'THURSDAY, FEBRUARY 15, 1968
THE MICHIGAN DAILY'
THURDAYFEBUARY15, 1968~lE 41CIIE~~T a ).l llVT' 1
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LBJ's Tax Bill Test
Of 'New Economics'
ARMY SURROUNDS CAMPUS:
Santo Domingo Students Riot
WASHINGTON (R) - The con-
gressional stalemate over Presi-
dent Johnson's proposed 10 per
cent income tax surcharge is the
toughest test yet for the economic
theory that has guided national
policy during the 1960s.
The outcome will chart the fu-
ture course of the "new econom-
ics" for years to come.
Keystone of this theory is the
argument that changes in tax
rates and federal spending can
smooth out the bumps in the busi-
ness cycle and foster healthy,
steady economic growth.
A tax cut when the nation faces
recession is supposed to perk
things up. This part of the theory
was tested in 1964 and again in
1965 when tax cuts were voted by
But the surcharge battle rep-
resents the first time the policy
has gone the other way - toward
a tax increase - and political re-
alities have so far proved strong-
er than economic theory.
No one likes to pay higher tax-
es. And congressmen don't like to
vote for them - especially in an
election year when voters have al-
ready opposed higher taxes in let-
ters and through nationwide polls.
When the theory was first test-
ed in the early 1960s - with a tax
cut - doubts were raised even
then that the "new economics"
But government economists
credit the tax cuts with keeping
the economy moving. It's now
i about to enter its eighth year
without a setback - the longest
expansion in history.
The "new economics" actually
had its beginnings in the 1930s
when the thought first surfaced
that a budget deficit or surplus
could be used to push and pull
But the theory remained un-
tested until the 1960s when Pres-
ident John F. Kennedy proposed
a tax cut to stimulate an economy
which, after recovering from a re-
cession in 1960, had again turned
Some government theorists con-
tend year to year changes in tax
rates are desirable to fine tune
the economy. But this hasn't been
tried to date.
The House Ways and Means
Committee has already shelved
the proposed 10 per cent sur-
charge on individual and corpor-
ate income taxes three times
since it was formally sent to Con-
gress last Aug. 3.
But the door hasn't been shut
completely and there are increas-
ing signs the tax may not be
dead. If it survives in some form
the "new economics" can also be
expected to remain an active
When the surcharge went be-
fore Congress last year,, govern-
ment experts anticipated a boom-
irg economy to back up their ar-
gument for higher taxes. The
economy began its boom but
strikes sent the figures sputter-
Now the government experts
forecast an even bigger boom
which they say could turn into a
recession down the line if taxes
Economic data for December
was bullish and the first data for
January - record retail sales and
the lowest unemployment rate in
14 years - continue the strong
SANTO DOMINGO ()-Domin-
ican troops surrounded the Na-
tional University yesterday after
a shooting incident with students.
But university and government of-
ficials headed off another con-
frontation by agreeing to evacuate
The government had warned
that troops would move into the
campus unless students who took
part in the armed clash gave
brief screening by university, po-
lice and government represent-
atives would be allowed to go
home. Then the police would
search the campus. About six stu-
dents were detained when they
failed to produce satisfactory
The Communist-led disturbances
were touched off when the gov-
ernment of President Joaquin
Balaguer refused to allow a stu-
firmed their control of the uni-
versity in recent elections.
Shortly after 1 p.m. yesterday,
shooting broke out in the univer-
sity area which had been partly
surrounded by national police and
U.S. trained riot teams. Two po-
licemen were wounded in the ex-
Red Cross officials who entered
the school said there was no evi-
dence that students had been hurt.
Most of the defiant students were
reported entrenched in the en-
Police attempting to break up
one of the meetings were greeted
with a hail of stones. Witnesses
said one of the youths fired a gun
wounding a police man who in
turn shot the youth dead.
The following teaching positions
will be open for the 1968-69
school year in the Ottawa Hills
UNGRADED ELEMENTARY: Up-
per Primary, Lower Primary,
Upper Intermediate, Lower In-
termediate, Kindergarten, Phy-
SECONDARY: English, Mathemat-
ics, Comprehensive Science,
Girls' Physical Education.
Applications may be secured by
writing to Larry W. Geresy,
Superintendent, 2532 Evergreen
Road, Toledo, Ohio 43606.
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Thompson s PIZZA
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Coupon is Gocd Only Tues., Wed., Thurs.,
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themselves up. About 50 defiant dent protest march on the Na-
leftist students were believed to be tional Palace to accentuate de-
holed up in university buildings mands for increased state sub-
after exchanges of gunfire left sidies to the university.
one civilian dead and three police- Although school authorities call-
men wounded. ed off the march, students decided
Under an accord reached late Tuesday night to go on with it.
yesterday, students who passed a Castroites and Marxists reaf-
LABOR DAY WEEKEND
CENTRAL COMMITTEE PETITIONING
National Theatre of Canada
SHAKESPEA R E'S
"A summer Night's Dream"
PETITIONS ARE AVAILABLE FOR SECRETARY, TREASURER,
PUELIC RELATIONS, EVENTS, AND PRODUCTION COM-
MITTEE CHAIRMEN IN UAC UNION AND LEAGUE
Students Reveal Plans
For Boycott at U of D
(Continued from Page 1)
A number of faculty members
and department heads at the
Jesuit school have indicated their
support of the student movement,
and some are slated to speak to
students at both today's "teach-
At WSU Co st
(Continued from Page 1)
plane fares, three cyprus plants
light bill of $54.19.
The newspaper contrasted Keast's
action to that of Michigan State
University President John Han-
nah, who "pays much of his own
personal expenses, including do-
mestic help and phone costs."
Hannah receives a $36,000 per year
salary, while the South End claims
that it was not able to determine
the official salary of Keast.
Keast refused to reveal it to
South End reporters, but said it
was listed in the Michigan Man-
ual, an official state publication.
But the newspaper quoted Don
Gordon, administrative assistant
to Lt. Gov. William Milliken - as
saying "there is no place where
those salaries are listed - why
don't you ask Keast to show it to
4 you in the Manual."
in and during the class strike
"It's a healthy project, because
the students are concerned with
what education is all about," com-
mented Rev. James Brown, S. J.,
chairman of Detroit's radio-tele-
vision department. "The weak
teachers have reason to be dis-
tressed, but the good ones strong-
ly support the student action."
Prof. John Mahoney, head of
the university's English depart-
ment; Bruno Leon, dean of De-
troit's architecture school; and
Canjar Lawrence, dean of the
engineering school, all indicated
their support for the student
action, and said they would partic-
ipate in the teach-in and address
the students during Friday's boy-
Student and faculty sources esti-
mate that as much as 80 per cent
of the student body may engage
in the class boycott.
Rev. Carron himself indicated
opposition to the boycott of clas-
ses, but said "students aren't
bound to attend classes - it's
At last night's rally, the students
carried numerous placards reading
"Make It Worth It," "We Want
Our Money's Worth," and "We
Want A Voice." They paraded with
about 40 torches to the Lansing
Reilly rectory, where the schools'
Jesuit teachers reside, and planted
the torches on the front lawn be-
fore dispersing. None of the priests
came outside, but many stood at
their windows watching.
DOUGLAS RAIN MARTHA HENRY
as Bottom as Titania
Directed by JOHN HIRSCH
Designed by LESLIE HURRY
---) SOLE U.S. ENGAGEMENT! 4-
THE BYRDS and CHRIS MONTEZ
in concert Fri., Feb. 23, 7:30 & 10:00 P.M., Hill Aud.
SEATS NOW ON SALE
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PRICES: Mon., Tues., Wed & Thurs. Eves., Sat: Mat.: Orch.: $5.50,
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Fri. & Sat. Eve: Orch.: $6.00, 5.00, Balc.: $5.50, 4.50, 3.50
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T HE U NIYVERS ITY OF M IC HIGA N
BLOCK DRAWING-Sat., Feb. 17, 10:00 A.M.
Conference Room 2, Michigan League
Individual Sales begin Monday, Feb. 19, 8:00 A.M.
of Hill Aud.
THURSDAY AND FRIDAY
director, Mark Donskoy, 1940
Comparable only to Flaherty and Satyajit Ray,
who credits Donskoy with best evoking
genuine and spontaneous sentiment.
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"A KALEIDOSCOPIC FRENZY"
Director: Jean-Luc Godard
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II UAl E% ,'iu~v~r~7 DIRECTEDD BYLII
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