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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (July 9, 1963)
Legislators Divided Over ODinion amnntr th Jackson county's state legis lators is somewhat divided over what would happen if the referendum on the new tax measure is defeated in the October election. Two of the representatives, John R. Dellenback and Ed ward Branchfield, both Re publicans, appeared at the Monday luncheon of the Med ford Chamber of Commerce Roundtable to answer a list of nine questions drawn up by the political affairs commit tee of the chamber. The third lawmaker. Demo crat James A. Redden, was unable to attend the luncheon but instead submitted his answers in writing which were read to the group. Re publican Sen. Lynn W. New bry, who also was unable to attend, had commented on the questions at last Monday's Roundtable meeting. Questions Reviewed The questions, followed by representative comments by the legislators, were: 1. What will be the status of our economic fiscal policy if the referendum on the new tax measure is defeated in the October election? Redden predicted "chaos." Without the needed $60 mil lion in revenue, he said the result would be a "drastic cut" in services, particularly in the higher education budg et. He also forecast a sharp rise in local property taxes is a consequence. Branchfield said he thought the state would be in "serious difficultr" if the referendum were beaten at the polls, but he felt "chaos" was loo strong a word. He agreed with Red den, however, that there would have to be a drastic curtailment of services, par ticularly in the field of educa tion. Taxes Would Go Up "If the basic school support is cut," he said, "local proper ty taxes will go up." He said the choice would be either to effect "reductions in spend ing," or to have the legislature meet in special session for passage of a different tax measure. Dellenback said there "would not be- chaos," but rather the legislature would have to meet to do something about it. He was pessimistic about the chances of a better tax measure coming out of a special session of the legisla ture, however. "There is no guarantee a new session would do any bet ter than the last one," he said. Since there are no limitations on what business could be un dertaken by a new session, Dellenback said a "Pandora's box might be opened." 2. We are unable to under stand why the legislature voices concern about the peo ple supporting the sales tax and then turns around and re fuses the sales tax for a vote by the people. Support Was Late Redden said the bill was not referred because those with divided attitudes toward the measure were unable to work out a compromise, and be cause strong support for the sales tax "was late in coming." 4-H NEWS Daffy Dills Awards were the main Items of business at the last meeting of the Daffy Dills 4-H club. Mrs. Arnold Bohnert, president of the Central Point Garden club, presented sever al awards received at the re cent convention of the Oregon Federation of Garden Clubs In Portland. The Daffy Dills received a blue ribbon for outstanding achievement in junior garden ing in the state: James Anhorn received a trophy and check as the "All Around Junior" and Mrs. Anhorn, our leader, received an award of achieve ment for outstanding junior leadership in Siskiyou dis trict. Marsha Wilson and Zelda Clark received first place youth awards for the two divi aions of a litterbug coloring contest. Mrs. Bohnert also presented James and Cathy Anhorn trophies from Mr. and Mrs. C. C. Hoover for their blue ribbon tree planting pro ject. Entry blanks for the com Ing fair exhibits and contests were discussed and each mem ber reported on their garden. At the Central Point 4-H Pre- fair. Marsh and Cathy re ceived blue ribbons. Andrea and Jane received red and John, white, in a flower ar ranging contest. At a recent meeting Mrs Piclaet. Perry Pielact, De Anne Trautman and Martha Van Middlesworth of Merry Mulcheri 4-H Club and Susan McCoy. Cindy Gordcn and Diane Jantzer of the Little Gardeners were our guests to see a filmstrip on flower arranging - "Adventuies with Flowers." Bob Snook is a nrw mem ber with a large vegetable project. Lee Korner, ' Reporter. He predicted a sales tax would have failed in the fall election had it been referred, but that "if the present tax program goes into effect, a sales tax will probably look much bet ter two years from now." Branchfield reminded the group that attitudes toward the sales tax were about equally divided in the House, but that the bill as such was never actually voted on. He said he would support a sales tax if it were part of a "co ordinated over-all tax pro gram." He warned the audi ence, however, not to expect "miracles" from such a tax if it should be passed some time in the future. Dellenback said he had some serious reservations about a sales tax. In particu lar he attacked the argument that a sales tax would gain revenue from the tourist popu lation that visits the state j every year. ! A Specious Argument ! "This is a specious argu-j ment," he said, "because tour ists don't spend money on ! items that would be taxable i under the measure." The sen-; ior representative also cau tioned that it is "too easy" to increase a sales tax some time in the future so that ulti mately the individual's tax burden would be greater than it is now. 3. The logging Industry pre sented a convincing case for fair treatment on PUC rates, indicating that they use Ore gon's highways only about 25 per cent of the time on the average and yet their rates re main the highest in Oregon while heavy freight trucks using our highways 100 per cent of the time get a reduc tion. Why? The three representatives pointed out they had voted against the bill, and that large ly through their efforts a proposed flat rate fee increase to 15 per cent had been re duced to 10 per cent. Redden said a logging Industry relief bill should be introduced in the next session of the legis lature. Reasons For Failure 4. What are the major rea sons v hy the constitution failed to pass the Senate and where do we go from here? Redden said it failed be cause of the Senate's "general dislike of the article dealing with the so-called 'single ex ecutive.' " Branchfield said that it an educational program were conducted to Inform the pub lic about provisions , of the proposed constitutional revi sions, he saw a "good chance" for passage in the 1965 ses sion. Dellenback said passage of the measure would have been a "forward move for Oregon." He said that organized labor unions had taken a stand against the bill but, to his knowledge, had never stated the reasons for their opposi tion. Eliminate Requirement 5. Other states have elimi nated the inequitable full crew requirement on railroads because of technological prog ress. Why Is it impossible to do the same in Oregon? Redden said he felt the leg islators were concerned about the safety of the public if the third brakeman were elimi nated." Branchfield said that the Senate bill, which died in the upper house, was "heavily lobbied," and that the law will never be changed until the railroads and the unions agree on a legislative pro gram." Dellenback agreed that the "safety factor" was the reason for defeat of the measure. 6. Does the individual legis lator think that the fiscal policy of the stale is condu cive to economic expansion In Oregon? Redden said "there is no one single item discouraging industrial growth, but he urged a study of the Oregon business climate, one which would cover "taxes, power rates, freight rates, availabil ity of freight cars and other aspects." Branchfield said flatly "yes," he did think the fiscal policy encouraged economic growth. "The total tax pro gram doesn't prohibit indus tries from coming into the state," he said. Some changes are needed, however, he stated. Dellenback said that many factors have to be taken into consideration in such a mat ter, not just the tax structure, although he conceded the "tax picture perhaps gives rise to some problems." Industries looking for an opportunity to relocate weigh a variety of elements in choos ing a new site, he said. He said that so far Oregon can't compete with California and Washington because those two states have a greater con sumer market right now than Oregon does. He pointed out, too, that Oregon's freight rates are undoubtedly a problem now. Failure of Receipts Tax 7. In reference to H B. 1033, please explain reasons for the failure of our legislators to pass a net receipts tax which would have offset the inven tory tax. Redden said that he had voted against the bill, which passed the House, because he considered the "technical de fects in the . . , bill . . . most serious." It wouldn't elimi nate the tax, he said, it would just create another tax. Branchfield saia mat in his opinion the tax experts "were divided" on whether the bill was good or not. He said he considered the present inven tory tax law "unfair," and that he had voted for the pro posed measure, but that it had been killed in the Senate. Dellenback said that H.B. Home for JCF MEDFOHD IVhat Could Happen If Referendum 1033 was a "bad bill" and "should not have been passed." He referred to a bill passed by the House in 1961, but which died in the Senate, as a "good bill." This one would have provided only "token relief," he said, and would in effect have created a new tax. He granted it would have provided perhaps a "minimal relief" for some now, but warned it would have proved "dangerous" in the future. Why Tokan Budget 8. 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Dellenback, taking a more temperate line, said that his concern was not for Civil De fense as such, because he did not feci Oregon would be a target in the event of a nu clear war, but he was con vinced that the state's disaster relief facilities should be strengthened and developed. Will Need Facilities "We will need facilities to handle refugees from other states In the event of a disas ter," he said. The only ques tion now is whether the exist ing three-man staff can suf Fioameneg pmnrp Home Financing Needs on income designed home loans IN RIGHT AWAY! Main, Medford ficiently coordinate the ac tivities of the state's other agencies in such a program, the legislator said. 9. How do you explain your reasons for passing H.B. 1234, the so-called sub-division law? Redden termed the measure "an example of governmental control over a large group of businessmen necessitated by the conduct of a few." He said that "growing scandals in cen tral and eastern Oregon" necessitated action. Won't Have Problems Branchfield, who was In strumental in drafting a re vision of the original bill, said Ashland TUESDAY, JULY 9, on Tax Defeated that the "honest broker won't have any problems with the measure," and that "most of the things in it, the reputable broker is already doing." Dellenback said the bill was passed because there was a "demonstrated problem" in existence. He said he spoke against the bill all the way, and noted that it had been changed several times before it was finally passed. "The bill reaches beyond those who should be hit," he said, but he told the group he had received personal assur ance from the state commis sion that waivers would be Building a New Home? We fit your home loan to your income Come in and talk over your plans right away & Loan Branch -337 E. Main, Ashland A 3 granted to legitimate small subdividera from many pro visions of the law. : SHIP IT LASME to ar from Oakland, tin Fran ciico. Lot Anaalts ini oth California points. 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