TN their critical analysis of the evidence advanced by Colin Clark for his conclusion that taxation exceeding approximately 25 per cent of national income is inflationary, Messrs. Pechman and Mayer have successfully accomplished a much needed task. The concept of the 25 per cent limit was presented in both the Economic Journal and Harper's in an unqualified manner. It is little wonder that it has been incorporated into popular discussion on tax and budget policy as a new dogma. As is so often true, the assertion of an oversimplified proposition obscures the need for discriminating judgments in the formulation of alternative policies. The purpose of this note is to suggest some of the limitations and distinctions which should be recognized in applying the idea that taxation may be inflationary in policy determination. Three general propositions are stated below; on them there may be fairly general agreement. These are followed by brief comments on the current situation in the United States; on these there will inevitably be considerable disagreement. The latter opinions are expressed in a terse form, without full elaboration or listing of assumptions, to illustrate the extensive coverage, though not the thoroughness, of the analysis appropriate in the formulation of policy.

The accounting course for economics concentrators can and should integrate accounting concepts with those of economics. No attempt is made in this paper to consider the equally important problem of how integration with economics may be brought to accounting courses taught for concentrators in business administration, accounting and other subjects. If one turns to the authors of textbooks one gets little more help. Among the multitude of accounting textbooks while there are a few written from a management point of view there is none that attempts to integrate accounting with economics or even to present those aspects of accounting which are especially important from the point of view of economics. Before accounting and economics can be studied together, a knowledge of the rudiments of each must be acquired. The economics concentrator normally studies accounting after at least one semester of elementary economics. To supply a background in accounting, the accounting course must start with a brief training in bookkeeping technique.