Johnson Renews Tax Appeal

Press, Volume CVIII, Issue 31678, 14 May 1968, Page 12

Johnson Renews Tax Appeal

(N.Z.PA. -Reuter — Copyright)

HOT SPRINGS (Virginia).

President Johnson has renewed his appeal to~ Congress to approve his 10 per cent tax surcharge, declaring that the Federal deficit threatened the stability of the dollar at home and abroad.

Addressing the nation’s Business Council, which includes the heads of the country’s largest companies, Mr

■ Johnson said the deficit was M clearly the most dangerous ■ stimulus in the economy. M . “We can eliminate that key M danger just as soon as Con- ■ gress enacts the tax sur- ■ charge," he said. H A House of RepresentativeM Senate conference committee ■ formally approved the longM stalled tax surcharge on per- !■ sonal and corporate incomes M last Thursday, thus paving M the way for final Congres- ■ sional action. |H But it was reported it will M be at least a week before de- ■ cisive votes are taken in the M two Houses.

The President appealed to the businessmen to help get the tax Bill through Congress.

“The tax action is the most essential and most urgent step to preserve the health of our unprecedented prosperity,” he said. Mr Johnson said that to win approval of the tax Bill, he had reluctantly agreed to accept a major reduction—sUS4ooom—in spending for the fiscal year 1969, and an slB,ooom reduction in future authority for Government programmes.

He appealed to Congress to accept this figure and not a s6ooom cut as proposed by some members of the House and Senate.