What Dr. Rinfret proposed for the economy .

Dr. Pierre A. Rinfret. noted international economist and author of a recent forest products report (See The Merchant, June, p. 12 and July, p. 11), discussed new economic proposals now under consideration.

The world-wide inflation problem, according to Dr. Rinfret, must be first overcome in the U.S. "The United States represents 48% of the free world's production," said Rinfret. If we can successfully fight our inflation, then the rest ofthe world will follow."

Detail by detail, he spelled out the deficiencies in our tax laws that penalize the small business, the man who saves and the man who risks his limited capital. Conversely, the "over-consumer" is helped by our tax laws.

The financial expert pointed out that the best answer to inflation is increased productive capacity. Funds for capital expansion, as well as construction, must be made available if inflation is to be alleviated. Thus, the government must stimulate capital expansion by tax incentives and must also encourage savings by tax law changes that reward savings and penalize over consumption.

Rinfret's formula for the latter is to (a) make the first $1,000.00 in earned interest on savings tax free; (b) do away with the tax deduction for interest paid on installment purchases, at least on the first $1,000.00 paid; (c) provide better treatment on capital gains and taxes for small businesses; (d) do away with tax deductibility on home mortgages on second and third homes.