Statement by the President Upon Signing the Revenue Act.

I HAVE today signed H.R. 10650, the Revenue Act of 1962.

This is an important bill--one possessing many desirable features which will stimulate the economy and provide a greater measure of fairness in our tax system.

The bill provides an investment tax credit. In combination with the recently revised guidelines for depreciation of assets, this credit will provide added stimulus to investment in machinery and equipment, and give American firms tax treatment which compares favorably with their competitors in world markets.

It includes several provisions designed to reduce tax avoidance on incomes earned by American companies and individuals at home and abroad. By limiting the opportunities to escape tax liability, it makes the distribution of tax burdens fairer and increases our total tax revenues from those sources.

Congress did not adopt the withholding system on interest and dividend income which I had recommended. However, as automatic data processing is installed by the Internal Revenue Service, the interest and dividend reporting requirements in the bill will be helpful in improving compliance with the tax laws on these sources of income.

In summary, this bill makes a good start on bringing our tax structure up to date and provides a favorable context for the overall tax reform program I intend to propose to the next Congress.