Anti-Inflation Tax on Sales Is Proposed
An industry-supported research group yesterday suggested consideration of a type of Federal sales tax as a way to fight inflation and help finance the fighting in Vietnam.</br></br>The suggestion was offered in a paper filed with the Senate-House Economic Committee, on behalf of the Committee for Economic Development.</br></br>Supporting the proposal, the research group said inflationary pressures are building up and expressed doubts about the continued effectiveness of voluntary guidelines on wages and prices.</br></br>T. O. Yntema submitted the-statement as chairman of the i groupÛªs research and policy committee. Yntema holds a doctorate in economics, and is a vice president of Ford Motor Co.</br></br>He recalled that CED has previously suggested ÛÏa broad-based, low-rate general business receipts tax as a partial substitute for the corporate income tax.Û ÛÏIn present circumstances such a lax could be used, within limits, in place of reimposition of discriminatory excise taxes, an increase in the corporate income tax, or an increase in the personal income tax," he wrote. "As the needs for revenue subsided, this tax could be retained as a substitute for part of the cor-iporale income tax.Û