HERALD AND NEWS. Klamath Falls, Ore.
Wednesday, January 23, 1963
PAGE S-A
Bi-Partisan
Support Seen
For Tax Bill
SALEM (LTD - Gov. Mark
Hatfield's score lax bill, designed
to raise at least $1 million
new revenues, arrived in the
House Tuesday with bi-partisan
support.
..The "net receipts" state income
tax bill was turned in by R e p.
victor Auyeh, R-Beaverton.
Its key feature is a one per cent
tax to be levied on all income
without any deductions of exemp
tions. In addition, a graduated tax
tanging from two to five per cent
would be levied, replacing t h e
current three to nine and one-half
per cent range.
The bill is the central part of
the governor's program to reform
Uie income tax structure and to
fjftance a proposed $405 million
general fund budget.
'The other main source of new
eevenue would be a four-cent cig
arette tax.
Although rates in the new pro
posal are lower, more money
would be raised by picking up low-
bracket earners and by eliminat
ing deductions such as olher tax
("..charitable contributions, medi
el. expenses, interest, and losses
. Business expense deductions
still would be allowed.
The current $600 exemption also
would be eliminated. In its place.
a $20 credit for each dependent
would be subtracted from the fi
nal graduated tax bill.
Husbands and wives living to
gether would be required to file
joint returns.
The State Tax Commission esti
mated under the new proposal a
man earning $2,000 a year and
having two dependency credits
would pay 3 per cent more in
overall federal-state income taxes
A man earning $4,000 would pay
4.1 per cent more; a man earning
$6,000 would pay 3.5 per cent
more; a man earning $8,000 would
pay 2.9 per cent more; and a man
earning $10,000, 3 per cent more
Above $10,000 the increase
would be less than 1 per cent.
JFK Starts
State Trend
SALEM lUPI) "If a tax cut
Is good enough for Kennedy, it'si
good enough for me.
The comment came from
Republican Sen. John Hare of
Hillsboro today as he dropped a
bill calling for a 10 per cent flat
cut in the slate income tax into
the midst of the legislature's
.money woes.
He said such a cut should be
followed by "a cut in spending
tax dollars and not by deficit
spending."
"Tax spenders have lain awake
nights trying to find new sources
of revenue," he said, "But no at
tention has been given to light
ening the tax load of our peo
ple." Hare's proposal for a tax cut
landed in a legislature that has
been asked to raise $23 million
in new revenues for the next bi
ennium by broadening the state
income tax base with what the
governor calls a net receipts tax.
"Oregon has the highest income
tax of any state in the Union."
Hare replied. "Reduction is in
order." j
"Waste and extravagance must
be eliminated, and sound business
practices should be used," he
said, "and this statement also ap
plies to institutions of higher education."
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University Room, Board
Boosted $40 Per Year
PORTLAND IUPH - The State
Board of Hither Education Tues
day boosted tlie cost of room and
board at its campus dormitories
by about $40 a year, starting next
fall.
Chancellor Roy Lieuallen said
the increase would hike the typi
cal rate for multiple occupancy
to about $720 per student for a
school year.
Lieuallen said the new rates
were required "to meet increased
food, labor and other dormitory
operating costs. The added income
also will be used for more dor
mitories, he said.
About 50 students at 0 r e g o n
State last week demonstrated
against the proposed increase
About 9,000 students live in dor
mitories throughout the state sys
tem.
Most students live two to a
room, with some living singly or
three to a room.
The board also adopted Lieu-
alien's recommendations that "if
student withdraws from tlie
jdormilory but does not withdraw
(rom the institution, he must pay
all board and room charges (or
the entire year during which the
withdrawal occurs, unless he pro
vides a substitute occupant suit
able to the dormitory director."
On another matter, Lieuallen
eporled that dicrimination by
fraternities and sororities because
STILL IN CONTACT
MOSCOW (UPI). -Soviet scien
tists had regular tadio contact
with their Mais-1 space slatjon
all through last week, the official
Tass News Agency said today.
Tass said the Mars-1 is more than
25 million miles from earth.
of race or religion "appears" to
have been eliminated at Oregon
and Oregon State. He conceded
national charters of "two groups
on each campus" contain such re
strictions but said each has grant
ed waivers of the restrictions to
its Oregon chapters.
State Lists
Campus Jobs
PORTLAND IUPI1 - Tile State
Board of Higher Education Mon
day listed several campus build
ing projects it would like to start
in 1963 should the legislature in
crease its bonding capacity.
The legislature will be asked to
i n c r e a s e the bonding capacity
from $34 to $62 million with half
of the increase, or $14 million,
planned for use this year.
Projects for 1963 would include!
a swimming pool, dining hall and
dormitory for Southern Oregon
College; 150-student dormitory at
Oregon College of Education; a
280 student dorm including stu
dent activity quarters at Oregon
Technical Institute: a portion of I
the cost of a swimming pool at.
Portland State; an addition to Col-1
lege Center, air conditioning of the I
College Center building.
Two dormitories with total ca
pacity of 750 students at Oregon
State; a 170 woman dorm for the
University Medical and Dental
Schools; and two dormitories,
central food service, married stu
dent housing and land for future
dormitories at the University of
Oregon.
Fire Center
Postponed
SALEM it'Pl' Plans to es
tablish a statewide fire training
center on the east side of Salem
were temporarily delayed today
by the State Board of Control.
The Council of Governments
asked the board to make 10 acres
nf land east of the state prison
and west of the Salem freeway
available for the center cither
throuph sale or lease.
The board announced it favored
a lease of the land. It suggested
the council redraft its application
on a lease basis, and include
guarantees the facility will be
available to state agencies and
equipment at the center may be
used to fight fires at slate insti
tutions. Gov. Mark Hatfield said he wa
"enthusiastic" over the program,
and added "the state ha a chance
tn encourage local initiative
through inch program"."
In another action, the board
unanimously approved transler
in! Clackamas County patients to
Uammasch state hospital
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