Full text of Marriner S. Eccles Papers : Letter to Marriner S. Eccles, Box 79, Folder 10, Item 1

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:STM ENTS

January 14th, 1942

Hon. Marriner S. Eccles,
Chairman, Federal Reserve Board,
Washington, D. C.
My dear SirjI have read, with much interest,your recom­
mendation that there be an end to exemption of taxation of income
from State and Municipal securities.
This is going to be a pretty difficult thing
tfi> accomplish, as far as issues presently outstanding are
concerned, and I offer the suggestion that Congress fix
a limit of income from such securities to b© not in excess
of income from other investments, or fix a limit, say
of $20,000. or $30,000. annually. The amount in excess
thereof to be taxed as "excess tax exempt income1*.
I think some compromise of this kind would
lessen opposition, and, basically, it seems fair, consider­
ing the tax Immunity holders of the«e securities have had
for a number of years.
Very truly yours,

H.




"Remember Pearl Harbor“