The chairman of the House Ways and Means Committee again urged the Carter administration yesterday to scrap most of its earlier tax revision proposals in favor of a sharply pared-back package built primarily on tax cuts.
Rep. Al Ullman (D-Ore.) told a tax group here the administration should concentrate on reducing taxes for business and investor and not seek any massive overhaul of the tax system. He said any broad-scale package was unlikely to pass the Congress.
Ullman made his remarks at a conference on tax policy sponsored by the National Journal, a weekly publication. Rep. Barber B. Conable (R-N.Y.), minority leader of the Ways and Means panel, was host.
At the same session, Charles L. Schultze, chairman of the President's Council of Economic Advisers, reiterate the administration's intention of shaping its tax package to spur more business investment. He said taxes must be cut to offset an effective increase resulting from inflation.
Neither Ullman's remarks nor Schultze's represented any departure from previous statements. The Ways and Means chairman has called for a breakup of the administration's tax revision package. He also urged reducing the so-called "double taxation" of profits and dividends.
Treasury Secretary W. Michael Blumenthal indicated last week that the administration is considering taking Ullman's advice on tax proposals.Blumenthal said the package unveiled in January would be trimmed from either proposals and would deal mainly with tax reductions.
The Treasury now is in the process of revamping the earlier package and is expected to submit a revised proposal soon to the President for a final decision. However, there has been no indication of precisely how much the tax plan is to be trimmed.
The administration has run into opposition from Congress and from special interest groups since the contents of its tax revision package first became public in early September. Carter himself has conceded that "tax reform" has proved to be more complicated than he thought.
Ullamn's go-slow views on tax revision were shared by his predecessor, former Rep. Wilbur D. mills (D-Ark.), who now practices tax law in Washington. Mills told the group he'd like to see the entire package dropped.
Along with Ullman, Schultze and Mills, the conference heard from Herbert Stein, former chairman of the Council of Economic Advisers in the Nixon administration. Stein said he, too, favored a limited approach to tax revision.