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Tax reform is one of those motherhood issues—everybody's for it. Election year 1972 generated many far-reaching tax reform proposals which, if enacted, would have a profound impact on virtually every segment of American society. Senator McGovern recommended taxing capital gains at the same rates as ordinary income, eliminating almost $7 billion granted to businesses by reducing the investment tax credit and depreciation allowances, and offering state and local governments a 50 percent interest subsidy to encourage them to issue taxable, rather than tax-exempt, bonds. In addition, he proposed eliminating the percentage depletion allowance and the deduction for intangible drilling expenses—two provisions which currently diminish the taxes on income from the production of oil, gas, and other natural resources. And, even though President Nixon did not detail any tax reform proposals during the campaign, he did pledge to attempt to reduce state and local property taxes. Thus, tax reform, a much discussed topic in the past months, seems certain to become a subject of concern for the 1973 Congress.
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