Public Policy: Compromises on Taxes

After weeks of skirmishing between industry pressure groups and Government economists, the House Ways and Means Committee last week began reporting out its reworked versions of the Kennedy Administration's 1962 tax proposals. In most cases, Ways and Means gave the President only half a loaf. Some of the compromises:

> Businessmen will have to produce solider proof that expense-account spending is "directly related to the active conduct" of their business¬óbut the Administration's proposal to put fixed ceilings on expenses was scrapped.

> Corporations will be entitled to a tax credit amounting to a flat 8% (4% for public utilities) of what they...

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