Date 5 July 1943
Author unknown
Title Anti-inflationary Program Discussed by Secretary Morgenthau
Description Meeting summary
Location Box 34; Inflation, Depression and Recovery; Records of the Office of Tax Analysis/Division of Tax Research; General Records of the Department of the Treasury, Record Group 56; National Archives, College Park, MD.
 
Anti-Inflationary Program Discussed by Secretary Morgenthau, July 5, 1943

1. TAX INCREASES

Taxes would be increased, including individual income taxes, corporation income and profits taxes, excises taxes, as well as other taxes now in use. As much of an increase as possible in tax revenue would be secured.

2. "VICTORY" REFUNDABLE TAX

A special wartime tax would be imposed, probably at a flat rate, on income, with deductions for debt repayment and savings (at least of certain types), and with relief from all or part of the tax for those persons in the lower income brackets who have not had increases in income. The tax would be treated in the first instance as a dismissal savings fund. Upon dismissal from his job, an employee would receive, while unemployed, a periodic allotment of his accumulated tax payment. Any amount not thus paid out to him within a specified time (perhaps two years) after the end of hostilities would be payable to him upon request.

3. GOVERNMENT FOOD PURCHASE

In order to police rationing and price ceilings and to eliminate black markets, as well as to provide production incentives and facilitate the subsidization of food prices for low income groups, the Government would buy up all of certain farm products, such as livestock, and sell to licensed processors.

4. EXTENSION AND STRENGTHENING OF RATIONING.

Rationing administration would be greatly strengthened and rationing extended to include all essential goods.