Excise Tax Cuts and the Economy

March 24, 1965

Report Outline
Impending Changes in Federal Excises
Excise Taxation in U.S. Fiscal History
Attempts to Balance the Tax Burden
Special Focus

Impending Changes in Federal Excises

Some excise taxes will be repealed, and others will be reduced, next July 1. How many of the numerous levies of this kind now collected will pass out of the federal fiscal picture entirely—and how many will be assessed at lower rates—is not yet certain. President Johnson has said only that he will ask Congress to make excise tax changes that will reduce the total yield by $1.75 billion. There is no doubt that Congress will comply. Pressures for reduction are so great, in fact, that the amount of revenue lost by the cuts is likely to be considerably more than the sum cited by the President.

Use of Excise Reduction as Economic Stimulant

There have been indications that the administration will not make strenuous efforts to hold the volume of excise reductions to the revenue figure that was originally proposed in January. On the contrary, if the economy within the next two months shows signs of slowing down in the latter part of the year, the administration itself may request more extensive excise cuts as a means of stimulating sustained growth.

Chairman Gardner Ackley of the President's Council of Economic Advisers, testifying before the congressional Joint Economic Committee on Feb. 19, said that “The uncertainties in the outlook underline the importance of flexibility in fiscal policy.” Ackley expected the economy to continue to expand. However, his testimony made it seem probable that additional excise reductions would have a green light at the White House if it developed that “a marked … slackening from our recent rate of progress” was likely to occur in the second half of the year. The Joint Economic Committee on March 17 called the proposed $1.75 billion reduction insufficient to permit “the thorough overhaul [of excise taxes] that is desirable.” Although the committee named no specific amount, it recommended larger excise tax cuts “because even the most optimistic forecasts for the coming year do not promise achievement of … maximum employment, production and purchasing power.”

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May 19, 1978  Property Tax Relief
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Feb. 10, 1971  Property Tax Reform
Mar. 26, 1969  Tax Reform Pressures
Mar. 24, 1965  Excise Tax Cuts and the Economy
Feb. 15, 1961  Flexible Taxation
Apr. 02, 1959  State Tax Problems
Apr. 23, 1958  Tax Reduction, 1958
Aug. 14, 1957  Fast Tax Write-Offs
Apr. 10, 1957  Federal Payments in Lieu of Taxes
Sep. 12, 1956  Corporation Profits and Taxes in Prosperity
Mar. 16, 1954  Shares in Tax Relief
Nov. 21, 1953  Revision of Excise Taxes
Mar. 19, 1953  Federal-State Tax Relations
Oct. 01, 1952  European Taxes and Tax Evasion
Nov. 03, 1950  Excess Profits Tax
Feb. 01, 1950  Tax Loopholes
Jun. 04, 1949  Excise Taxes
Oct. 27, 1948  Postwar Sales Taxes
Aug. 29, 1947  Taxation of Family Income
Apr. 09, 1947  Income Tax Relief
Jan. 11, 1946  Taxation of Cooperatives
Oct. 16, 1945  Federal Taxes on Business
May 08, 1944  Postwar Taxes
Sep. 20, 1943  Sales Taxes
Dec. 05, 1941  New Taxes for Defense
Apr. 05, 1941  Taxation for National Defense
Feb. 28, 1941  Taxation of Alcoholic Beverages
Jan. 11, 1941  Exemptions from Taxation
Dec. 04, 1940  Federal Taxes and Defense Financing
Feb. 01, 1940  Sharing of Tax Revenues
Feb. 02, 1939  Turnover Taxes in the States
Nov. 05, 1937  Broadening of the Income-Tax Base
Jun. 17, 1937  Exemptions from Income Taxation
Apr. 05, 1937  Coordination of Federal and State Tax Systems
Dec. 19, 1936  Revision of Federal Tax on Capital Gains
Nov. 02, 1936  State Taxation of Natural Resources
May 26, 1936  Assessment of Property for Taxation
Apr. 17, 1936  Federal Taxes on Consumption
Mar. 19, 1936  Taxation of Undistributed Corporate Profits
Dec. 17, 1935  Reduction of Tax Burdens on Real Estate
Oct. 21, 1935  Tax Delinquency in the United States
May 21, 1935  Comparative Tax Burdens in America and Britain
Feb. 01, 1935  Federal Taxation of Corporations
Nov. 27, 1934  Elimination of Conflicts in Taxation
Jul. 25, 1933  Taxation of Excess Profits
Jan. 25, 1933  Tax Burdens and Tax-Free Securities
Nov. 23, 1932  The Beer Tax and the Sales Tax
Dec. 19, 1931  Sales Taxes: Federal, State, and Foreign
Sep. 18, 1931  Death Taxes and the Concentration of Wealth
Mar. 18, 1931  Federal Taxation of Large Incomes
Jan. 10, 1931  Taxation of Capital Gains
Nov. 09, 1929  Federal Tax Reduction-1930
Aug. 08, 1927  Federal Tax Reduction—1928
Sep. 27, 1926  Tax Reduction and the Public Debt
Jan. 16, 1926  Taxation of Estates and Inheritances
Nov. 07, 1925  Federal Taxation of Small Incomes
Nov. 28, 1924  Social, Fiscal and Legal Aspects of the Inheritance Tax
Apr. 07, 1924  Causes and Effects of the Tax Return Blockade
Dec. 12, 1923  Tax Exempt Securities
Dec. 10, 1923  Taxation
Economic Analyses, Forecasts, and Statistics
Tax Reform