JANUARY 21, 1964
THE MICHIGAN DAILY
JANUARY 21, 1964 THE MICHIGAN DAILY
[ohnson Links Tax Cut
With Prosperous 1964;
Warns of Price Jumps
}Report Cites
a Ri
Committee 'WHAT KIND OF WORLD?
I
FOR PROSPERITY-President Lyndon B. Johnson urged Con-
gress in his annual economic message to pass the late President
John F. Kennedy's tax cut program to boost the economy forward.
He pointed out that 1963's gains cannot continue unless the
measure is approved.
Johnson's Economic Report
Draws Reaction of Congress
WASHINGTON-A Senate Republican yesterday accused Presi-
dent Lyndon B Johnson of using fictitious and "terribly misleading"
figures in his economic report today.
However, a Democratic leader termed Johnson's message "a
clear and balanced statement," and said it points to new heights
of economic achievement this year.
In between those extremes was a wide range of congressional
reaction to the President's recital of an unparalleled three-year rise
"in income, profits and production,
and his forecast of prosperity
OBJECTORS: ahead if Congress acts promptly
r on the $11-billion tax cut bill.
Under Dentis
Excellent Settlements
Receive High Praise
WASHINGTON () - President
Lyndon B. Johnson predicted yes-
terday record-smashing prosperity
in 1964 if Congress acts-"not in
one or two or three months but
now"-on the $11-billion tax cut.
Without it, Johnson warned the
legislators,' "dashed expectation
could turn expansion into reces-
sion"
In his first economic report to
Congress, the President also cau-
tioned against inflationary price
rises.
'A series of specific price in-
creases in recent months-espe-
cially in manufactured goods-
gives me some cause for concern,"
he said.
No Spiral
However, Johnson doesn't anti-
cipate renewal of the wage-price
spiral.
He urged business and labor to
continue their "excellent" record
of price and cost settlements but
said he is setting up an "early
warning system" by government
agencies to guard against poten-
tially inflationary price and wage
increases.
"In the face of a 44 per cent
increase in corporate profits in less
than three years and the prospect
of further increases to come with
the tax cut, I see no warrant for
inflationary price rises," he de-
clared.
Claims"Big Strides
In the economic report to Con-
gress, required annually Johnson
pointed with pride at the big steps
the country made since 1961 under
Democratic administrations.
"Our record $100-billion expan-
sion since early 1961 has carried
us past important milestones in
the march toward a better life,"
he said.
For his "war on poverty," which
Johnson declared in his State of
the Union message, the President
said he would present details in
a later special message to Con-
gress.
Vetoes Cuts
In Tax Bill
WASHINGTON-The Lyndon B.
Johnson administration won major
victories today when the Senate
Finance Committee voted down to
tax bill amendments which would
have wiped out more than $800
million in revenues.I
Sen. Everett M. Dirksen (R-Ill)
lost efforts to:
Repeal the 10 per cent excise tax
on furs, cosmetics and luggage,
including wallets and handbags.
Defeated 10 to 7, this would have
cost an estimated $524 million a
year in revenues.
Retain Dividend
Retain the four per cent stock
dividend credit, eliminated in the
House, which would have cost $290
million in revenues. This was de-
feated nine to seven.
After the committee's after-
noon session, it was learned that
final votes on the $11 billion tax
cut bill probably won't come until
Thursday or Friday. Earlier, mem-
bers had hoped to finish work byj
Wednesday.
However, Sen. Albert Gore (D-
Tenn) said he had additional
amendments to present and had-
long-standing speaking engage-
ments in Tennessee tomorrow and
Wednesday that he could not can-
cel.
Not Finish
Because of this, Sen. Harry F.
Byrd (D-Va), Finance Chairman,
told reporters the committee def-
initely would not finish before
Thursday and possibly Friday.
Dirksen said he would try again
on the Senate floor to repeal the
excise tax. He predicted his
amendment has a good chance of
approval, but did not indicate
whether he would make a floor
fight to keep the stock dividend
credit.
By a 9-8 vote, the committee
accepted an amendment by Sen.
J. William Fulbright (D-Ark) to
repeal the admissions tax for the
live theater, including burlesque,
and for opera and concerts but not
for movies.
There was no immediately avail-
able estimate on the revenue in-
volved, but the Treasury opposed
eliminating excise taxes on a selec-
tive basis. The tax is 10 per cent
on tickets costing $1 or more.
The House, at the request of the
administration, voted to eliminate
the stock dividend credit of four
per cent, effective in 1965. At the
same time,. the House voted to in-
crease the flat per-person exemp-
tion from $50 to $100.
Under present tax laws, an in-
dividual can deduct from his tax-
able income the first $50 of stock
dividends, then substract from the
base a per cent of the remainder
of his dividend income over $50.
WASHINGTON -- The Federal
Trade Commission proposed yes-
terday stringent curbs on cigarette
advertising.
The commission issued a set of
proposed rules that would do the
following things:
Require every cigarette adver-
tisement, package and carton to
contain a clear warning that cig-
ROBERT F. KENNEDY
FTC Proposes Curbs On Cigarette Ads
arette smoking is
health.
Urges Peace
In Malaysia
KUALA LUMPUR, Malaysia -
Atty. Gen.. Robert F. Kennedy
headed for Kuala Lumpur yester-
day to press his Malaysian crisis
peacemaking efforts.
There were signs that summit
talks he is now urging may soon
materialize.
The presidential troubleshooter
planned to meet with Malaysian
Prime Minister Tunku (Prince)
Abdul Rahman last night. Kenne-
dy was to brief Rahman, as he
did President Diosdado Macapagal
in the Philippine capital, on re-
sults of his conferences in Tokyo
last week with President Sukarno
of Indonesia, Malaysia's hostile
neighbor.
The Attorney General's mission
is to try to get Sukarno, Macapa-
gal and Rahman together for a
conference aimed at settling their
dispute, which President Johnson
views as a major threat to stabil-
ity in Southeast Asia.
Sukarno has denounced the new
Malaysian Federation of Malaya,
Singapore and the Borneo States
of Sabah and Sarawak as a con-
tinuation of British colonialism
and has vowed to crush it. The
Philippines' refusal to recognize
Malaysia is based on its disputed
claim to Sabah.
Doesn't Promote Health
Prohibit any statement or im-
plication in any cigarette adver-
tisement that smoking promotesI
good health or physical well-being.
Prevent any advertisement as-
serting that one brand of ciga-
rettes is less harmful to health
than another, unless the advertiser
has substantiated that claim in
advance.
The trade agency also indicated
that top health officers would
meet next week to decide what
ought to be done to discourage
smoking among the 2.7 million
men and women in the armed
forces.
Won't Bar It
The department indicated that
it had no plan to bar smoking.
However, policies such as the re-
fusal to accept free cigarettes for
distribution on military bases may
be adopted.
The commission, in addition, in-
dicated that it might take further
steps "intended especially to pro-
tect the youth of the nation"
against unfair or deceptive ciga-
rette advertising. It invited sug-
gestions from the public as to how
this could best be done.
The commission's action came in
a set of Trade Regulation Rules
governing cigarette advertising.
The rules were issued under the
commission's statutory authority
to protect consumers against un-
fair or deceptive advertising.
Comments
Comments on the proposed rules
from any interested person were
invited and must be filed, in writ-
ing, with the commission by
March 2. The commission has
scheduled public hearings begin-
ning March 16. The rules will not
go into effect until some time after
Glenn Loses
Endorsement
COLUMBUS-Ohio's influential
Democratic Chairmen's organiza-
tion voted 81-63 yesterday to stand
by an earlier endorsement of Sen.
Stephen M. Young for renomina-
tion.
The organization acted at its
second caucus on a motion by
Columbiana County Chairman
Don Gosney to reconsider its sup-
port of Young in favor of Lt. Col.
John H. Glenn Jr., the astronaut,
who announced his candidacy for
Senator only last Friday.
Ninth
Midwest Student Tour
June 26 -Sept. 5
led by Prof. G. G. Hatheway
Purdue University
17 countries including 12 cities
behind the Iron Curtain.
IRVINE'S TRAVEL SERVICE
127 Northwestern Avenue
Lafayette, Indiana
Please send me more details and
information. Thank you.
Name
Address-
dangerous toI
court RulesI
On, Criteria
NEW YORK (M) - The United
States Court of Appeals unanim-
ously declared unconstitutional
yesterday a section of the Selec-
tice Service Act requiring that a
conscientious objectorbelieve in a
supreme being to obtain defer-
ment.
A conscientious objector, Daniel
Andrew Seeger, was convicted and
given a year and a day jail sen-
tence in May 1963, based his ob-
jection to military service on per-
sonal principles without claiming
affiliation to any particular re-
ligion.
"We feel compelled to recognize
that a requirement of belief in a
supreme being, no matter how
broadly defined, cannot embrace
all those faiths which can validly
claim to be called 'religious.'"
The court then said: "It has
been noted that, among other well
established sects, Budhism, Tao-
ism, Ethical Culture and Secular
Humanism, do not teach a belief
in the existence of a supreme be-
ing.
Republicans like Sen. John
Sherman Cooper (R-Kentucky)
said success of the President's pro-
federal spending, mainly in de-
grap will depend on reductions in
fense costs.
Sen. George D. Aiken (R-Vt)
said Johnson "is going to get the
cooperation of Congress in getting
the fullest value out of each dollar
spent," and added: "I hope he
doesn't recommend cuts in the
budget where he knows Congress
will restore them."
Many legislators shared John-
son's view that fast action on the
tax bill is of overriding import-
ance, but there were some dissents.
Sen. William Proxmire (D-Wis)
said in a Senate speech that "the
timing of the tax cut could not
be worse." .
Contending that Johnson's re-
port on economic growth is clear
evidence that taxes should not
be reduced now, Proxmire said, "if
we can't balance our budget now,
we will never balance it." He said,
however, there is no hope of de-
feating the bill.
Another Democrat, Sen. Albert
Gore (Tenn), said that what the
economy needs is consumer de-
mand and "The tax bill fails badly
in this respect."
4:10 p.m.., Angell Hall, Aud. 'A'
WORLD NEWS ROUNDUP:
Psychologist Claims Ruby Ill
Friday, January 24:
"The Playboy and the Christian"
Dr. William Hamilton
4:10 p.m., Angell Hall, Aud. AN
Sponsored by the University of Michigan
Office of Religious Affairs
By The Associated Press
DALLAS-A Yale psychologist
said yesterday he believes Jack
Ruby has a brain disorder that
can cause an explosive mental
state under emotional stimulation.
Prof. Roy Schafer testified he
believes Ruby has a disorder called
psychomotor epilepsy which brings
on attacks characterized by an
"explosive mental state" under
"strong emotional stimuli."
* * .*
BRUSSELS-Tunisia will seek
aid from the European Economic
Community (EEC) in talks open-
ing here Feb. 22, a spokesman for
the European Commission said
yesterday. Tunisia has received
substantial U.S. aid for the first
five years of its 10-year plan.
* *~ *
WASHINGTON - The United
States has told France it considers
President Charles de Gaulle's in-
tention to recognize Red -China
unwise. A government-to-govern-
ment note to this effect was sent
to Paris last weekend.
* * *
NEW YORK CITY-The Board
of Education directed the Superin.
r
tendent of Schools yesterday to
establish joint school zones "wher-
ever possible throughout the city"
to achieve better integration.
Under this plan, two schools
with different ethnic compositions
are "paired" for integration pur-
poses. All pupils in an area attend
one school for perhaps the first
three grades and the other school
for the three upper grades.
* * *
PHNOM PENH, Cambodia-An
anti-American demonstration was
staged yesterday in the vicinity
of the United States embassy in
Phnom Penh. The noisy demon-
strators shouted anti-American
slogans and deployed down Boule-
vard Norodom near the embassy.
They charged Americans support-
ed Khmer Serei. (Free Cambodi-
ans).
NEW YORK-Stocks traded on
the New York Stock Exchange
were irregularly higher yesterday
in moderate trading. The Dow-
Jones average lists 30 industrials
down 2.66, 20 rails down .48, 15
utilities down .36 and 65 stocks
down .82.
/c.;
L
I
Working at a resort in Germany.
WORK
IN EUROPE
Every registered student can
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