Bankers Fight Reagan Tax Reform Proposals: Beneficial Chairman Alone Says Industry Would Benefit from Increase in Need for Credit Services
Naylor, Bartlett, American Banker
WASHINGTON -- Tax reformers of the House Ways and Means Committee turned their attention to the financial industry Friday, hearing from 13 representatives who generally criticized the Reagan plan to increase levies on a number of banking operations.
In a notable departure, Beneficial Corp, chairman Finn Caspersen told the panel his industry would benefit from the Reagan plan, despite higher taxes to be levied upon financial companies. The reason, he explained, is that consumers would benefit and consequently raise demand for credit services.
"Beneficial supports tax reform even though its corporate income tax payments will increase in the aggregate by $100 million over the next five years," Mr. Caspersen said.
"The problem with my collegues is that they're doing static analysis. We think this tax bill is going to change things over time," he said in an interview following the hearing. Mr. Caspersen said he came to this opinion after an extensive analysis using computer modeling.
American Bankers Associations representative John Petty, howeveR, countered that new taxes proposed for bankers would wind up hurting consumers, business borrowers, and municipal governments in whose bonds the banks are major investors.
Mr. Petty, who is also chairman and chief executive officer of Marine Midland Banks Inc. in Buffalo, defended the deduction for certain funds used to invest in tax-exempt municipal securities. …