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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 3, 1963)
Your Money's Worth By SYLVIA PORTER Copyright, Hall Syndicate, Inc. RUSSIAN CONSUMER PAYS FOR 'STALINST BUDGET (Thii it the aecond of a iwo-oart aeries) When President Kennedy submits the U.S. budget to Congress a couple of -weeks from now, it will be the signal for one of our noisier national squabbles over what government department is spending too much and which group 01 us is paying too much in income taxes for what ever is being spent. It happens every year on schedule and the outcome is almost always the same. Congress ends up spending even more than the President asked and each group of us from high income to low income, from big corporation to small business ends up insisting we're carrying far too big a share of the tax burden. When Premier Khrushchev submitted the new Russian budget to the Supreme Soviet a few. weeks ago, all the noise came from the Kremlin boasting about how much it was pending to ease the acute shortages of consumer goods and food in Russia today, to raise the quality of the shoddy goods, to spur industrial production. If you accept the official Soviet analysis of Russia's all-time high 86.1 billion ruble budget for 1963, you would conclude Khrushchev finally is trying to act to raise the Russian consumer's miserable stand ard of living. But a breakdown of the budget figures reveals, as yes terday's column emphasized, that the claims are outright lies. In the words of Dr. Ellsworth Raymond, professor in charge of Russian Area Studies at New York University, "it is a Stalinist budget." It will do nothing to end the grim shortages of food and clothing: it actually cuts ap propriations for Russia's farm economy; the overwhelming emphasis still on heavy industry and hot war armaments at the expense of civilian goods. Russia's Ivan doesn't retort, as our Joe might, "this budget is a lie", not only because he doesn't dare to but also because he doesn't know the breakdown. Nor does he argue about the taxes he pays, as our Joe docs, because he is not aware of the extent to which he, the Russian con sumer, carries the b irden of the budget. In fact, Ivan prob ably would produly tell you that in Russia, 91 per cent of the money to finance the budget comes from state and co operative enterprises and only 9 per cent comes from in come taxes a ratio any guillible Joe might envy indeed. "The truth is, though," says Raymond, "that the people pay for the whole works with the exception of the revenues from satellite trade and then the satellite people pay." To get to the hard facts. The Kremlin estimates total spending-Ior 1963 at 86.1 billion rubles, total revenues, at 87.6 billion rubles. Here's how Raymond figures the 87.6 billion will be raised. The biggest chunk of 33 per cent will come from the so-called turnover tax. This is a direct tax imposed pri marily on consumer items and its ranges from 40 to 300 per cent on luxuries (butter, clothing, perfume). Since it is a direct tax, it automatically raises the prices of the goods so high in many instances that workers couldn't afford to buy the things even if they were available. The next biggest chunk of 30 per cent will come from the 73 per cent profits tax levied on factories. Since this tax is collected mostly from factories producing consumer goods, it also is passed on directly to consumers in the form of higher prices for the goods. Another 23 per cent will come from a conglomeration of taxes on Russia's trade with her satellites, on collective farms, on the little artisan cooperatives, on land, on utili ties, etc. "In each case, the taxes simply take more rubles out of the people's poskets." The balance of 9 per cent will come from a mildly gradu ated income tax and a special tax on spinsters, bachelors, small families. The turnover tax is an Indiscriminate tax, falling as heavily on the lowest income buyer of food and goods as on the highest which is the reason the U.S. government has shrunk from trying it. The way Russia imposes her profits tax, it also falls heaviest on the consumer. As the Kremlin is hiding from her people the continuing emphasis on armaments Raymond figures at least half the budget is earmarked for military purposes so she is hiding from the little people the tict that they are footing most of the bill. This year, in the U.S., our squabbles over the budget's size and the income taxes we pay are slated to be the noisiest in years and for excellent reasons. After studying the Rus sian budget, I'm more grateful than ever that we can be and are so noisy. Ivan should have it so good. IT'S YOUR LAW Respect or Law MaVts Democracy Ltrt Editor's note: Oregon law yers offer this column as a public service. No person should apply or interpret any law without the aid of an at torney, who is completely ad vlied of the facts involved. Even a slight variance in facts may change the application of the law. UNORDERED MERCHANDISE Suppose the mailman de livers to you a package con taining a necktie, a book, key ring tags or a phonograph record that you didn't order. Either with it, or by later mail, is a bill or request to remit the price. Do you know your obliga tions, assuming you don't want the merchandise? Must you return it? Can you use it and not pay for it? Must you keep it, or can you throw it away? Generally speaking, recipi- ents of unordered merchan dise are under no obligation (a) to return it: b) to acknowl edge its receipt; (c) to pay for It unless used; (d) to give it particular care; or (r) to keep it beyond a reasonable time. Can Demand Storage You are obligated to sur render the merchandise if called for in person by the shipper or his agent within a reasonable lime. But you can demand storage charges be fore surrendering the item. If you mail it back at your own expense, you very likely will stay on the sender's mailing list and will receive other shipments in the future. There are no postal regula tions governing unordered merchandise, except where fraud is involved. Can Write 'Refuied' Congress is working on Irg islation that will cover the situation. Howcvrr. if you know what is in the envelope or package, you can write "Rr fused" across the face of Die piece of mail and hand it hark unopened to the mailman. No further explanation is re quired. You don't have to ac cept any class of mail. Furth ers your refusal probably will result in the sender having to pay return postage. A ruling by the Federal Trade Commission holds it a violation of the Federal Trade Act for a sender of unordered merchandise to claim lhat "The receiver is under obliga tion ... to pay for or return the merchandise." Hence, if you don't use the mer chandise, you are within your rights in refusing to pay for it. Lack of Parts Said Hampering Troop Training Washington (UPD In 1961 the aircraft carrier Forrestal had to put to sea without es sential parts for the fire fight ing equipment and main engines. At the same time, as many as a third of the M48 tanks at Fort Bragg, N. C, were out of operation. These situations were dis closed in a major report bv the General Accounting office Wednesday, It said the com bat preparedness of U. S. mil itary units has been "serious ly affected" by inability to obtain replacement parts and other supplies, even though the material was readily available. The GAO, Congress1 watch dog on federal spending, said the failure of Army, Navy and Marine units to get needed items significantly contribut ed to or was directly re sponsible for much high priority combat equipment be ing unserviceable. Training Curtailed uhe deficiencies seriously curtailed troop training at home and overseas, it said, and resulted in warships oper ating without essential mate rials that would be needed in an emergency. Comptroller General Jo seph Campbell said the Army has already taken some rem edial steps, and the Navy and Defense Departments were studying possible action. The GAO inquiry was launched in March, 1961, at the behest of John W. McCor- mack, who now is the speak er of the House. The GAO then looked into the supply set up for the 8th Army in Korea, the 7th Army in Europe, units at Fort Ben- ning, Ga., Fort Bragg, N. C, Fort Hood, Tex., Fort Lewis, Wash., Camp Lejeune, N. C, and aboard warships docking at the Norfolk, Va., Naval base, Pearl Harbor, San Di ego, and Mayport, Fla. It said shortages were found at all the military bases Visit ed with the exception of some ships. Tanks Unusuable v As prime examples, the GAO said, one fourth to one third of the M48 tanks at Fort Bragg were out of operation during the 1961 fiscal year and were in a "sub-standard condition" at various times. These combat vehicles were required by top priority strategic Army corps units," the report said. The GAO said the 7th Army in Europe eliminated or. cur tailed many troop training activities essential to combat preparedness during the same period because of supply trou ble. In addition, the report said the aircraft carrier Forrestal had operated without essen. tial material on board such equipment as the oxygen-pro during plant for jet aircraft fire fighting equipment and parts for the main engines. "A breakdown in any of this equipment, without the necessary repair parts on board, could adversely affect the operation and mission of the ship, GAO said. All of these situations oc curred even though most of the needed items were avail able at nearby supply centers, the GAO said. The main prob lem was that units and ships had "insufficient fund au thorizations to draw upon the items. Farms of the U.S. today have more cattle than any time in history. fr-Wl CLEAN lymHSL s For Your Convenience & Savings-Big Double load Washers IAIIUnDAUATs. IMtaTeuu 5.11 ' tiAKT NHtWOW mMin, 'STREET .-. - rrr.-m a CQURIHPUX Dennis the Menace 3U MRS IVLSONS GLASSES VtWX)iZO$fC0UK&VSZ' SECTION D PAGES 1 to 8 MedfordiWTribune MEDFORD, OREGON, THURSDAY, JANUARY 3, 1963 TV Network To Carry Hatfield's Report to People Salem-dTD-A statewide tele vision network will carry "report to the people" by Gov. Mark Hatfield begin ning Jan. 14, it was an nounced today. The announcement was made jointly by Hatfield and C. Howard Lane, president of KOIN-TV, Channel 6, Port land, originating station. The series of reports will continue through the state legislative session on alternat ing Mondays at 10:30 a.m. KOIN radiq will also broad cast the programs. Carrying the telecast in addition to Pendleton Farmer Gets Efficiency Award Detroit (UPI R. L. Harris of Pendleton, Ore., was one of 15 U.S. farmers winning Ford Farm Efficiency Awards, the Ford Motor Co. announced today. Harris was selected for his wheat production. County agricultural agents throughout the nation nomi nate candidates and their pro duction is measured against yield, cost and profit goals es tablished by farm specialists. Laurel, Md.-turil-T. V. Lark,' the 1961 winner of the Wash ington, DC. International, holds the course record for the mile and one-half turf classic 2:26 15. Channel 6 will be KVAL-TV, Eugene; KCBY-TV, Coos Bay; KPIC-TV, Roseburg; KBES TV, Medford, and KOTI-TV, Klamath Falls. The Klamath Falls station will carry the video tape at 11:15 p.m. Welcomes Invitation "The citizens of Oregon, In these coming days of crucial financial, educational and so cial decisions, are entitled to hear of our proposals and the reasoning behind them. I welcome this invitation to participate in a regular series in keeping with the public's right to know," Hatfield said. Lane pointed out "The me dium of television can do much to develop public understanding on the major issues of the day through pre sentations by our stale's chief executive. This is a public THE DANMOORE HOTEL 1217 SW. Mormon St. PORTLAND, OREGON All tranaienr guesra. All rhoie who come, return,. Rales not high, not low. Free garage, TV's and radios. Reputation tor cleanliness. Children Under Seven No Charge service of the highest order and importance and we look forward to providing it for the people of this- state through cooperation of the governor and the five asso ciated stations." TREE CAUTION New York-tUPD-Before you buy a Christmas tree, run your hand over the needles to make sure they are firmly at tached. If needles fall when brushed, the tree is dry and you should select another one, the National Board of Fir Underwriters says. THE Uttme STATES KATIOHAt SANK Of POUTtANO Mtmbf fadaral Depart lasmece Coreentiee E durinci Redecorate now and SPM FULL Big Pre -inventory CL! 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