Public Policy: They Are Higher Here

The most notable feature of the new tax bill that President Kennedy signed into law last week was a provision that permits corporations to deduct from their taxes 7% of their investment in new plant and equipment. This "modernization credit" was designed to encourage capital spending and thus spur the nation's lagging rate of economic growth. But in its October newsletter, Manhattan's First National City Bank forcefully argues that a far more sweeping tax reform will be required to get the U.S. economy really moving again.

U.S. economic growth is sluggish, argues the First National City, largely because the U.S....

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