28, 1964
THE MICHIGAN DAILYPAGE
enate Finance Group
Approves Reductions
In
Taxation of Incom'e
U.S., Canada
End Meeting;
Sign Pacts
WASHINGTON (R) -President
Lyndon B. Johnson and Canada's
Prime Minister Lester B. Pearson
concluded a two-day meeting on a
harmonious note yesterday with
the signing of two pacts.
One agreement, signed in the
treaty room at the White House,
would carry forward the giant
project of harnessing the Colum-
bia River system in the Pacific
Northwest.
The other would make an in-
ternational park of the Campo-
bello Island summer home of for-
mer President Franklin D. Roose-
velt.
Pearson arrived Monday after-
noon for his first business meet-
ing with the new President.
Complete Formalities
Both men, in obvious good spir-
its, supervised a crowded noon-
time ceremony at which Secretary
of State Dean Rusk and Paul
Martin, Canada's foreign minis-
ter, signed notes to implement the1
1961 Columbia River Treaty.
Johnson said the river develop-
ment project will mean more in-
dustry 'and will "make a general'
contribution to the progress of the
Northwest and British Columbia."
In an aside to the United States'
and Canadian delegation present,
he added that if America and
Canada can agree on sharing'
power from the Columbia River'
they should be able to agree on
matters lime taxes and lumber. '
Lumbermen Irked;
United States lumbermen have
been perturbed over Canadian im-
ports, and each country dislikes;
taxes levied by the other which1
effect business across the boun-
dary.
Under the implementing agree-i
ment concluded yesterday, Canada,
is to get $318.8 million to finance,
upstream development of the riv-
er system which crosses the boun-
dary on its way to the Pacific.
Of this, $254.4 million would be
an advance lump sum from a;
non-profit corporation in the
United States Northwest to pur-
chase from Canada its share of
power to be developed downstreami
over the next 30 years.
The other $64.4 million would
be United States federal govern-+
ment funds for flood control 'ben-
efits America w o u 1 d receive
through Canadian reservoirs up-
stream.
04'
ALBERT GORE
DRIVE:
Clerk Opens
Voter :Rolls
To Negroes
HATTIESBURG, Miss. (A')-Ne-
groes launched a mass drive yes-
terday to get their names on voter
rolls in this south Mississippi city.
Theron Lynd, the first southern
voter registrar convicted of vio-
lating the Federal Civil Rights
Act, admitted the Negroes to his
office one at a time, handing each
an application and a pencil.
By noon, 16 Negroes had 'filled
out applications and taken the
tests-questions designed to show
whether the applicant is literate
and able to understand the Con-
stitution. They'll be notified of
success or failure within 30 days.
Outside in a light rain, sympa-
thetic pickets paraded with plac-
ards on the sidewalk in front of
the two-story red brick court
house.
One person was arrested late in
the morning, Robert Moses, an
official of the Student Non-Viol-
eht Coordinating Committee. Po-
lice said they ordered him to.
move on and he didn't do it.
Federal courts enjoined Lynd
some time ago against discrimin-
ating against Negro voter appli-
cants. The 5th United States Cir-
cuit Court of Appeals at New Or-
leans later said he violated the
injunction and convicted him of
both civil and criminal contempt.
Lynd, serving his third term as
circuit clerk-the job that carries
voter registrar duties with it-
says he's purged himself of the
civil contempt by registering 42
Negroes named by the court.
Seeks Speed
In Effecting
Rate Slashes
See 19 Per Cent Drop
In Taxes Due to Bill
WASHINGTON () - The Sen-
ate Finance Committee unani-
mously approved yesterday a $9
billion tax cut for the nation's
80 million individual taxpayers by
accepting the rate reductions vot-
ed by the House.
The committee also voted 16-0
to go along with President Lyndon
B. Johnson's proposal that the
full cut in withholding, to a 14
per cent rate, be put into effect a
week after the bill becomes law.
This reduction in wage and sal-
ary withholding from the pres-
ent 18 per cent rate will pour an
additional $800 million a -month
into the nation's economy as soon
as it becomes effective.
19 Per Cent Reduction
The tax cut, when it becomes
fully effective next year, will mean
an average reduction in tax due
of about 19 per cent for virtually
all United States individual tax-
payers.
The committee did not finish
with the big tax cut bill and its
decisions are subject to reconsid-
eration today or tomorrow.
Members said they doubted
strongly that any changes would
be made in the rate cuts.
However, Sen. Albert Gore (D-
Tenn), who was absent yesterday,
has said he will offer a $400 in-
crease in personal exemptions as
as substitute for the, rate cuts in
the bill.
Weekly Savings
The reduction in the withhold-
ing to 14 per cent will mean a
$2.80 a week saving for a four-
person family head earning $120 a
week.
Congressional experts disclosed
that the.$11.1-billion tax reduc-
tion bill passed by the House now
has grown to about $11.5 billion
because of changes made so far
by the Senate Finance Committee.
The House version was split $8.8
billion to individuals and $2.3 bil-
lion to corporations.
However, the total for individ-
uals now stands at $9 billion or
slightly more because many of the
changes made in the committee
benefit individuals.
The present individual rate
schedules running from 20-91 per
cent would be reduced to a 14-70
per cent range in 1965 under the
new schedules approved- by the
Senate group yesterday.
The tax cut would'amount to
30 per cent for a married couple
with only $1000 of taxable income
but it would drop to around 16 per
cent for most of those in the mid-
dIe income brackets.
The lowest income tax bracket
under present law, $2000 for in-
dividuals and $4000 for married
couples, would be split into four
segments under the bill. The en-
tire bracket now is taxed at 20
Tax Benefit
To Students
Voted Down
WASHINGTON (A) - The Sen-
ate Finance Committee rejected
Monday a proposal by Sen. Abra-
ham Ribicoff (D-Oonn) to give
tax relief for.college expenses.
The committee also voted down
three other changes offered by
Ribicoff that would have further
reduced revenue.
The amendments might have
forced a modification of the pro-
posed rate reductions the admin-
istration is counting on to spur
industrial growth. The college ex-
penses amendment alone would
have cut revenue $750 million the
first year and $1.3 billion after
three years.
But Ribicoff told newsmen he
will renew his fight on the Sen-
ate floor.
Floor Fight
"We will have a very interesting
time" there, he predicted.
The committee, apparently un-
der strong pressure from the ad-
ministration to push the bill along
rapidly, turned back other Ribi-
coff proposals designed to:
-Spur construction of air and
water pollution control facilities
by permitting builders to deduct
their entire cost in the current
year or spread over four addition-
al years. The plan, defeated 13-2,
would have cost the government
$200 million to $500 million in
annual revenue.
-Repeal the 10 per cent levy
on pens and mechanical pencils at
an annual revenue cost of $6 mil-
lion. It lost on a voice vote.
-Raise the limit on retirement
income credit for a married tax-
payer from the present $1,524 to
$2,286. Ribicoff said this would
have put retired persons who do
not have Social Security income
on a par with those who do. So-
cial Security benefits are not tax-
able and a wife gets a benefit
equal to half that of her husband.
Senate Passage
The administration victories
added some weight to a statement
by Sen. Hubert Humphrey (D-
Minn), the assistant Senate Dem-
ocratic leader, that he expects the
Senate to pass it before Feb. 12.
The Ribicoff amendment would
have permitted a taxpayer to sub-
tract from his tax due up to $325
of the annual costs of each child
attending college.
The credit would apply only to
costs of a tuition; books and sup-
plies under a sliding scale: 75 per
cent of the first $200 of expenses,
25 per cent of the next $300, and
10 per cent of the next $1000.
It would be reduced by 1 per
cent of the amount by which the
taxpayer's adjusted gross inconie
exceeds $25,000. Thus a taxpayer
at the $60,000 level would get no
benefit.
Ribicoff said the plan would
benefit middle income families
who, he asserted, are bearing "a
terrific burden" of college costs.
(Continued from Page 1)
jump of 9.7 per cent. The Univer-
sity is expecting a, fall increase of
5.4 per cent up to 26,191. State-
wide college and university enroll-
ment is expected to increase 8.5,
per cent to 111,938.
Recommendations f o r other
state colleges and universities in-
clude: $3.3 million, a 23 per cent
increase of this year, for Ferris
State College; $4.1 million, a 16.7
per cent increase, for Michigan
Seek Fund
Of Future
LANSING (R) - A "Michigan
future fund" is written into the
budget Gov. George Romney pro-
posed to the Legislature yester-
day.
He called it a $19 million "head
'start on next year's building"
when he explained the unique
statutory fund yesterday at a
press conference.
The budget also calls for a $5
million surplus.
"Actually, you could add the $19
million and the $5 million" to
show how much money Michigan
will be ahead if the budget meets
expectations," he said.
In the Black
"But the $5 million gives you a
black figure at the bottom of the
tally sheet," he told reporters, in-
dicating the surplus will serve to
make clear, especially to outside
industrialists, Michigan's fortu-
nate fiscal position.
As with budget itself, the Leg-
islature will have the final say
about the surplus and the future
fund.
If the fund, earmarked for cap-
ital outlay in the fields of edu-
cation, mental health public wel-
fare and general government, be-
comes law this year the Legisla-
ture still will have the last word
on it.
Full Power
The Legislature has full discre-
tion to spend from. the general
fund, where the $5 million sur-
plus will go.
It would take only one addi-
tional legislative step - de-ear-
marking-for the lawmakers to
authorize spending the $19 million
for other purposes.
"A year from now, there prob-
ably would be specific appropria-
tions from this future fund,"
Romney said.
Romney said this record overall
$622.4 million budget for the com-
ing fiscal year is not intended "to
set a spending pattern.
"Just because we increase
spending to this degree does not
mean that subsequent years will
see the same increase-we're do-
ing some catching up here," he
said.
Technological University; $4.1
million, a 20.8 per cent increase,
for Central Michigan University;
$4.8 million, a 28.4 per cent in-
crease, for Eastern Michigan Uni-
versity; $2.4 million, a 31.6 per
cent increase, for Northern Mich-
igan University; $7.7 million, a
29.7 per cent increase, for West-
ern Michigan University; and $1.1
million, a 96.5 per cent increase,
to finance the second year of op-
eration for Grand Valley State
College.
'Good Look'
Whether or not the University
gets the recommended appropria-
tions is up to the Legislature. Sen.
Frank D. Beadle (R-St. Clair),
chairman of the Senate Approp-
riations Committee, has said that
he will "take a good look to see
how Romney expects to have it
spent" before deciding if he will
support the appropriation.
Senate Majority Leader Stanley
G. Thayer (R-Ann Arbor) said
the request was satisfactory. But
Budget Items
LANSING (A-Major items in'
the 1964-65 budget submitted to-
day by Gov. George Romney to.
the Legislature:
Education: Romney asks $179.3
million for operations, capital out-
lay and benefits, excluding state
aid to schools. Educators had re-
quested $248 million and the cur-
rent appropriation is $147. In-
cluding school aid, the total asked
for education is $237.7 million, or
nearly 44 per cent of Michigan's
total expenditures.
Welfare: Romney asks $102.5
million overall, which is less than
agency requests totaling $111.3
million, but more than the cur-
rent $99.9 million appropriation. If
approved, this item would make up
16.5 per cent of the budget.
Mental health: Romney wants
Michigan to spend, $98.7 million,
or nearly 16 per cent of the total
budget, on capital outlay and
operations of mental hygiene
services. The request was $106.2
million and the current appropria-
tion is $82.3 million.
Public Health: Romney asks
$17.5 million, or an increase of
about $2 million. Agencies had re-
quested nearly $19.4 million be
spent for public health.
Safety and Defense: Romney
recommends $29 million be spent,
a slight increase over the current
appropriation but far short of the
$34.5 million requested by the
agencies.
Thayer added that "it is difficult
to say" whether the Legislature
will pass an appropriation this
large, though reaction of approp-
riations committee members was
"favorable."
VT C Seeks
Court Writ
LANSING (A') - The Vigilance
Tax Committee yesterday asked
the Michigan Supreme Court to
overrule the Board of State Can-
vassers and permit anti-city in-
come tax petitions to be submit-
ted to the Legislature.
In a petition for a writ of man-
damus, the committee of suburb-
an officials asked the court to
set a hearing on the issue Feb. 4.
The Board of State Canvassers
ruled Dec.'31 that petitions seek-
ing initiative legislation on city
income taxes were invalid because
some 53,000 signatures were pre-
maturely gathered.
The committee seeks to bar city
income taxes on non-residents
land to prevent any city income
levy being imposed without a prior
vote of the people.
The committee collected a to-
tal of 248,000 signatures on peti-
tions circulated in all 83 Michi-
gan counties.
According to law, some 221,000
signatures-or eight per cent of
the total vote cast for governor in
the last 1962 election -- were re-
quired.
The secretary of state's office
rejected the petitions, however,
under a ruling by Atty. Gen.
Frank Kelley that 53,000 of the
names were invalid because they
were collected prior to the 1962
election.
The Board of Canvassers fol-
lowed the attorney general's rul-
ing in making its own decision
that the petitions were not suf-
ficient to be submitted to the
Legislature.
The petition names Secretary of
State James Hare and the Board
of Canvassers as defendants, and
contends their action is "unrea-
sonable."
S. James Clarkson, mayor of
Southfield and attorney for the
VTC, contended iri his extensive
brief on the subject that rules
governing such things as initia-
tory petitions are established to
"protect against corrupt and frau-
dulent practices."
ole
I.
I
TOP EDUCATION BUDGET:
Romney Requests $44 Million
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DIAMOND NEEDLES
I:
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By The Associated Press
WASHINGTON-President Johnson will propose federal aid
for both public and parochial schools in depressed areas as part of
his "war on poverty," it was learned today.
* * * *
WE WILL PICK UP YOUR
PORTABLE, INSTALL A NEW
DIAMOND AND DELIVER
AT NO EXTRA CHARGE.
Ii**J
ALIENATION:
MAN'S SEARCH FOR SELF
The MUSIC CENTER, Inc.
304 S. Thayer
1304 S. University
Fri., Jan. 24
8:00 P.M.
ROME-Premier Aldo Moro's Christian
torn yesterday by a power struggle in the party
of former Premier Amintore Fan- "
fani, leader of the largest left-
wing group in the party, were de-I
manding a stronger, voice in top
party councils. I
Democrat Party was
directorship. Followers
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;
CAPE KENNEDY - America's
newest communications satellite,
Relay 2, successfully passed its
first series of communication tests
yesterday and space agency offi-
cials described its performance as
excellent.
The initial experiments were of
a technical and scientific nature-
transmission of voice reports, tele-
vision test patterns and radio sig-
nals-to check performance of the
satellite's equipment.
PIERRE,' S.D.-The Anti-Poll
Tax Amendment to the United
States Constitution goes before the
South Dakota senate today with
the unanimous approval of the
Senate State Affairs Committee."
The amendment would become
effective as soon as South Dakota
ratifies it. The South Dakota
House approved it 52-18 last Fri-
day, and the Senate is expected to
follow suit.
NEW YORK-Prices advanced
generally on the New York Stock
Exchange yesterday with the Dow
Jones 30 industrials up 4.87, 20
rails up .15, 15 utilities up .5 and
the 65 stocks up 1.22.
,
The fight against religion can be under-
stood as a serious and deep expression of
_human longing for wonderful freedom,
independence, dignity and real human
life."
-THE REV. MILAN OPOCENSKY,
Senior Lecturer of Systemic Theology
at Colnenius Faculty of Protestant
Theology, Czechoslovakia
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Milan Opocensky, currently in the
United States for a series of "East-
West Conversations" in college and
university centers, under the, sponsor-
ship of the National Student Christian
Federation, is also active in the work
of the Christian Peace Conference, an
international movement with' headquar-
ters in Prague. Mr. Opocensky will be
on the Michigan campus for on entire
day of lectures, dialogue and discus-
sion.
EAST-WEST CONVERSATIONS,
HERE,
12:00 p.m. 'Guild House,' 802 Monroe St.
Special Noon Luncheon Buffet,
25c
"MARXIST ATHEISM AND
CHRISTIAN FAITH"
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Twer level
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Sat., Jan. °25
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