll r v'ni crporatle i-
till, litax.1,
Dollar Outflow Would F
If IFedenal coatrols o li thect
col';lm t fil, (rciutil n\rstillCnit
were to end in 1969, n dhollar
oaitlhniv +ir $i liilan to $t bill
lioni (,%(! 1961I would follow.
(Chalhs r. F~icro, lDirector of
(Ihc Offie of Fnliia 1Dfrect Ini-
%esliels told 'Itleldees at Tax
Folundatioen Inic.'s 20th Naio~nal
Tax Conlae this added mn-ll
flow~ u\lluld hlighl iiese re,lilts:
(1) Blorrowing wouldn't have
in be d]ole ab~road (o finlance, iln-
vestilntilf and nloney finl tle
U.S. alohably would lie. used ill-
stead: (2) since comni es have
Repi. Wilharr M. MNills, lt is gtrciled at 'F'irx Fiiuadatio's 31st
illaii lilletr ItIiitl on Chall l o :rirriiaill Ultgcr It. (:hl:luall, right,
and 'ise (:thi.nih tird, (;rilld. Mr. tihapnnl is :haintr,
.Sihll ii , thNil. 'Il., ir. (iaii. Pr'esiden ad Chief I.Ext-tliie
O v.0;M I ..I] l Chei i ( ial (:litration.
Proxmire Hits
SST Spending
All ' trd Ito F'deial Sli.ridinig
.arii its dr's rlrorrrl'rt illi the cola1-
imuicial inarket place was toged
Iry Sell. William fr oxnrire
(Wise.) in an aldi s at Tax
Foundatin Iie.'s 20th National
Tax (Conrrice.
Spreakinrg at tie Iincheon ses'
5hi of tlie all-day Uonifelnc ,
Sen. Poxliirle %,.s clitical of tle
argirrrierrt that tile transport
(SS') iloject would ease the
ii,ltln's balance n! pay'ents
pioblvis.
OiinrV tire jitIs allt luilt. lie-
clarI, Llle)' iiill l1e irll itO take
Aliri'rcals over to ir1oole to
slieind ilio lley.,t
I ,ie Sir allilo teil at I )dllait.
niilt of hirlio stiidv hid l-
ocailed lirniing nlu;ilitlau sit-
wl'rronic fly+ing 115 Ii plrliialatd
alelill exli,il~lt~ll ii a'-raliolns.
Tle ability of I cilti'i lli air.
iller to fly crs-conilneit, lie
sail, wa 'all ilnlliralit part of
lilt ellrriiii' 1a VIT.
In a ple-spiech slatelotl'tit lie
Siiallr pledirtl that elihriila-
tin if Sf ' flights evr:it lh a.
tihitial U.S. waild brig a
gleat ho d ill ST sales a id cot
signilicanit y into ally benefits
tlhe governm'ent inight irxP'ct to
rceivrc tlrorigh its participltion
in this alrrady questionalie
vevnlire.
lit! called ilfi' atlentiin of tie
aiudieice to a erint Frt'ricb
g(Cllilelltle dl'ecisiono Itlltn $12
nmillion froni that nationl's shrale
lif tie developlnlnt of the Crl-
rrrd sfpeirsllnlic airliner,.
'i\r. dl GallI well to hasc
iiown in ti' sli ria.e on the
joint fIrtish-Fiench SST i,,,j-
ct, lie said. adrlini,1, it loord
as though te Iritish and Fieie l
are iing to pst01p1one tlli e ilalies'
li'velrpnient illlvl a while.'
allow Controls' End
a lalge aliniunt rrf outstanding
shrt-teiii focrign deit repay.
able at will, it often will Ile pro.
italle to repay this debt with
irlloiey fioin tie U.S.; (3) corn-
lanies wold t l(n to inrprove
their foreign liLIiility i1oSiion
hy sendiig fnts frrnr tIt US.
for v11lklling caprital.
The 19691 pflrgian. Fir'ro said,
will lirit drllar oitlow for di-
rect invlstinr'nt it) $2.9 rillion
and it laly Ile rircessamy'' for
biusiiness to loirow anotlhcr $2-
$2Y2 billion frr fro eigrn soirces
ill 1969.
New Rules
Need Seen
I' ll lilerns aliad ii lite
Ili frf lol ii'r laxI'si will increase
;ili ried 'l' clisil attlention,
cauliot'ld Ilbrald It. Mahllgiil,
lo'isi ilial s h 'ciil a simllt ini
an addless Li Tax ioindtiton
Inc.'s 20th Nationlal 'fax Con-
ft rice.
The Il eselt titles of the (n-
oral Ag r cenfillt l1 'lalills and
Trade (CA'T), Ille ill- Lrd,
diin l t' IIo thIe realities of
lilerli liri iir.1,' (Jhiirges ill
ilidr r ix adjastil;ll ii tlrhc
Vxiaie'ilalt Ile sitatioll. 1i1
added :
What u' hltirs liave 'a'r! i'itls
which i 'lii lwlilt a close aplnoli-
iilailiiIll realtyl, with a filin
inlait onlii 'h Ixitet Ill whlch
colnilics can g.o, or iri ritles
asI 1t 1vhl'1 challgi's call lard
shouldi la' irilide, irrspel'ctive rrf
loilsic Lix: Clalgies, lie said.
Nlalngii'll 'xplahild that
(;A'['l' rilh' iaii vide that a Irir-
deir tax aulistnllait call Ill inade
a111 i'pts aad l'prl is in Ili
casi' if Ill-ill iof bearing initv le,
lir c-irlilt i txli e axi's.
'Usi if ildhect taxis has
gililw, spreadhing oivr Ini eaid
Ille laodthcs ;and ill Inlole andl
ilir collnlti cs.
At tie, Salil little, fir said,
the U.,. liaS * tI Ir' e l ctlas-
igl1' co iceiled about its coii.
lj(-Iitivc pos~ition in till tIle ac-
cirliit of its talance il paylnrnts,
a duncetln which, lie said, was
tiill a iitclied Iry a roriespondinlg
view ill ciltries exroiiliig to
contiintal liulrl'rean colntries.
'I'lt' U.S., he said, often fails
to il'cogricih il' Iiajr r Iea-islli for
tilt liavsy eliance on indirect
taxation as ilci and tIre pref-
'e i c ic f ithe aile-ad rd tax.
This is beilcaus it is tiii' m1ost ri'r-
Lain nihod of eliarilg accirale
anrd fil tax collection.
Mills: $60 Billion Spending
Increase 'Defies Reason'
IThec incramse inl Federal goverrienlt exiiveulitltcs frill $1.7, hil-
lion in liscal 1966 to :il istimated $192-195 billion I lineal 11 0
dIefies sound lasron aid judgment's ar:d is a e otlilnitllu fjI, li
tI the delicit in tll:e U.S. balanice of I;aprl nt. Rip. Willt Ii .
Mills (Ark.) told atdti'viule at Tax Folndatimi, I u.'s '1s1 alilaal
.. din er.i 1 In in adles i Is I hI.
New Type Tax is ', f e I,
tilntuilhed PNblic St-1i6c. 0',.,
Chairman of OIIll lhils\\;
ill Ii si','il II
Needed:Sm ith , ....,,,.:+,
Revisions ill two U.S. tax areas liket1ie Apollo 1pacrship '5119 l I,,
to imlprove the( nlationl's blalalnce c,ilcl i Inooli . . . lDu'pite I',l
of paynel policy' were. rec. lo, esing dhinesliv aald illlia.
oi I lenlded hby Plofessol Da~n lional lIheal pllvhle orh all
Throtop Smi1th +in adrtrsinlgl Tax ilivlase deir elt(' l(ail andI ,'old
Foundation Inc.'s 20th National j;dlgiil'i.
Tax) (,oiifiit. lie ;ail that ii lisal 1970L. i
Piofessoir ,Stiith of t il Ifir- nr,oI. nilt-ii iir ,l'
yard Graduate School oIf Ilisi- likelh to Illo it Fedvidi ili'i-il hoi
ness Adiiaiistrailml) pritosed totali by $7 billion to $11 hillilm
that taxing (f U.S. lisines in- over fiv c 1969'1 .I1115 hillim
coine dlerived fron I'oieigu level,aot l..$+2 il~
stources Ili! fixed it two-ilhdit or to .$Iql billion.
three-fouttlis tilti Irgular U.S. to
rate. lhis, Ih said. %,l, 'il tIhs .-
lif( also Ieonalmaildc'd lhat sl i)Iioa tIf l apl ale h I,-
coliidil atiloll iti' givln I ill I 'leaVe ill \ivillaill Ipeilll'. il
ist! of a U.S. vale-added tax so ii the illliiilI'. hlslillilg
that Ana-elicaln expoals anti till- IIllrh of alls' Viilla~lll Ip,-'lidll..
aaoi wvldh be ilealc I~llil decleaItC is lW'h. is, be. alh +ll.
ahl)' wilh i ;Is e I Hedn by' hlicawtd Inilhai. Iwodile
i:lli eIII lVll ill lllil l iiolll; s i Ie
baset o which ills- vahov-atlded
t apIle's, is thll' %ali ailihid to
a ploi1cl t I) eiac stlag) ' i ll( ,
dlctil : cllit is giveln fii any
allialtlt of laxI's lald at irevioi
stages of lpl.,lict oll.
,T 'axing of hasila.5% illco awi ob-
tained front direct fil i n in-
vc'stnill'l+t, acilllding I)i Plofssir
Smitlh, pltovis lille or no rev-
Votlle floinl 111ost ciilt ;lle
11111' 111111 111111pllalliis
when1 it dis plodiie siglilallt
ivtilnle. ;, is liii I)' io 1place U.S.
Iallness .a a tax disatlvarrlatte in
tie it, , asingly vigorouits ilit'r-
anala bulsiness collpletition. It
tlhi'ole scrill I leasllllC to IV-
Consider thi aspect llf lit, tax
poilicy.
Sail f .sir Sothh: We
call ill afford til lilt U.S. ex-
liitels and filign slhildialies
at a conllctitisv disaicantage,
11 aIsciiljy) it) vivo, (If oiur dialir-
1iir trade illohis anldar o ,gen-
eral adverse balance of pay.
milents.
201h Naiolmt Tax cuotrer.
ence hi New York G:ly,
Decermller 3, ceniteredl Ill
Tnx Polrle and lte IM.
rtes, or Patnents P'robu.
lent. MateriaI In Ils
Mfontiy Tax Features it
ltttuel ol (ln fI rire
tnplics. The Pro ceilings,
containig the. all-day men-
:lloni't palers an.l (li dtill-
o Is to e.vailnhle early
i 1969.
Program to Aid in Finding Overseas Markets Out
A trade deficit il conmnmercial
exportis should collie as no suir-
pr ise in view (if governnirrit poli-
cies followed since 1965, a for.
lter director of tile Prriifertt's
Cabinet Cotiriitice on Export
Expansion told Tax Foundalltion
Inc.'s 20th National Tax Con-
f!erelie.
IDanlel 1,. Gold)', now pl li-
dent of ISO World Trade Corp.,
charged the pIlsent Adlrinistra.
tLion had slown a lack of under-
standing of the balance of Pay'
ients problern in dlismantling
the trade expansion program
p|onllted Iy President Kennedy
to solve tile Illli'blll.
Goldy siIglId ilit teiplary'
niispensioii n tie i11,'l'stilent tax
credit, restrictions on foreignr in-
vestllienl aild tile ceiling On
credit for capital goods expotLq
as evidence of the lack of unler-
standing.
The narar' of thtf' ainle is:
coipetie for arif get psillon
it foreign alkrkes, said the
speaker whon ullined a 10-pihLt
proofrln to issit Anierican biti-
ness in seeking o\crseas inarkets.
le slggesied til U.S.:
Hold Budget Under $00 Billion
' The huoli+<atill (,f IhIIpIl,.
lt,t, fiiial 1970 dinii -n l .
said M ills. is Ichal : -1% . ils.-
haridllired il ll'ltinr' c nlilll is,
hold tilt budget.it ill e -I,+iwh
)car el i ll i ld V 0 $21 ililll all 1
o kel'l r'x1i'ndi ilil(' l1111 Ih-
vnatl dl bhe l'isii ill. ,lsI~ l
S peil;llimitationsa. he' uid
lirlist he latioiiall i'stalhliliid
'fakei into 1ll illlli illoio hiv li.i%
anyvI'll~e ini'c~ivm in 1.1N i,-, -
c li(! rlii d bii d e all l i l ll ,
tax lifdlllii ll, illl'lllia id [,i .
Cri~np-aillloeq, nvwit,', l -Npltldl'd
civilian Inoiiii and le-lht is
tilill'il,
Atih' lllpininig i iifi, :addlr,,
NMill pil ibili' il tihe iiili, .4
Tax io ndatllri. Ihi' sal:
Siic'e its lii nilid h!. 1\,-I till-
dlveadvq Igol, thisl FI,1unlali~ul hI,-
I ne en a pllldn'lit fi tv in fi .
clu ing atteitil i i i in I Lit i i
nilloe lelt'l'l iili llas iniills
Ca)'ll;( llowe vnciihlilt gl;o h
lilt-lit.
Thlglirho this ll lid, iti
Fl'onrnantii Ilas 'tb I'd weii it'.
stnitud pilrpose alnd olottll
'Towari Ilettec (iis orv-ili,
'hrough 0l6,tinl'n 'rndi'rsailihng'
a tillitto that il'lects a c16lili-
ion that tihe availalbilit' ii iih,
llilr ill duaLe' an1d f-ivlle
i dfl ailrlin is as itall iilll'itall,
clenient aid. ind'ed, tw lift
bloid (if dlclatic 011ii li
11eelt.
tlined
Elihninate imciions, ividll,
export finance arralig'lili'rls lii,
otlhr g ielriets. arhlI
wage-l'i h sability' adllpt l.
n,~al~ to fa\il+ expolli, i,
iin~il's ll fasIll i iuil
I0I1A00 oci'arr fheight tlispia iti,
anif tail rate dillfirriials tll r
ilirirld grofod.
Also, cliv tie aI mLii l I t' 111 ;i11.1
nisln thoin GATT in cople lil
hnleinalitnal tradhe lattiii Iii,
Iider taxes, adoilt I ;i ,
rilacih to foreigli ail1. ;till Ilos
srlildate i.istiig hlulals iln,
agencies into sonlill Iike.
Ministry of Tiadre.
I](ViewImageLocal?handle=hein.tera/taxfeaturs0013&div=1&collection=&method=preview&ext=.png&size=3)