Federal tax discrimination against stockholders is criticized in this mouth's issue of the Quarterly Journal of Economics published by the University Press this week.

Professor William L. Crum of the University of California writes that the current system of taxing corporation profits and dividends impanel a far heavier burden on the income of stockholders than it does upon the becomes of men who do not own stocks.

Families with small incomes are especially hit, writes Crum, by the "double taxation of dividends." The article suggests partial removal of the present tax inequities, although the author recognizes that the current need for revenue will block the major changes needed to "current the burdens" on stockholders.

"Encourage" Risk Capital

Crum's changes would reduce tax receipts but "would encourage" the flow of risk capital into corporations.

At all levels of incomes, Crum says, the rate of taxation on corporation incomes for their stockholders is higher than the rate on other men's incomes, but the author adds that below $10,000 the rate on stockholders is always several times greater.

Crum lays the major blame for the inequition at the heavy tax on the net incomes of corporations. Corporative withholding of dividends may also be responsible to a lesser degree for the situation, the author says.

Increases in corporation taxes, such as now advocated by the administration, are criticized in the article on the grounds that they would also increase tax inequities.

Crum says stockholders face a far heavier tax burden at each level of income than they would if they were taxed as partners in an unincorporated business.