A PRELIMINARY report based upon tax studies conducted by the author under the sponsorship of the Committee for Economic Development was published in 1944. The report, entitled Production, Jobs and Taxes, stated that the conclusions offered were tentative and incomplete; that a more comprehensive treatment of the subject with additional supporting evidence for these conclusions or some revision of the latter would be forthcoming. This book is the later report there promised.
The first study was confined mainly to federal postwar taxes and gave little attention to the larger issues of fiscal policy and of state and local taxation. The present study includes this territory although it was not possible to treat it all exhaustively. This study also includes quantitative estimates of income-tax yields under varying conditions of national income and income-tax rates and exemptions. Some estimates of the yield of the proposed tax system are also presented. A further addition is an appraisal and rating of other taxes not recommended.
Chapter VIII includes a discussion of joint returns and net income not arising from exchange. Chapter IX covers in some detail the loopholes in our present death and gift taxes. Chapter XI adds a much fuller discussion of incentive taxation proposals and of their application to unemployment compensation.
Most of the conclusions offered in the earlier work are included here without revision except in the presentation and emphasis; some, however, have been revised considerably and new conclusions have been added. Additional evidence and analysis are submitted.