Before turning to matters of foreign policy, I would like to mention briefly two current domestic issues before the Congress which I know are of interest to you.
The first is this question of small business tax relief. I know your industry has a vital stake in such legislation, as does every small or middle size businessman in Massachusetts with whom I have talked. Unfortunately, the amendment sponsored by Senator Fulbright and myself which would have effected a graduated tax on current income, instead of the present tax which applies equally to all corporations, regardless of size, was defeated in the Senate last month by a vote of 52 to 33. I can assure you, however, that we intend to continue to press for the enactment of this and similar measures - that we recognize the urgent need for small business tax relief - and that it is equally proper to give priority in the distribution of polio vaccine or drought relief. You can help us in that battle by making it clear that you regard assistance to small business and revision of the Federal tax structure as something more than topics for political speeches around election day.
I have also co-sponsored with Senator Sparkman, Chairman of the Senate Small Business Committee, a small business tax relief package. This bill, in addition to the measure already mentioned, would permit small businessmen to utilize the benefits of rapid tax amortization or liberalized depreciation allowances for used or second-hand industrial equipment as well as new equipment; it would permit partners or sole proprietors to benefit in the same way as incorporated businesses from tax-exempt pension, profit sharing and stock bonus plans; it would ease the payment of estate taxes by those who inherit small family firms; and it would provide other revisions which I think you would find of particular interest. Certainly in these days of rising mergers and bankruptcies and declining credit, we in Congress should do everything possible to remove discriminatory legislation penalizing businessmen such as yourselves - and I assure you that I shall continue to work toward that end.
Secondly, I want to mention briefly this question of labor racketeering.
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