(3 of 3)
Indeed, Congress is likely to modify the Administration's tax package along just such lines. Wilbur Mills, chairman of the House Ways and Means Committee, believes that the investment credit is the most powerful economic stimulant devised in a generation; he expects results from it within six months of enactment. "We know what it will do," he says. Mills also wants to increase tax reduction for consumers. To get the money for this, he will probably cut back on the depreciation allowance and push for a straight 7% tax credit instead of the 10%-5% formula. Obviously the Administration will have to accept some modifications in its package. In matters economic, Wilbur Mills is a tough man to beat.
* The 7% investment credit was repealed by Congress in 1969 in an effort to cool inflation fired by the Viet Nam War.