WEDNESDAY, SEPTEMBER 15, 1965
THE MICHIGAN DAI .Y
THE ICH 1 R flAII.V
PAGE THREE
,
Romney
Tax Plan Foes
Increase
as
Caucus
By CLARENCE FANTO
Gov. George Romney will at-
tempt during this session of, the
Michigan Legislature to alleviate
financial problems by proposing a
three per cent income tax pack-
age. Under the proposal, the state
would stand to gain about $150
million a year.
Romney has been discussing the
proposals with key legislators dur-
ing the last few weeks, but oppo-
sition to the plan is growing both
inside and outside the Legislature.
The governor has asked legisla-
tive leaders to allow him to ad-
dress a joint session "to discuss
the financial requirements and
public service needs of the state
at the earliest convenience." Ac-
cording to Senate Majority Leader
Raymond D. Dzendzel (D-Detroit),
the request will be granted as a
matter of "routine courtesy" eith-
er today or tomorrow.
Romney, who formulated the
tax proposals with a bi-partisan
group of legislators, told newsmen
recently that he would be willing
to accept the public blame if the
Legislature enacts an income tax,
but that this would be "unfair"
because the plan was not solely
his creation.
The major features of Romney's
plan are:;
--An elimination of the con-
troversial business activities tax
and a reduction in the "intangi-
bles" tax on stocks and bonds.
--A three per cent personal in-
come tax and a four per cent
corporation and financial insti-
tution profits tax, starting Jan. 1,
1967. Taxpayers would file a re-
turn to the state at the end of
the tax year, but money would be
deducted from paychecks. A $600
exemption would be granted for
each family member.
-Fifteen dollars in credit would
be granted for each member of a
family because of the new sales
tax. Low income wage earners
would gain tax relief by filing a
return and receiving a sales tax
rebate even if they were in a low-
income tax bracket.
-Individuals and business es-
tablishments would receive cred-
it for local property taxes equal
to 12% per cent of the property
taxes. The credit would take the
form of a rebate from the state.
--A three-cent state tax would
be levied on each pack of cig-
arettes sold, beginning next July
1.
Democratic House and Senate
caucuses, expected to be highly
critical, will convene in Lansing
Friday to discuss the plan. Rom-
ney has admitted that it will be
"a miracle" if his tax plan is
passed into law, but he intends to
introduce it as a bill in the Leg-
islature anyway.
The purpose of the tax pack-
age is to "spread the tax bur-
den more equitably among the
people and businessmen of all
kinds," Richard Van Dusen, the
governor's legal aide and an ex-
pert on taxes, explained recently.
But many politicians and labor
leaders disagree. August Scholle,
president of the American Fed-
eration of Labor-Congress of In-
dustrial Organizations, proposed
an alternative plan whereby the
Legislature would postpone tax re-
form and instead levy a corporate
profits tax of five per cent or
more to replace the present busi-
ness activities tax. Scholle feels
that legislators can help them-
selves win re-election next, year
by opposing Romney's plan.
House Speaker Joseph J. Ko-
walski of Detroit recently walked
out on a conference of legisla-
tors studying the Romney plan.
Kowalski charged that Romney
was refusing to take personal re-
sponsibility for the proposal.
The governor contends that the
tax plan which will go beforethe
Legislature is the product of about
10 Democratic and 10 Republican
legislators, plus Romney himself.
Sen. Coleman Young (D-De-
troit) contends that the Romney
plan as presently constituted could
not pass the state Senate. He de-
clared that the new taxes would
impose unfair burdens on Detroit,
Saginaw and other communities
which already have city income
taxes. But Romney claims the plan
would ease the total tax burden
on many Detroit residents.
Rep. Richard Young (D-De-
troit), a member of the House
Tax Committee, argues that most
people would be paying more tax-
es under the new plan. He claim-
ed that a typical family of three
children with a $10,000 yearly in-
come would be paying $85 more
per year under the Romney plan.
Two Republican legislators from
Ann Arbor, Sen. Gilbert Bursley
and Rep. Marvin Esch, are more
receptivento the governor's pro-,
posals. In the past, Bursley has
cent personal income tax. Esch
has accused the Democratic lead-
ership in the Senate of sacrific-
ing state interests in an attempt
to attack Romney.
Senate Republican Caucs Chair-
man Stanley Thayer of Ann Ar-
bor also supports the governor's
plan.
"An income tax will improve
the economy and actually bene-
fit those who pay it," he said re-
cently. Although citizens will pay
more in taxes, the improvement
in the economy will lead to a high-
er standard of living..
Although special interest groups
in the state have registered their
opposition to certain sections of
Romney's program, the overriding
obstacle the reform measure faces
is the reluctance of most average
Nears
sider to be an already heavy tax
burden, especially in large cities
with local income and special sales
taxes.
The grass-roots opposition to
the proposals is reflected in the
growing tide of criticism in the
Legislature, which reconvened
yesterday.
Romney contends that his pro-
posal would be the best tax pro-
gram in many years. "It would
give real relief to the people who
need it," he has said.
However, the outlook for the
plan is dim. No majority leader
or caucus chairman in either the
Senate or House is currently sup-
porting the bill. The Democratic
majority in the Senate Tax Com-
mittee will be free to "kill" the
plan in committee even if it pass-
I
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announced support for a 2 pen citizens to add to what they con-
New
York
F,
Voters Choose
ed the House.
Mayoral Race Opponents
Every other Big Ten
University has a
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Why not Michigan?
SGC Committee on the University
Bookstore
LENOY IMPORTS
DISTINCTIVE GIFTS
Mexican Handicraft
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Woolen Goods
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-Associated Press
SET NEW NORWAY GOVERNMENT
TO HEAD NEW GOVERNMENT-Leaders of the four parties which will form a coalition govern-
ment to run Norway are pictured in Oslo Tuesday after the general election which unseated the
Socialist government. From the left are: John Lyng, Conservative Party; Kiell Bondevik, Christian
Democrats; Per Borten, Center (Agrarian), and Bengt Roisland, Liberal Party.
ALSO STRIKE NORTH:
irmoile Troops Dig in at
n Khe; Planes Hit Viet Cong
Democrats
Pick from 4
Candidates
Lindsay Unopposed
On Republican Ticket
NEW YORK (A)-It was fine,
cool weather as Democrats went
to the polls yesterday to choose
a man to oppose Republican John
V. Lindsay for mayor.
Although the city's Democrats
outnumber Republicans 7-2, Lind-
say figures to make the Nov. 2
general election the hottest since
the days of Fiorello LaGuardia.
Lindsay is unopposed for the Re-.
publican and Liberal party nomi-
nations.
Victory in the primary was pre-
dicted by each of four Democrat-
ic contenders-City Council Pres-
ident Paul R. Screvane, City
Comptroller Abrahm D. Beame,
Rep. William F. Ryan and City
Councilman Paul O'Dwyer.
Most observers said Screvane
and Beame were neck-and-neck
for the lead, with Ryan coming
on and O'Dwyer trailing.
The size of the vote could be
determining. Although 2.3 mil-
lion Democrats are enrolled, the
top prediction was for 700,000 to
vote. Some predicted as few as
400,000.
The low figures are based on
the conclusions that no egntend-
er developed a campaign that ex-
cited the voters and that many
Democrats have already decided to
vote for Lindsay.
Ryan scored big gains during a
dull campaign by disclosing leaks
in the city's water system, while
citizens were being asked to save
every drop because of a drought.
The Screvane camp was said
to be worried that Ryan's gains
would cut into their vote.
Screvane's campaign manager,
Stanley Lowell, in a press confer-
ence, attacked Ryan for his al-
legedly ineffectual record in Con-
gress and as "the darling of the
wayouters on the peace issue" be-
cause of his criticism of United
States policy in Viet Nam.
"We've stayed away from Ryan,
but we shouldn't at this point,"
Lowell declared in the first public
admission that the congressman
poses a threat to Screvane's
chances in the primary.
Beame strategists see the Ryan
effort drawing strength from Scre-
vane's ticket with the result of
insuring Beame's victory.
New York's Attorney General
Louis Lefkowitz lodged a com-
plaint that Beame forces had cir-
culated postcards in Harlem Mon-
day allegedly coming from the
Board of Elections urging a
straight vote for the Screvane
slate.
Harlem was peppered yester-
day with circulars picturing Beame
with Negro leaders. It was ac-
companied by a letter bearing Rep.
Adam Clayton Powell's (D-NY)
signature, urging Beame's nomi-
nation.
Retiring Mayor Robrt F. Wag-
ner, a Democrat quitting the $50,-
000-a-year job after 12 years, has
endorsed Screvane.
Wagner is believed to need a
Screvane victory if he wants to
run against GOP Gov. Nelson A.
Rockefeller next year.
During the campaign, Ryan
charged the Wagner administra-
tion with diverting to the World's
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SAIGON (M') - Five thousand
"Flying Horsemen" of the U.S.
ist Cavalry Division, Airmobile,
took up positions in South Viet
Nam's vital central highlands yes-
terday as U.S. and Vietnamese
planes continued to pound Viet
Cong and North Vietnamese tar-
gets.
The Airmobile troops - about
one-fourth of the Army division-
dug in around An Khe, 260 miles
north of Saigon and on Route 19,
a key artery stretching from the
coast city of Qui Nhon to Pleiku.
The base, also. the site of a large
U.S. Special Forces camp, is in an
area some strategists have said is
vulnerable for a Viet Cong as-
sault.
As the battle-ready helicopter
soldiers dug in, elements of the
Army's 101st Airborne Division
clashed briefly with Communist
guerrillas nearby.
Advance elements of the Airmo-
bile group began making prep-
arations at An Khe in mid-Au-
gust. The first of the main force
landed Sunday at Qui Nhon, 35
miles to the east, and was airlift-
ed to its new base Monday.
The division is capable of rang-
ing swiftly over unfavorable ter-
rain and is expected to function
as a major reaction force in the
r u g g e d highlands permitting
South Vietnamese troops to be
used elsewhere.
In the air war, U.S. B-52 jets
from Guam made their 23rd an-
nounced strike and saturated a
target south of Ben Cat, about
20 miles north of Saigon, a U.S.
military spokesman said.
Thirty-five planes flew missions
in North Viet Nam, a spokesman
said, and heavy damage was re-
ported at the Co Dinh barracks
and storage area, 15 miles west of
Thanh Hoa; and at the Yen Khoai
military barracks, a favorite tar-
get in recent days, 30 miles north-
west of Hanoi. All planes returned
safely.
One American pilot was killed
when his aircraft exploded in the
air inthe Mekong River delta 110
miles southwest of Saigon. The
crash was believed caused when
bombs aboard the plane went off
prematurely.
In Bing Duong Province near
the area of the B-52 attack, gov-
ernment troops, bolstered by air
support, threw back an attack by
a Viet Cong force estimated at
1000 men 20 miles northwest of
Saigon. Government losses were
light and Viet Cong casualties
were not known, a spokesman said.
Vietnamese sources reported
government troops killed 117 guer-
rillas in an encounter in northern-
most Quant Tri Province and kill-
ed 15 others when a Vietnamese
patrol boat sank a Viet Cong
junk 25 miles south of Saigon.
At Da Nang, Marine officials
assessing two big amphibious as-
saults against the Viet Cong-the
Van Tuong peninsula Aug. 18 and
the Batangan peninsula Sept. 7-
10-said the enemy was apparent-
ly aware of the Batangan opera-
tion because the bulk of Viet Cong
left three days before Marines
landed.
An estimated 600 Viet Cong were
killed in the Van Tuong assault
and 198 in the Batangan opera-
tion. The peninsulas are about 10
miles apart about 330 miles north
of Saigon.
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W rld News Roundup
By The Associated Press
WASHINGTON -- The Senate
passed a four-year omnibus farm
bill yesterday.
The measure won approval, 72-
22, after it was revised on the
floor to conform more closely to
the views of the administration.
The legislation extends through
1969 major government support
?rncram ^"., ra n 4fnn ti... - af: f
allowing "Communist elements" to
infiltrate public offices and fox
failing to take a firm stand in the
struggle against Communist guer-
rillas.
VATICAN CITY-In the gath-
ering dusk, Pope Paul VI led 2500
prelates in a procession of pen-
ance through Rome last night
after reopening the Vatican Ecu-
than a Korean type of settlement,
leaving South Viet Nam free and
independent, will satisfy the
American people.
The 1960 Republican presiden-
tial nominee told a news confer-
ence that the inability of the Unit-
ed States to exert effective influ-
ence to end India-Pakistan fight-
ing "is a reflection on the foreign
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