1 MA?L TRIBUNE, Medford, Or9, Unity. Bacamlwr 14, 1MI
State Tax Structure, Spending
linear Limit, Dr. Sly Concludes
Salem - (IPD - Oregon's tax
structure and spending pro
grams have gone about as far
as they can go if the state
expects to maintain a favor
able tax position with com
petitive states.
That was the main conclus
Russell Denounces
Gag on Filibusters
Washington-CPD-Sen. Rich
ard B. Russell (D.-Ga.) assent
ed yesterday that a proposal
to place a majority gag on
Senate filibusters was a "big'
ger" issue than the entire civil
rights controversy.
The Senate armed services
chairman, leader of forces op
posed to a rules change and
civil rights legislation, said
that permitting a majority of
the Senate to restrict debate
would "destroy the character
of the Senate.'
"Freedom of speech in the
Senate is one of our greatest
checks and balances," Russell
said in an interview. "The
question of changing the Sen
ate rule on limitation of de
bate is bigger than the racial
question itself."
He said that even the pres
ent rule on limiting debate
was "too restrictive." This
permits such limitation only
- when two-thirds of the full
Senate membership has so
voted. One compromise ad
vanced by Senate Democratic
Leader Lyndon B. Johnson of
Texas would allow the gag by
a vote of two-thirds of those
present and voting.
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ion of Dr. John F. Sly, New
Jersey tax expert, in his final
report to Gov. Robert D.
Holmes and the advisory com
mittee of the State Depart
ment of Planning and Devel
opment on the state's fiscal
situation.
Senate liberals are ready to
launch a battle on the open
ing day of the 86th Congress,
Jan. 7, to force a change that
would enable a majority of
the new Senate, or 50 mem
bers, to impose cloture on de
bate. After such a limitation
was voted, each Senator
would have one hour of de
bate on the issue in contro
versy. Russell said his feelings on
the rule issue were not dic
tated by his opposition to leg
islation to advance school in
tegration or other civil rights
proposals.
His view is shared by some
non-Southerners who are con
cerned about protecting mi
nority rights in the Senate.
Westerners, like Democratic
Whip Mike Mansfield (D.
Mont.) are in this group.
Mansfield . particularly re
calls that it was freedom of
debate in the Senate and the
personal opposition of the late
Sen. Robert A. Taft (R.-O.)
which blocked Senate action
on a House - passed bill to
draft striking railroad work
ers into the army.
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Dr. Sly said Oregon must
choose from new excise taxes,
new bases for its income tax,
a consumer sales tax, or a
combination of these for any
additional revenues.
Tax Suggestions
He makes these suggestions
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ONLY $37,000 That's all
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for possible new tax revenue
for the 1959-61 biennium.
1. A cigarette tax of 4 cents
a package to raise 114 million
dollars.
2. A real estate transfer tax
at 1 per cent to raise eight
million dollars.
3. A 1 per cent alternative
gross income tax within the
present personal income tax
to raise seven million dollars.
4. A 1V per cent annual
tax on the market value of
passenger cars. .
5. A 2 per cent Washington
type consumers sales tax, if
new expenditures in excess of
50 million dollars from the
general fund are anticipated.
Ways and Means
Purpose of the report, call
ed for by the governor, says
Dr. Sly "was to suggest ways
and means of adjusting the
Oregon tax structure toward
a more effective development
of the economic life of the
state."
To improve Oregon's busi
ness and investment climate,
Dr. Sly suggested changes in
tax structures and policies so
the state would have:
1. No personal tax on capi
tal gains if the asset is held
longer than one year.
2. No tax on manufactur
ers' inventories.
3. No property tax on in
dustrial buildings during the
period of construction.
4. A reasonable inheritance
tax.
5. An established state-wide
uniform assessment ratio.
7. Responsible restrictions
on voting local excess levies
and bond issues.
Restraint On Spending
"If Oregon is to maintain a
favorable tax position with
competitive states it must ac
cept for the time being a re
straint on spending programs,
a restraint on additional reve
nues from its present income
levies, and a restraint on ex
penditures from its property
tax bases," Dr. Sly said.
He added: "Oregon's in
crease in state and local taxes
has outpaced its increase in
income. The state is not now
in a good position to under
take a heavy expenditure pro
gram and the fiscal expert
cautions Oregon to "go slow"
on large tax and expenditure
programs until the state's eco
nomic base shows increasing
strength.
The report discusses at
length Oregon's problems in
inheritance and timber taxa
tion. Timber Taxation
On timber taxation, Dr. Sly
suggests a continuation of the
present approach of placing
the ad valorem property tax.
To switch to another tax base
for timber would require too
drastic adjustment at the
present time, Dr. Sly felt.
The report makes two rec
ommendations in the property
tax field:
1. A state-wide uniform as
sessment ratio possibly 40 per
cent to replace the present
policy of county - determined
assessment ratios.
2. Reasonable restrictions
on excess levies and bond is
sues. Washington Practice
On the last point, he sug
gested that the Washington
practice of requiring 35ths of
the voters at a special election
at which the total votes cast
must exceed a stated percent
age, 40 or 50 per cent of those
voting at the preceding gen
eral election, he considered.
Dr. Sly will appear before
a joint session of the state
Legislature early in January
at a meeting sponsored by the
State Department of Planning
and Development to discuss
the final report.
Earlier reports on the econ.
omy and taxes plus the pres
ent and potential tax struc
ture of Oregon, were released
in July and September.
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GOING TO CONSISTORY Gaetano Cardinal Cicognani (left) greets three cardinals
elect as they arrive at Rome airport, after a special non-stop flight from Boston to
attend Vatican Consistory ceremonies next week at which Pope John will award
them their red hats. The three cardinals-elect are (left to right, after Cardinal Ci
cognani) Msgr. Amleto Cicognani, Apostolic Delegate to the U. S. and brother of
Cardinal Cicognani; Archbishop John O'Hara of Philadelphia; and Archbishop
Richard Cusbing of Boston.
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Medford Youngsters May Telephone Santa
Medford vicinity youngsters
may telephone Santa Claus
to make their Christmas re
quests four evenings this
week as a service of the Med
ford Kiwanis club's "Hello
Santa" project.
Kiwanians have arranged
the service with Pacific Tele
phone and Telegraph com
pany. Children may call
SPring 3-7353 between 7 and
9 p.m. Tuesday, Wednesday,
Until about 1850, it was
customary for playing cards
to have plain white unmarked
backs because card players
believed these could not be
easily marked.
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Thursday and Friday, club
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