THURSDAY. MAY 23. 19S3
MEDFORD MAIL TRIBUNE, MEDFORD, OREGON
o Definite Date (Forecast For Adoption of Tax Cut
Br VINCENT J. BURKE
United Press International
Washington - IUPU - When
will some version of the big
Income tax cut that President
Kennedy wants start moving
through Congress?
"The tax cut," said a vet
eran congressional tax writer
"is like an airplane at a fog-gcd-in
airport. You know that
the log eventually will lift
and the plane eventually will
take off. But nobody can say
exactly when.''
The "airport" is the big
meeting room of the house
ways and means committee
across the street from the U.S.
capitol.
The committee, which or
IgiOHles all tax legislation, re
ceived Kennedy's tax message
Jan. 24. It got the details from
Treasury Secretary Douglas
Dillon Feb. 6.
The plan called for rate cuts
and tax -tightening revisions
that would result in a net re
duction of $10.3 billion in rev
enues, with reductions staged
over three years.
Hear 200 Testify
The committee subsequent
ly heard 200 witnesses during
six weeks of public hearings.
Since then, it has questioned
treasury officials behind
closed doors for five weeks.
The pilot who is at the con
irnU has HisDlavpH little en
thusiasm for the take-off. He
Is the committee s politically
cautious and fiscally conser
vative rha Irman - Rcd. Wil
bur D. Mills, a Democrat from
Kcnsett, Ark.
Mnwcvcr. Mills says he
expects to bring a tax-cutting
bill out of the committee next
month. The rest of the Jour
ney to the White House could
take an additional four
months.
Conditions for passage are
likely to be better next month
than now, for two reasons:
-First, Congress by then
win hnv had a chance to
make more reductions In Ken
nedy's record high $98.8 bil
lion spending budget, rne re
ductions thus far are unim
pressive. -Second, efforts of a new
urnnn of 300 business leaders
organized to rally nationwide
support for a tax cut this year
may bear some fruit by then.
The group, whose support
was welcomed by Kennedy,
wants a $10 billion tax cut
iiiS
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nwiiniinmiit'i'.il
POSTURE CONTESTANTS A pair of Hotel Sahara show
girls at Las Vegas, Nov., use a plumb bob to check their
stance as they prepare for the Miss Nevada Belter Posture
Contest. The professional dancers are Dorothy Donnelly,
formerly of Cincinnati, Ohio, left, and Tonl Madscn, former
ly of Provo, Utah. (UPI).
4-H Club News
West Side Rabbiteers
The West Side Rabbiteers
4-H club held their meeting
recently at the home of Mrs.
Caldwell In Central Point.
President Bon Smith gave
the dates of the coming pre-
fairs and the county fair.
We discussed an overnight
campout, the girls in one area
and the boys In another. Com
mlttces were chosen to decide
where and when to go. Then
the meeting was adjourned
for a lesson on showmanship
Don Plnkham,
Reporter.
Woitiide Home Improvement
The Wostsldc Home Im
provement 4-H club met re
cently at the home of Wren
W 1 n n 1 f o r d. Refreshments
were served..
The business meeting was
dismissed this time as Mrs.
Kay was there to show us how
to do dry flower arrange
ments. Mrs. Kay first gave us
a talk on the different ways
to arrange the dry flowers
and then how to make the
flowers look as though they
were freshly picked. Then we
all were able to make our own
arrangemenls.
Earlier the cluh met at Ihe
home of Conny Varnnr. 2240
Table Itock rd. Mrs. Ricks,
our leader, brought some ar
ticles and wc practiced Judg
ing them. Afler Judging them,
we gave our reasons for plac
ing them in the order we did.
Mrs. Ricks then explained
why they were placed In the
order she had listed.
Sandra Mayficld,
Reporter
Milk Pail Wranglers
The meeting of the Milk
Pall Wranglers 4-H club was
held at the home of Mr. and
Mrs. Tonoy While. We had
three new members, who are
Lcttle and Roger Wclbuin and
Don Enloe.
We Judged four cows which
Mr. White was kind enough
to let us use. Mr. Cahail gave
us our scores on the Hoards
Dairymen's Judging contest.
tic also told us the impor
tance of Saturday's dairy
show. The meeting was ad
journed and refreshments
were served by Mrs. White.
Our next meeting will be held
at the home of Mr. and Mrs.
Summers.
Louise Herzog,
Reporter
Festival Is Subject
01 Magazine Article
The Shakespearean Festi
val, which opens for the 1963
season July 24, Is subject of i
a two-page article In the cur- J
rent Issue of PPG Products,
the maguiinc published by j
Pittsburgh Plate Glass com
pany. One page Is devoted entire
ly to color photographs of the
festival and the second page
continues the illustration
through more than halt of the
space Copy accompanied the
Illustrations.
The Plays Still the
Thing," it the festival, the ar
tide points out, while the fes
tival also has the "Feast of
Will," scholarship funds, an
institute for college drama
and the history of the festl-j
val's development.
without any of the tax-tight-1
ening revisions proposed by
the President.
The average voter is not
clamoring for a tax cut. Some
citizens are hostile. They be
lieve there is something im
moral about cutting income
taxes when the government Is
running a big budget deficit.
"The Puritan Ethic" is the
phrase used by Walter Heller
to describe this phenomenon.
Heller is chairman of the
President's Council of Eco
nomic Advisers. Most econo
mists share his view that the
country needs an income tax
cut to encourage
growth.
But Congress would not be
considering a tax cut now
if it were not for the strong
stand taken by Kennedy. Tax
reduction is the legislation
Kennedy wants most this
year.
Last summer the President
became persuaded that pres
ent tax rates produce unem
ployment by restricting eco
nomic growth. His political
advisers shudder when they
ponder how the odds would
change on Kennedy's reelec
tion prospects if the number
economic i of unemployed Ame r i c a n s
rose sharply next yeir over
the present figure of 4 mil
lion. Outlook Brighter
Dillon acknowledged re
cently that the business out
look now seems a little bright
er than Kennedy anticipated
when he sent his tax message
to Congress.
This has neither cooled
Kennedy's ardor for tax re
duction nor dimmed chances
that one will be enacted. But
it may influence the distribu
tion of lax relief.
If a recession were under
way or imminent. Congress i capital ' needed for long-term
probably would be more re-i economic growth. However,
sponsive to the demands of
organized labor that any re
shaping of Kennedy's tax pro
gram should increase - not
reduce - the percentage of
tax relief earmarked for tax
payers with modest incomes.
Most of these would spend it
quickly.
Businessmen have insisted
that Kennedy's program is too
consumer oriented already.
They believe a bigger share
of the proposed relief should
go to persons with high in
comes to provide more "risk
faced with a recession, even
some conservative lawmak
ers would hesitate to insist on
this.
Lower Taxes
Along with reductions in
corporate tax rates, Kennedy's
program would ultimately re
duce individual income tax
rates to a 14 to 65 per cent
range from the present 20 to
91 per cent.
Structural revisions includ
ed in Kennedy's program
would provide additional tax
breaks for some low-income
taxpayers. But they impose, tner mooei "
new tax loads on others, par
ticularly those with medium
and high incomes.
Before a tax-cutting bill
wins committee approval,
most 6f the hotly disputed
revenue producing revisions
will be Jettisoned. To offset
this loss of revenue, the com
mittee then will have to mod
erate the steep rate cuts pro
posed by Kennedy.
In fact, the committee prob
ably will decide to hold the
revenue loss below the $10.3
billion recommended by Ken
nedy. This would mean a fur-
cuts. It is in the designing of
a new rate structure that the
division of the tax-reducing
pie will largely be made.
The revenue-producing re
visions were included by Ken
nedy largely to placate Mills,
who told the President last
December that tax reforms
must be included in any tax
cutting bill. Mills now is try
ing to salvage in compromise
and less controversial form
some tax-tightening provisions
so the final product can be
advertised as p "tax reform"
measure.
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