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We must expand the long-run strength of our economy. We must move along the path to a higher rate of growth and full employment. For this would mean tens of billions of dollars more each year in production profits wages and public revenues. It would mean an end to the persistent slack which has kept our unemployment at or above 5 percent for 61 out of the past 62 months--and an end to the growing pressures for such restrictive measures as the 35-hour week which alone could increase hourly labor costs by as much as 14 percent start a new wage-price spiral of inflation and undercut our efforts to compete with other nations. To achieve these greater gains one step above all is essential--the enactment this year of a substantial reduction and revision in Federal income taxes. For it is increasingly clear--to those in Government business and labor who are responsible for our economy's success--that our obsolete tax system exerts.
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