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 i i I I _.. .-- -_ 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 University Bookstore Why not Michigan? SGC Committee on the University Bookstore LENOY IMPORTS DISTINCTIVE GIFTS Mexican Handicraft Sweaters Pottery Woolen Goods Sara pes Giftis -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 Wai Q4 m41_ n f rA n. ma _ _s Ph .... WN Ia We now have a good supply of AIGNER . leather and linen, and leather purses. Start the fall right with the AIGNER look! JOHN B. iL ElY Phone NO 8-6779 ! 601 East Liberty .... HAPPY, HAPPY, HAPPINESS IS A CLEVER, CONTEMPORARY CARD from Cheate,' (oSelt4 Cards and Candies II-- 302 S. State 1203 S. University U, 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. !French Dressing' Kayser's Young Idea for sleep and study The tastiest way to indulge in a midnight snaci We dish up demure pin-tucking, garnish with scalloped Sce....ll on soft as silk Satilene nylon tricot. Lacquer red with beige lace. S, M sizes. A. Straight shift gown. s.oo 8. Knee-length pajamas. 9.00 C. Round collar robe. 10.00 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 'J t + y ;r . . {f !', I{ ' y ' B iT