HEPPNER GAZETTE -TIMES. Thursday. October 3. 1963
HEPPNER
GAZETTE-TIMES
MOEBOW COTJNTTS NEWSPAPER
The Heppner Gazette, established March 30. 18&3. The Heppner
Times established November 18, 1897. Consolidated February IS
1912. Single Copy 10 Cents. Published Every Thursday and Entered
at the Post Office at Heppner, Oregon, as Second Class Matter.
WESLEY A. SHERMAN
Editor and Publisher
NIWIFAMt
ASSOCIATION
HELEN E. SHERMAN
Associate Publisher
NATIONAL EDITORIAL
A Look at the State Tax Referral
Even those most ardently opposed to tax Increases in any
form will recognize that taxes are fundamental in the economic
structure of democratic government. Whether on the federal,
state or local level, government could not provide services and
benefits which the people expect of it if there were no taxes
to pay the bill.
Thus, for those who believe In the democratic way of life,
their objections to any tax must be on the grounds that it Is
unfair or inequitable, that it Is not based on the ability to
pay, or that it is designed to provide some service or services that
the people believe are unnecessary or do not want to pay for.
As voters of Oregon prepare to go to the polls on October
15, then, they should examine the taxation proposal with these
thoughts in mind.
The 1963 legislature approved the measure that would pro
vide $60 million to balance the $404,000,000 budget for the
biennium, and the budget as adopted by the session pared
Governor Hatfield's proposed budget considerably.
The ease with which more than 55,000 signatures were ob
tained to refer the measure to the voters clearly demonstrated
widespread indignation, whether justified or not. This stemmed
from many avenues. Many persons, reacting to continuously
higher taxes, summarily oppose tax increases in any form.
Some have declared that it is a "bad" tax bill, perhaps because
it incorporates the elimination of the federal Income tax de
duction from state income. Others believe that costs of education
and other state-supported services are too high. Some have
particular grievances against various agencies of government,
stemming from what they consider to be misuses of public
funds.
When it became evident that the matter would be referred
to the people, various departments began to examine what
defeat of the legislature's program would mean to them and
what services they would have to curtail. As they reported
this information, it brought cries of "threat" from those opposed
to the tax program.
It is certain that no one at this point can predict accurately
just what cuts must be made in all areas if the program is
defeated, but it is equally certain that there will be cuts In
many places. It Is now the voter's problem to attempt to de
termine what they would be and how important they are.
Education, which received 85 of the increase in the budget,
would undoubtedly feel the biggest blow. One probable result
in higher education will be that admission standards would
be made more restrictive on the academic level in order to
hold enrollments down. This means that not all students who
are qualified under present standards will enjoy the privilege
of attending a state institution even though their parents are
paying their share for the support of those institutions.
A cut would be made In basic school support funds from
the state, which now provides about 33 of the cost of public
school education on the theory that everyone not only property
.taxpayers ehould share Jn the cost of public education. The
State Department of Education theorizes that the drop in basic
school support would be about 14, but Rep. Jack Smith, a
member of the House Taxation committee, feels that it would
approximate about 8 or 9. In any event, this would put that
amount back on the property tax and goes against the con
cept accepted by the legislature that all taxpayers, not Just
property., owners, should share In the costs of public education.
Morrow county's school budget this year passed only after it
was thoroughly pared and the district would be hard put if It
lost some of its basic school support.
A cut might be made on welfare, but Rep. Smith believes that
this is a poor place to pare because for every 1 cut by the
state, another 1V4 would be lost from matching funds.
On the local level, indications are that Morrow county would
lose the state tax appraisers now engaged on reappraisal pro
grams. This does not mean that the farm reappraisal program
would be abandoned but It probably would take longer, and
the bulk of the cost would be borne on the county level, against
property taxes, instead of the state contributing a substantial
portion.
State extension service has Information out that some 6-1
county agents may be released if the curtailment comes. This,
again, may be construed to be a threat, but it is a distinct
possibility. In Morrow county's case it would be the height of
irony to lose one of its three county agents after the voluntary
campaign for $3100 has been concluded to restore the budget
to assure that the three remain here!
These are only a few examples of possible reductions In
services.
Of the costs to state government, three categories take more
than four-fifths of the general fund education ($234,000,000),
public health ($36,000,000) and social services ($49,000,000).
Lump all others together and they approximate $60,000,000.
Thus, the approximate amount to bo raised by Measure 1
is about equal to that for all state services under the general
fund except for education, public health and social services. It
must be understood, however, that these are separate from
dedicated funds which are supported from revenue other than
that of the general fund. Included under dedicated funds are
Highway commission, Liquor Control Commission, Board of
Forestry, Game Commission and others.
Those under the heading of dedicated funds are affected
very little by the tax measure because they are not dependent
on the income tax. Thus, if a voter has a grievance against any
of these, he will not serve his purpose by voting against
Measure 1.
There are 38 separate "reforms" in the measure. Among the
most important are: 1. Changing the definition of income
subject to taxation including student Income and capital gains
income. Under Measure 1, taxpaying parents would be able to
claim a $600 exemption for a student over 18 going regularly
to school even though he earns more than $600 per year. At
the present time, this exemption is allowed by the federal
government but not by the state.
Change, on the cnpltal gains remove re-investment require
ments and lowers the maximum tax rate for capital gains
income from 9.5 to 5. This is designed to encourage invest
ment and check the trend of persons moving out of Oregon
to escape capital gains taxes.
2. Increased medical deduction and removal of the federal
deduction. Now limited at a celling of $1250, medical deductions
under Measure No. 1 are unlimited. Any amount spent for
medical costs, over 5 of Income, would be deductible.
Most controversial of all parts of the bill is the elimination
of the federal tax deduction. Some say this Imposes a tax upon
a tax because one pays a state tax on income that is spent for
payment of federal tax. However, the effect, even though it
increases the state income tax for the individual, is to reduce
the federal tax because the person lias greater state tax to
deduct from the federal return. This means, then, that the
federal government will pay a portion of the Increase.
Supporters of Measure 1 declare that the federal deduction
destroys progressivity of the income tax in Oregon to the point
that the lowest taxpayer on the economic totem pole is paying
at a rate of two per cent or less of his total income, and the
individual at the top is also paying two per cent or less of his
income to the state.
Had the legislature done only the one thing remove the
federal income tax deduction it would have provided for
more than enough to make up the $60,000,000, but the other
portions of the measure were set up as needed reforms.
3. Lowered tax rates and improved treatment of single per
sons with dependents. At the low level, tax rate will be 2
as compared with present 3 and at the top, it will be 7.5
as compared with the present 9.5. Under present law a head
of household pays the same tax as one who files a single
return. A widow with two children pays more taxes on the
same income than a man and his wife and one child. Measure
1 corrects this and provides that the head of a household (an
unmarried or widowed person with dependents) is treated the
same as married individuals filing joint returns.
4. Revised personal exemptions and dependency allowances '
so that the same amount of tax reduction occurs for the same
size family unit regardless of income. Under present law, the
$600 subtraction from adjusted gross income for self and each
dependent Is worth $18 as a tax reduction for a taxpayer
filing in the lowest bracket (3 times $600), but the same $600
subtraction is worth $57 to one filing at the highest level
(9.5 x $600). The new law would do away with the exemption,
and in its place, substitute a $22 reduction each for self and
wife and $20 per dependent child from the amount of tax. This,
then, would help the low income earner but cost proportionately
more to the higher earner. At the same time, It would treat all
equally. In other words, each personal exemption or dependent
deduction would be worth the same to all, regardless of in
come. 5. Broadened the tax base and provided a minimum tax if one
has taxable Income. Under the new law, anyone earning more
than $500 would pay some Income tax, minimum of $5. This is
on the theory that all should share In the costs of government.
Many persons enjoy government benefits costing thousands
of dollars and pay neither income nor property tax.
6. Raised the corporation excise tax slightly, representing
a .5 per cent or less Increase in corporate tax rates.
7. Provided that, should the law raise too much money,
property taxes must be reduced. If Measure 1 is approved
and brings in more money than anticipated, any surplus above
$10,000,000 will go to counties, cities and school districts to
reduce local property taxes.
Since education seems to have the greatest stake in this,
it may need closer examination. Taxpayers may feel that too
much is being offered in this field. In higher education, how
ever, state institutions had total enrollment of 23,000 students
in 1960-61 and it is projected that there would be 33,700 in
1964-65, a gain of 10,000 in five years. It is obvious that this
jump of one-third is bound to add costs.
Voters who would curtail education might consider that
all have a financial responsibility for youth. If they do not
provide education for the students so that they can eventually
be productive to society and themselves be in a position to
share in the costs of government, they may eventually have to
pay for their support in a non-productive capacity under un
employment compensation, welfare, on in correctional insti
tutions. Should Measure 1 be defeated, the legislature will probably
be called for a special session. Some $14,000,000 might be raised
by the expedient of requiring the payment of withheld income
taxes on a monthly basis rather than a quarterly basis for
larger concerns, and some additional sums can be raised
by special taxes, which, as Rep. Smith puts it, would be so
specialized that those affected could not generate enough
"steam" to have them referred. However, this could not close
the gap entirely.
Some believe that a no vote will force the legislature to put
up another sales tax bill, and these people believe that it
could be passed this time despite a record of defeat at the
polls.
No one can say with certainty, however, that it would
carry. While It seems that the sales tax is drawing more support,
it may be that sales tax proponents are becoming more vocal and
that the wholehearted voter sentiment Is still not there.
It can readily be seen that this measure has many ramifi
cations, and it Is a highly important matter for the voter to
weigh before he casts his ballot. Rep. Smith gave a rather
thorough analysis of It at the Chamber of Commerce meeting
here Monday and discussed the pros and cons. It is too bad
that everyone In the area could not have the opportunity to
hear his discussion and pose questions to him. Another oppor
tunity is coming Wednesday night when he appears at the
PTA meeting at Heppner High school.
Voters who would like to hear an analysis of Measure 1 by
a man who has spent many hours studying it and working
on it should attend.
New Cars Bring Excitement
If you don't like to watch the World Series and if you don't
go deer hunting, chances are you still may find this a most
exciting time of year.
It is the time that the new model cars come out and go
on display. Everyone enjoys looking them over and admiring
the streamlined glamour that they present. Some fortunate ones
have waited for this time of year to trade, but others retreat
into the dream world of wishing.
Heppner is fortunate to have so many makes and models
from which purchasers may make selections complete lines
in Chevrolets, Fords, Mercurys, Pontiacs, Bulcks, Ramblers,
Willys Jeeps, and GMC Trucks. That's a pretty fine assortment.
This paper has announcements of several of these, together
with news pictures of some of them. They look irresistible!
Join the gang and go to the dealers to give a look!
TO THE
EDITOR.
Dear Mr. Sherman:
My impressions of the Mor
row County Picnic at Laurelhurst
Park this summer were so dif
ferent from those expressed by
Mr. Gerald A. Rice in your Issue
of September 19, 1963, that I
read his comments with consid
erable surprise. This will also
undoubtedly be the reaction of
the many, many people who told
me that they, too, had a wonder
ful time.
I was so busy visiting with all
the old friends and even found
a former Morrow Countian at
the Four Square Picnic next to
ours that I missed the dead
dodo crying in his apron. There
were a few who had suffered
serious illnesses during the past
year, but they had the old Mor
row County spirit to be there,
and cheerfully visited with all
of us who approached them.
And as long as we're on the
subject of the Bible, how about
not casting the first stone but
helping our neighbor? Mrs. Dor
othy Olston and her assitants
are to be highly commended for
the time, effort and work thev
contributed to make the Morrow
County Picnic a most enjoyable
affair.
Sincerely,
Elaine SIgsbee George
1 COMMUNITY V
j BILLBOARD K
The Keep Oregon Green As
sociation asks that you be extra
careful with fire of any type
when in or near the woods. Pay
rolls and the economy of your
community depend on keeping
forest fires from starting. If you
don't prevent forest fires . . .
who will?
Coming Events
MORROW COUNTY ROLLER
SKATING RINK
Fair Pavilion, Heppner
Open Fridays and Saturdays,
7 to 10 p.m.; Sundays, 2 to
5 p.m.
GRAND OPENING
Fiesta Bowling Lanes
Friday evening, October 11
Join in the festivities Prizes,
entertainment, lots of fun
for everyone.
Join A League Now
HEPPNER HIGH FOOTBALL
Heppner vs. Stanfield, Rodeo
grounds, Heppner.
Friday, Oct. 4, 8 p.m.
Support the Mustangs!
CATHOLIC SMORGASBORD
Plan now to attend
October 20, 3 to 7 p.m.
St. Patrick's Parish Hall
Tickets 52, $1, 75c. Pre-school
tree.
SPONSORED AS A PUBLIC
SERVICE BY
C. A. RUGGLES
Insurance Agency
P. O. Box 247 PH. 676-9625
Heppner
Chaff and Chatter
Wes Sherman
HERMAN GREEN says that he
has been treating himself very
kindly these days. Through the
summer his boys have been
helping him a great deal, but
now they have gone back to
college and high school and he
is the only one that is left to
take care of his sanitary service.
"I'm afraid if I slip and treat
myself mean, I might get mad
and quit. Then there would be
no one to do the work," he de
clares. DON GILLIAM is ready to wave
the white flag, throw in the
towel, or pat the mat. He knew
he would be dodging bullets
if he went deer hunting on open
ing week-end, so to be safe, he
went down to the Columbia
River to go steelhead fishing.
What happens? A rifle bullet
comes zinging by and hits about
20 feet away from him. Don
didn't have a foxhole handy but
he took refuge behind some
rocks, then was afraid the rico
cheting bullets would get him.
So he scampered out of there as
fast as he could. He never fig
ured out whether the yardbirds
on the highway above had
thought they spotted a deer or
were just testing out their rifles
without thinking that anyone
would be goofy enough to go
steelhead fishing on opening day
of buck season.
JACK AND SHIRLEY Loyd didn't
dodge hunters' bullets, but
they did pick a 22 bullet out
of the siding of their house, and
that gave them something to try
APW Project Comes Here
When it was announced at Chamber of commerce nere some
time ago that Morrow county is eligible under the Accelerated
Works Program to spur employment, it was quite obvious that
the businessmen were a little skeptical about it.
But announcement this week that the Forest Service will
have a $70,000 improvement project under the program comes
rather swiftly, considering the slowness with which the govern
ment wheels usually grind. It indicates that the Heppner Ranger
district was ready to go with its plans and applied at the right
time. The project will bring fine improvements at Tupper, hub
of the field operations of the district, and will do a little to
strengthen local economy, even though many believe that there
is very little unemployment here.
This is a feather in the cap of the Forestry staff here and
will be a benefit to the area.
to figure out. They don't know
whether enmpnnf. had been
shooting around in the residen
tial district or whether it was
a wild bullet from a more dis
tant point.
EVERY EDITOR experiences mo
ments of terror when someone
reports reading some bad error
in his oaper. We felt one of these
moments coming on the other
day when it was told to us that
someone in Pendleton had read
our paper and said that we had
Jack Smith, representative in the
legislature, listed as a Republi
can in a news story.
Suppressing our qualms of
fear, we grabbed the file and
looked back at recent stories
about Smith, but could find no
reference to his being a Reoub-
lican- .
We did note, however, that we
started the most recent story,
"Rep. Jack Smith . . ." Our good
reader probably mistook the ab
breviation for representative as
the abbreviation for Republican.
WHEN REPRESENTATIVE
SMITH was here the other
day, he told the Chamber of
Commerce that after coming
home from the legislature he
sympathized with Jose Jimenez
who was quoted recently as say
ing, "I am glad to be anywhere."
"Like Jose," said Jack, "I'm
glad to be anywhere but
Salem!"
OUT AT THE work day at the
new Anson Wright Memorial
park recently, Orville Cutsforth
challenged Judge Oscar Peter
son to a contest on digging holes
for the rest rooms to be installed.
Cutsforth declared it was strictly
no contest that the judge wasn't
even in it. The judge claimed
a foul, however, declaring that
Cutsforth gave him a shovel
with a broken handle;
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