Arthur Burns Hits Tax Cut Now: Implies Criticism of Reagan Proposal
Former Federal Reserve Board Chairman Arthur F. Burns said yesterday that ÛÏat the present time, any tax (cut) legislation is prematureÛªÛªÛÓby implication, though not director, criticizing Ronald ReaganÛªs recent proposal for a one-year antirecession tax cut.</br></br>In a conference with & group of reporters, Burns said that to cut taxes now ÛÏwould be attacking a short-term economic problem and not the longer-run problem which is far more serious. ... In an election season, tax legislation ought not to be written. We can wait.ÛªÛª</br></br>Burns also called attention to a ÛÏdifference in prioritiesÛªÛª between ReaganÛªs tax proposal and one offered by a recently organized Committee to Fight Inflation, which Burns heads.</br></br>The Reagan proposal, including a 10 percent personal income tax cut across the board, would give about 90 percent of a $21 billion reduction in fiscal 1981 to individuals and only 10 percent to Business.</br></br>The Burns committee gives greater emphasis to reducing business taxes, gradually in the next two years and at an accelerated pace in the three following years. It does not include any per-