FREDAY, AUGUST 4,1967 THE MICHIGAN DAILY Pe .W #r .Vll FRIDAY, AUGUST 4,1987 U A I"!W W'WUU'W £ £'3U '1AEEtbE.*5 Johnson Seeks Tax Hike ANSWERS REQUEST: LBJ Adds 45,000 Men 1o F. Requests 10 Per Cent Surcharge Wants Prompt Action On New Fiscal Plan; Changes 'Temporary' WASHINGTON (P) -President Johnson called. on Congress yes- terday to enact promptly a 10 per cent surcharge on individual and corporate income taxes, partly to pay for a new troop buildup in Vietnam. In submitting his tax plan in a special message, Johnson promised to hold down spending as much as possible and he asked Congress to do the same. With increased taxes and reins on spending, he said, the budget deficit for the fiscal year which ends next June 30 can be held to between $14 billion and 18 bil- lion. Otherwise, he added, the deficit could go as high as $29 billion. Midyear Review Johnson said a mid-year review of his budget shows defense spending will rise an additional $4 billion above the approximate $75 billion projected in January. In describing his message as a "financial plan for America's continued economic well-being," Johnson proposed that the sur- charge on individuals take effect on Oct. 1 while that on corpora- tions be made retroactive to July 1. Johnson called the surcharge temporary and said it would ex- pire on June 30, 1969, "or continue for so long as the unusual expen- ditures associated with our efforts in Vietnam require higher revenues." He refrained from labeling the surcharge a "war tax," however, and said it Is designed also to stem inflationary pressure, hold down interest rates, keep "Great Society" programs moving in view of recent racial disturbances and safeguard prosperity. 6 Per Cent Surcharge Johnson last January prdposed a 6 per cent surcharge to take effect last July 1 but administra- tion leaders have repeatedly indi- cated the rate could go higher. There had been speculation in recent weeks of a surcharge as high as 10 per cent. Under the surcharge, a person would add 10 per cent to his pre- sent tax bill. For example, an average family or four with an income of $10,000 plays about $1,100 in federal taxes under present rates. Under the surcharge the family's tax bill would increase by $110 over the course of a year. -nance Viet Ridildr n To Forces in War Zone UJ UV'U4. .,E..A L X A LjWASHINGTON -- President 461,000 total which was posted ing "may exceed our earlier esti- Johnson announced yesterday that at the time the President spoke. mates." He said that based on he had authorized an increase of Officials said the reduction is a present plans defense expenditures at least 45,000 more troops to be statistical matter and does not in .fiscal 1968, which ends next sent to Vietnam. "represent a drop in actual op- June 30, may top the authorized After the President's authorized erational strength." budget "by up to $4 billion." C vil o iet boost in troop strength is com- Rather, is was explained, the Review pleted, the actual number of men reduction reflects the number of To help offset this increase, in uniform in Vietnam will be transient-departing troops and Johnson said he has asked Secre- Il 'eases'about 525,000. their coming replacements-who tary of Defense Robert S. McNa- In a briefing outside the mes- are in the manpower pipeline at mara "to conduct a searching re- sage itself. the President talked of any one time. These are no longer view of all defense expenditures" Ins de C1111 a 45,000 to 50,000 increase. Thus, being counted as part of the in- and postpone any spending "not the actual buildup by the end of country force. now essential for national secu- Tthe year would be above 60,000. Suply Arms rity." TOKYO v(M-New and wide- Recommendations "This nation." the President Defense officials told newsmen sprea vionce hasmmuted C Johnson said he had reached said in disclosing the troop in- last week some planned aircraft many parts of Communist China!1 in a continuing tense struggle for his decision after considering rec- crease, "has taken a solemn pledge purchase are being cut back be- power, reports from the mainland ommendations of Defense Secre- -that its sons and brothers en- cause war losses in recent months indicated yesterday, and a Mos- tary Robert S. McNamara, the gaged in the conflict there shall have not been as high as pro- sdtheJoint Chiefs of Staff and Gen. never lack all the help, all the iected. tion of 700 million was headed for William C. Westmoreland, com- arms and all the equipment es- Phil G. Goulding, the Penta- civil war. mander of allied forces in Viet- sential for their mission and for gon's chief spokesman, refused to T r a e 1 e r s from Communist nam. their very lives. comment when asked how far the China were quoted in Hong Kong Currently, according to figures "America must - and will - newly authorized 45,000 troops as reporting bloody fighting be- revised yesterday, there are 454, honor that pledge." went toward meeting recent re- tween more than 20,000 support- 000 men in Vietnam, down from a The additional forces mean quest of Gen. William C. West. ers and foes of Mao Tse-tung in 464,000 total which was being used higher war costs, and the Presi- {moreland, the U.S. commander in Hunan, Chairman Mao's native by the Pentagon on July 1 and a dent warned that Vietnam spend- Vietnam. province. Additional 70,000 -Associated Press PRESIDENT JOHNSON YESTERDAY signed his proposal to Congress calling for "a temporary surcharge of 10 per cent" on both individual and corporate income taxes. ELECTION SEPT. 3: Viet Presidential Candidate Calls for Peace Negaotiations SAIGON WP) - Two civilians teamed in South Vietnam's presi- dential race called yesterday for peace negotiations with the Com- munists "at all levels, including the National Liberation Front" of the Viet Cong. This controversial p r o p o s a 1 marked the official opening of the campaign for votes in the national election Sept. 3. By injecting the issue of nego- tiations with the Viet Cong into the campaign, Phan Khao Suu and his running mate, Phan Quang Dan, put themselves in direct opposition to the stand taken by the military ticket con- sidered to be the best bet to win-- Chief of State Nguyen Van Thieu and Premier Nguyen Cao Ky. Peace Candidate Since the legislative assembly eliminated a ticket headed by peace candidate Au Thruong Thanh two weeks ago, it has been believed that peace-and especial- ly peace by negotiation with the Viet Cong-was a dead issue. Another ticket, headed by law- yer Truong Dinh Dgu, declared it was determined to stop the war. It proposed a ceasefire, a halt in the bombing of the North and a second Geneva conference. Some of the other 11 presiden- tial candidates also called for peace, but "not at any price." Most of them indicated they con- sidered negotiations with the Viet Cong would be too high a price. As before the campaign, the ticket of former Premier Tran Van Huong and Mai Tho Truyen offered a platform of stolid non- controversy. The Huong-Truyen ticket, considered by observers to be the leading civilan slate, pre- sented a platform that differed only slightly from that offered by the military ticket of Thieu and Ky. Thanh One note of possible difference was contained in a report by a Saigon news agency, Tin Viet, that Huong had decided to name Au Truong Thanh, the former peace candidate, as his economics minister in the event he won. Thanh served at one time as Ky's economics minister. But the fact remained that Thieu and Ky are still the front runners in the Sept. 3 election. Their advantages showed up in a mass appearance of the candi- dates on Vietnamese television. All the candidates were allotted five minutes to speak. Although some of the civilian candidates spoke for as long as six minutes, Thieu spoke for at least 10. The introduction he was given also was longer than that given any of the other candidates. Thieu spoke from a special podium. The other candidates were given less glamorous settings. Television All of the presidential and vice- presidential candidates were pres- ent for the television program ex- cept Premier Ky. Ky has said he will not do any campaigning. But just being pre- mier means that he will be mak- ing appearances all over South Vietnam. A special government airlift will fly the candidates to 22 loca- tions around the country during the month. Thieu plans to go on only a few of the trips and Ky says he will not go on any. Thieu and Ky are running on a platform of building democracy, solving the war and social im- provement, or as Ky says "social revolution." They will say they have been attempting to meet these goals in the two years they have been in power, but that the war re- quires so much of the national effort that it has been impossible. In the long uneasy, populous south China province of Kwang- tung, numerousdisordersaand pitched battles were reported to have been breaking out sporadi- cally, and reports reaching Tokyo said the Peoples Liberation Army had taken over there long ago be- cause of what Premier Chou En- lai described as "the extreme ur- gency of the situation." In turbulent Wuhan, the big triple city of Hupeh Province and economic heart of China, a Jap- anese report from Peking said that Chen Tsai-tao, rebellious commander of an army brigade, had been fired after a bloody out- break led by dissident army men. A Tass news agency dispatch in Moscow, attributing its infor- mation to unnamed sources, said "witnesses arriving from China report that the situation in cen- tral and south China increasingly resembles a civil war," "There are thousands of killed and wounded," it said. "Helicop- ters are dropping leaflets, urging a stop to the bloodshed. Hungry peasants are looting food stores. Continued clashes are reported between Mao Tse-tung's support- ers and anti-Maoists and also among servicemen." The Hong Kong reports on the violence in Mao's home province of Hunan said both sides fought with sharpened wooden or steel rods and added that occasional shots were heard. One informant said the clash had been "going on for seven days and has greatly affected train traffic between C a n t o n and Hankow." There also were reports in Hong Kong that anti-Maoist rail- road workers had repeatedly sab- otaged the line between the Brit- ish colony and Canton and Hong Kong officials said a sharp drop in the number of trains from Red China had been observed. The army takeover in Kwang- tung Province occurred in March, the Canton Kung-jen Chan-Pao, or Workers' Combat Bulletin, re- ported. The decision was made, the bulletin said, by Mao and the Central Committee of the Chinese Communist party. The following month, the bul- letin said, Chou visited the pro- vinde and, speaking of the urgency of the situation, expressed confi- dence in the military leadership. WASHINGTON (AP )- A Nash- ville, Tenn., police captain testi- fied yesterday that the Student Nonviolent Coordinating Commit- tee is teaching Negro children "pure, unadulteratedehatred of the white race," in a summer school subsidized by the federal govern- ment. The captain, John Sorace, said the subsidy is a $7700 grant from the Office of Economic Opportuni- ty. And he charged that militant Negroes who took part in Nash- ville's racial rioting last April are among the teachers at the school. OEO Grant "SNCC in Nashville is now the recipient of an OEO grant and this is a real problem," Sorace told the Senate Judiciary Com- mittee, which is looking into the recent waves of riots in Ameri- can cities., He said the grant did not go to the organization directly, but to a man named Fred. Brooks, whom he identified as SNCC chairman in Nashville. Sorace said Brooks is the di- rector of the North Nashville Stu-1 dent Summer Project. "They're running what they call a liberation school," Sorace said. He said the school is supposed to Policeman Critic0iz 'Liberation' School iitary men nad immediate approval tional 70,000 men. what Westmoreland noped to get for an addi- Specifically sought from teach Negro history and culture' and inspire pride in race among colored children. "According to our informants, they're also teaching hatred for the white man," Sorace said. "We believe in this instance, the federal funds are helping to per- petuate the problems of our ci- ties." Earlier, Mississippi Sen. James 0. Eastland said Negro rioters in American cities "follow tactics us- ed by the Communist party the world over." The spokesman said the libera- tion school is open to both Negro and white children and is similar to programs operated elsewhere in the country. the President has not been dis- closed but sources said he is un- deistood to have'expressed a need for additional units which would have raised the U.S. force to around 550,000 men by mid-1988. Some officers took consolation that the President used the phrase "at least 45,000." The 454,000 Americans now comprising the U.S. military force in Vietnam compares with 297,000 North Vietnamese and Viet Cong forces. The U.S. total includes 291,000 Army, 78,000 Marines, 55,000 Air Force, 29,000 Navy and 12,000 Coast Guard. Other free-world forces amount to 56,000. The administration currently is placing great emphasis on more effective use of the existing Amer- ican and allied units now in Viet- nam. __ _... _ _------.._ _ W u a HILLEL PICNIC SILVER LAKE PARK-SUNDAY, AUGUST+6 Leave from Hillel at 1 :30 Bring your own food-Hillel will provide pop IN CASE OF RAIN-MUSIC, FUN, GAMES AT HILLEL Everyone Is Welcome 1429 Hill St. Ij i t ~v. . __ _.. _.___..__._. ____. ..._-_.___.._ _.___. . .......... v. .. . ...__._....... .. ...® . .._._._. . r- ... . I I I w World News Roundup By The Associated Press WASHINGTON - Rep. Maston O'Neal (D-Ga), introduced a reso- lution yesterday calling for federal prosecution of Stokeley Car- michael if he returns to the Unit- ed States from Cuba. Carmichael, former chairman of the Students Nonviolent Coordi- nating Committee has been in Havana attending a revolution planning meeting and making statements about guerrilla action in the United States. O'Neal's resolution states: "It is the sense of Congress that if Sto- kely Carmichael returns to the United States the attorney gen- eral of the United States should institute criminal proceedings against him under the laws of the United States which provide penalties for sedition." In a speech prepared for de- livery in the House today, O'Neal said "The people of the United States are experiencing a sort of collective perplexity concerning the Justice Department's failure to do something about the in- famous Stokely Carmichael. * * * NEW York-Blaming the cur- rent copper strike, Phelps Dodge Copper Products Corp. announced yesterday it would add a sur- charge equal to three cents a pound to the invoice price of most of its fabricated products during September. The firm, a manufacturing sub- sidiary of the struck Phelps Dodge Corp., said the surcharge would not apply to rod. It said the charge was being made "to par- tially compensate the firm for copper it must purchase at pre- mium prices from other than do- mestic producer sources." It said its supply of copper had been shut off by a strike at its parent firm's mines and at the El Paso refinery. THE SHOCKING TRUTH ABOUT THE EVENTS hEAlING UP TO ONE Of THE -MOST VIOLENT DAYS IN AMERICAN HISTORY! RESCHEDULED AUGUST 3, 4, & 5 the emu summer theatre production of BY OSCAR WILDE 1' II In the intimate Quirk Amphitheatre at 8:00 P.M. For information and reservations Dial 482-3453 IL I LOOK FOR A SKY OF BLUE...: 4 'a' + ° ' -.A THE UNIVERSITY OF MICHIGAN SCHOOL OF MUSIC AND DEPARTMENT OF ART PRESENT MOZART'S OPERA DON GIOVANNI August 3 through 5, 8:00 P.M. JASON ROBARDS r n rfnnAr nrn n nu Inirrurn I A 11 if A t A I IJI I I I1111 1 11 1 8AI I I/I 1) I