Arnold M. Soloway, assistant professor of Economics, said Monday night that a revised, graduated income tax would be the fairest and most effective way to solve Massachusetts' financial dilemma.

Speaking at a Catholic Labor Guild panel, Soloway supported a graduated income tax instead of the proposed three percent sales tax, and asserted the income tax would raise more revenue and distribute the tax burden more equitably than a sales tax.

"Income tax administration in Massachusetts has been terrible," Soloway charged. He asserted that the state could collect from five to ten million dollars more in revenue if everyone who was supposed to pay taxes did so.

He also urged additional financial aid to Boston and other cities, noting that at present the state was not filling its responsibilities to Massachusetts cities, lagging in welfare and education grants.

"Boston's problems are really not of its own creation," Soloway said. "I think the state should give much more to Boston and the large cities and towns." In addition, he said, "statewise, we lag in school aid, per capita grants to cities, and city welfare problems."

He attacked the sales tax proposals becuse they would place more financial burden on low income groups than they could afford to pay.