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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Sept. 18, 1957)
IHIolmes Criticized By lowry for Calling SpeciaS legislature Critcizing Gov. Robert Holmes for calling a special session of the legislature this fall, Sen. Philip Lowry Monday declared "After all of the facts are known to the public it would seem that the conclusion is inevitable that the only emergency which exists is a political emergency con fronting the governor and the political faction which surrounds him." Senator Lowry made the state ment during an hour-long talk for Jackson County Republican Women and others attending the September meeting of the wom en's group Monday noon at Rogue Valley Country club. The senator said the emer gency which has arisen results from the excessive taxation program adopted by the Demo cratic controlled legislature at its last session." He also said it is Interesting to note that many prominent and responsible Dem ocrats do not share the gov ernor's opinion. He named Lew Wallace, Boyd . Overhulse and Senator Ben Musa as among those who do not. The speaker said he believed that state problems should be approached in a non-partisan manner, and added that "the problem of taxation at the reg ular 1957 session did not, in my opinion, receive non-partisan treatment and that is probably why we are now to the point of going into special session to cor rect what, according to the sur plus figures released by the gov ernor, amounts to a colossal blunder." Senator Lowry declared that prior Republican administra tions in Oregon had provided "efficient, clean and honest gov ernment" and that its primary concern had , been good govern ment, rather than the furthering of any individual political am bitions." The speaker reviewed open ing events of the 1957 session and said Governor Holmes had not lived up to his promises to advise the legislature of the fis cal condition of the state. "The promised repeal of the 45 per cent sur tax took place in name only," he said "and was replaced by a change in the permanent tax rates which in effect em bodied a 51 per cent surtax. "I have no hesitancy in say ing that I think the 45 per cent surtax passed under a Republi can controlled administration in 1955 was a bad mistake. I op posed that bill, as well as the personal income tax bill of the 1957 session. The net result of the 1957 tax program has been to give Oregon the severest tax program in its history, and prob ably the most severe in the United States. "To implement this tax pro gram, full withholding rates were put into effect and it is now being realized that such stiff withholding rates, which are completely unjustified, have broad political ramifications." The speaker said he believed that because the Governor is now being criticized by his own party he has "seen fit to select the State Tax commission as the scapegoat for the tax debacle of the 1957 session." The senator added "It is charged that the State Tax commission grossly underestimated receipts which were anticipated under the 1957 tax program. "Any experienced legislator or any legislator who bothered to scrutinize these figures will know that they are purposely kept on the conservative side in order to avoid the threat of a property tax at the state level. The task of attempting to esti mate receipts is most difficult. In the final analysis, the re sponsibility for the excessive taxation imposed by the 1957 regular session must be assumed by the Governor and those legis lators who voted for the bill." Citizens Misled Senator Lowry said press re leases had led citizens to believe that there is now on hand and available for the legislature to "play around with" a surplus in the amount of $69,000,000, whereas in reality "the simple fact is that the commission has now seen fit to predict that the current revenue program will produce a surplus of this figure as of July 1, 1958." He pointed out that the chair man of the tax commission, tes tifying before the Senate Spe cial committee last Saturday in Portland, had stated that the surplus now on hand was not in excess of $20,000,000, and since the legislature had planned a balance of at least $10,800,000, only $10 million could be deem ed surplus at this time. He also said that the income tax is ex tremely sensitive to economic changes, and since many were predicting a high unemployment this winter; it would seem that no legislative action to give away a "paper profit surplus" should be made until we know it is on hand. The senator was also critical of the commission chairman for refusing to make available the figures on which the Governor was basing his surplus estimates. Charles Schuh to Speak at Conference Eugene Charles Schulz, creator of a popular comic strip, "Peanuts," has been invited as guest speaker for the annual banquet of the Oregon High School Press conference. The conference will be held at the university campus Oct. 11 and 12. Schulz. voted "cartoonist of the year" by the National Car toonist Society in 1956, is from Minnesota. He also is author of four books based on the strip. "There is no place for secrecy of any kind in any government, and particularly when the tax payers are being called upon to bear increasingly heavy bur dens," he added. Concluding that "the worst possible thing that could hap pen would be for this special session to engage in a political auction contest to see who can make the most poltical hay out of a bad situation," Senator Lowry offered a five-point pro gram to rectify the errors which have been made. He said Oregon should "take the state out of the real prop erty tax field once and for all; the special session should refuse to make any further appropria tions; any available surplus, ex cept for a reasonable balance for emergency purposes, should be used to effect a permanent re duction in the rates retroactive to Jan. 1, 1957; consideration should be given to automatic ap plication of any future surpluses to the reduction of the public debt and persons over the age of 65 should be given a double exception for personal income tax purposes." Senator Lowry concluded by saying "Fine words and fancy phrases from the Governor or anyone else will not solve our problems. We must pursue a course which will keep existing capital at work, attract new cap ital and thereby create jobs and produce incomes so that people can afford to pay a reasonable tax. Responsible Democrats and Republicans alike should be pre pared to work together to pro duce such a program. 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