Abstract

New tax policy is needed in the 1970s for economic growth, both nationally and in communities. The federal tax system needs to redress the balance between consumption and investment by measures to stimulate growth-inducing private investment and to temper consumption while rewarding saving. A positive contribution to economic growth and the stability of taxation systems at all levels would flow from federal budget surpluses during high employment that would release funds for investment in housing and business. Reduction in federal spending through eliminating outmoded programs would allow growth-inducing rate reductions. At the state and local level, regional and community growth would be enhanced by improved tax systems. Positive opportunities for improvement depend less on revenue-sharing and the new welfare plan than on the reform of both education and welfare, major expenditure areas. Highly significant reforms can be made in property taxes and much greater application can be made of user charges in seeking to stimulate community growth while reducing the congestion of urban public facilities.