"We-All from Down in the Deep West, Su-" &1e 13idiigau IkiLg Seventieth Year EDITED AND MANAGED BY STUDENTS OF THE UNIVERSITY OF MICHIGAN UNDER AUTHORITY OF BOARD IN CONTROL OF STUDENT PUBLICATIONS STUDENT PUBLICATIONS BLDG. * ANN ARBOR, MICH. * Phone NO 2-3241 "When Opinions Are Free Truth Will Prevail" Editorials printed in The Michigan Daily express the individual opinions of staff writers or the editors. This must be noted in all reprints. THURSDAY, FEBRUARY 11, 1960 NIGHT EDITOR: NAN MARKEL Sales Tax Inerease Would Squeeze the Poor THE PATHETIC record of our state legisla- 4,000 dollars would pay no more than a token ture notwithstanding, everyone now seems amount in taxes. The family with an income to agree that the state of Michigan really between 5,000 and 10,000 dollars would pay ought to consistently raise money to support approximately the same amount as under the its schools and hospitals and to pay its credi- sales tax scheme. tors. Moreover, not even the most optimistic The truly heavy taxation, under the gradu- mathematicians really believe that the present ated income tax plan would fall upon those 50 million dollar nuisance tax package will people with incomes in the clouds. A personal actually suffice to pay 100 million dollars in income of 400,000 dollars might be taxed as bills. much as eight per cent by the state, which So ultimately the State must either increase incidentally leaves well over 320,000 dollars. the sales tax limit, pass an income tax, or wait The amount is still enough to support such a until archaeologists uncover the Neanderthal family's basic requirements ninety-two times man's "Treatise on Painless Taxation in a over. The biggest bonus in the income tax pro- Nuts and Berries Economy." Judging by its past posals is reserved for the aged, the sick and record the state may well decide to wait. But if th eunemployed, who would be completely it should decide to fulfill its constitutional re- exempt. sponsibility to raise revenue it will have to It is interesting to note that when the place the burden of taxes somewhere. The only question is phrased in terms of who will bear realistic question left is that of determining the tax burden that none of Senator Beadle's who will pay and how much. concerns about the breadth of the tax base or the industrial climate in the state really alter IF SUSTENANCE for a family in Michigan the basic picture. A graduated income tax ex- requires about 4,000 dollars per year, then it acts a considerable amount of revenue from follows that any sizeable tax burden on a fam- families with high incomes. A sales tax on fly aearning only 4,000 dollars per year will be essential goods, on the other hand, squeezes a source of genuine hardship. A four per cent the poor farther into poverty. sales tax encompassing such essentials as food and' drugs would cost such a family 160 dollars, SEVERAL non-partisan economists have ad- about the price of a two-month food supply. vised that a graduated income tax is not (Better not count the months with a Christmas only the fairest path but also financially the or Thanksgiving dinner.) soundest method for raising state revenue. A four per cent sales tax will prove slightly Despite this advice, the income tax lags far more costly to the family with an income of behind the four per cent sales tax both in 40,000 or 400,000 dollars since these families popularity and in chances for enactment. doubtless purchase more goods. But it is hard The more obvious reason for this state of to imagine an amount in excess of 1,000 going affairs is that the rich are not always char- into the state coffers from any family, regard- itable and the poor are too weak in their less of its wealth or the lavishness of its household arithmetic to know where their own spending habits. A sales tax of four per cent is interests lie. The less obvious but more im- little hardship to this fortunate group. portant reason is that people who are otherwise There is yet another group of people whose well meaning enough too often cut their contribution to the state treasury via a four charitable spirit short of the point of sharing per cent sales tax route should be examined, their ideas with the state Legislature. These are the people obliged to live on small If every person who agrees that the state and inadequate pensions or on no income at must support its schools and hospitals without all. These aged, sick, and unemployed will also squeezing the poor would sneeze simultaneously contribute their pennies to the tune of around the warm gale would carry the Ebeneezer 160 dollars per year to the state treasury-if Scrooges of the Senate Taxation Committee to they can. For some of these families this will a more charitable position. But no such storm mean 160 dollars in unpaid bills, For many seems to be brewing. others it will be the difference between frugal, What is in the air is a referendum on the hard-up existence and the degradation of un- change in the state Constitution which would disputed poverty. make a sales tax of four per cent legal. More likely than not the people will choose to inflict SEVERAL ALTERNATIVE proposals for a the sales tax increase upon themselves. One graduated income tax have been smothered awaits the slogans which will be used to sweep by the state Legislature. The proposals differ in in the sales tax increase with mixed feelings detail but are in basic agreement as to how of bewilderment and revusion. One can be cer- the tax burden should be distributed, tain that the slogans will make no mention of Under a graduated income tax plan, a family squeezing the poor. earning the minimum subsistenance salary of -MARC PILISUK TODAY AND TOMORROW Defeatism f .< By WALTER LIPPMANN\ ,, :, .a ' e"r rf pfli /"IL - - -R STATE TREASURER BROWN: Republicans Responsible For Financial Problems By PHILIP SHERMAN Special to The Daily LANSING - Judging from the size of the state treasury at various times in the past two years, one might expect State Treasurer San- ford A. Brown to have a "lean and hungry look." Brown does not have one, though he would assert it is no fault of the Republican members of the Legislature. Brown charges them with responsibility for many of the, state's fiscal difficulties. One of his proofs texts is taken from an October newsletter by a New York municipal bond brokerage house. Brown's: 00 oeI ADAM POWELL: McCarthy Reincarnated By JAMES SEDER Daily Guest Writer ADAM Clayton Powell is a curi- ous congressman. Powell, a Harlem Negro, has ex- hibited somewhat bizarre behavior in the past. Although a Northern big-city Democrat and a self-styled leader of a minority group, Powell op- poses federal aid to education. Powell has a notoriously bad absentee record in Congress. His voting record, to put it mild- ly, is inconsistent and somewhat confusing. He is under indictment for in- come tax irregularities. But recently Powell's behavior has become more consistent: he has adopted McCarthyism. George Meany, president of the American Federation of Labor and Congress of Industrial Organiza- tions, recently charged that Powell had organized a "campaign to stir up race hatred." The charge has much merit. ALTHOUGH it is true that min- ority group leaders don't usually fight to upset inter-group rela- tions, Powell, who is certainly not "usual," seems to be doing just that. First came the Hulan Jack inci- dent. Jack, a Negro, is the Man- hattan Borough president. He was accused of bribe-taking. Whether or not Jack is guilty, the fact that he was indicted by a grand jury seems to indicate that the charge was at least reasonable. Jack was a Tammany Hall poli- tician; Powell is strongly anti- Tammany. In the past Powell had been a strong critic of Jack. But Jack was accused, Powell rushed to his defense. As the New York Times pointe out, Jack's race would seem t have little relevance to the ques tion of whether he took a brib Powell apparently disagreed. Then Powell took on the Nei York police department and Polic Commissioner Stephen Kennedy Powell claimed that the Polic were arresting Negro numbei racket brokers in Harlem, bu leaving the Italian brokers alon this was a clear case of discrim nation. Powell had a typical M Carthyist answer to Kennedy reasonable request to have th names of any brokers so he cou arrest them. Powell informed th Commissioner that he didn't haN the names yet, but he would fin the names of some of the Italia brokers and read them off in Coi gress. S * * IN EXCELLENT McCarthyi form, Powell rose to the floor( the House and, under the cov of Congressional immunity, rea off a list of Italians who "may be brokers. But apparently this bit of demo gogy was not enough, New Yor he declared, must have a Negi deputy police commissioner. Key nedy replied that his officers a: promoted on the basis of abilit not because of their race, religio or ethnic background. This would seem like a reasor able statement which a minori group leader would gladly endors But Powell is not a reasonab man. Powell wants a Negro deput commissioner. Kennedy insists the no man will be given advantageot consideration because of his rac Therefore, Powell has conclude Kennedy should be replaced. SURELY this grotesque mim d o s- e. w ce Y. ce rs ut e: I- c- 's he Id he ve in n- st of er nrU of McCarthy has gone far enough. It is difficult to prevent Powell from misusing his Congressional Immunity, but he should not be able to use the color of his skin as additional immunity. There are obvious political dan- gers in attacking a Negro leader, particularly for a liberal. This is, however, no excuse for other re- sponsible liberal leaders, not join- ing labor-leader Meany in his courageous attack on Powell - a Negro McCarthy is every bit as despicable as a white one. INTERPRETING: France's By J M. ROBERTS Associated Press News Analyst own copy was underlined in red pencil, and he has had copies re- produced to circulate. "THE WAYNE County Water Bonds which were very short," the letter reads, "received the usual Michigan bids. The prices seemed incredible if it were not that Wayne County is in Michigan." "It is almost 75 per cent .cold proving that many people are wiling to look beyond squabbling politicians to buy bonds of thriv- ing communities at depressed prices. "We are amused and perhaps we should be sad to see the num- ber of institutions which specify no Micigans on their lists. "Being on the other side of the desk forces us to accept the prin- ciple that the customer is always right, but we reserve the right (privately) to charge it to lazy thinking." MICHIGAN BONDS, B r o w n said, have been "badly hurt" by present state conditions, especial- ly since the state must compete in the money market with business' and the federal government. "The legislature thinks it has done a great service for Michi- gan," Brown continued.. "When men make obligations and refuse responsibility for them, how do you expect responsible people to loolk favorably on obli- gations we say we will meet? It is financial irresponsibility by people in responsible positions. "The whole problem derives from an attempt to pay recurring debts with non-recurring revenue" rather than with sufficient recur- ring taxes. * * * ONE EXAMPLE, Brown said, was the auctioning two years ago of the state's $20 million whiskey supply. Seven million was taken from the hospital bond and re- demption fund, more money from the veteran's bonus funds. "And finally the Veteran's Trust Fund of $50 million when we could only sell it for $40 million. The entire situation "tends to make financial people question the good faith of the people in con- trol of revenue raising," that is, the Republicans. * * * "WHAT IS needed is an indi- cation we are financially respon- sible people and that when we owe money we will attempt to pay. "We just can do what we've been doing in finance. The people who give loans are giving other people's money." Shifting his aim a little, Brown turned to Republican charges Democratic taxes would drive business from the state. 'If I had dragged the good name of the state . through the mire for two years, calling for business relief, I would have giv- en it." (About half of the new state tax package falls on busi- ness.) * * * BROWN also argued for an in- come tax. "Look at the Conlin Commit- tee which studied tax problems for 18 months. To a man it said the adequate and equitable tax the state needs should be an in- come tax. This is my thinking on this. "I am +convinced before we are over the financial hurdles, we will have an income tax. How far away, I don't know, but I'm posi- tive when financial stability is at- tained it will be with an income tax. Only people pay taxes; busi- nesses and corporations collect it, but only people pay it." , * * WHETHER the state will "keep current" to use Brown's phrase or whether it will fall further in the hole by June is a moot point. The Republicans apparently think the state will make it with- out further deficit damage; and it must be pointed out Gov. G. Mennen Williams waited for quite a while before acknowledging any possible "growth factor" in this year's revenue. Brown probably should be taken, at his word, though actually it probably does not make much dif- ference. The financial damage has already been done. Michigan is prosperous enough to erase an extra few millions in debt, if necessary. The question of blame, however, does not seem to be as black-and- white as Brown seems to think. The Republicans did push through the use tax increase (declared un- constitutional) which would have added considerably to the state's inn.v, AT HIS PRESS conference last week the President replied to his critics who are saying that we are behind the Soviet Union. At the end, in response to a question by Edward P. Morgan, he went beyond the technical argu- ment about the missile gap and deterrent power to his own philosophical attitude towards the rivalry of the two strongest world powers, the Soviet Union and ourselves. Mr. Eisenhower's philosophy, if I have under- stood correctly his impromptu remarks, is that our security is not in jeopardy and that if the Soviet Union is moving faster than we are in the development of certain elements of national power, that is to be expected and must be accepted. For, said Mr. Eisenhower, "let's re- member that dictatorships have been very effi- cient." If we must achieve a "greater tempo" in our development of national power, we shall have to "take our country and make it an armed camp and regiment it .. ..and get people steamed up like you did in wars." After that explanation of why we have fallen behind, Mr. Eisenhower delivered 'a little lec- ture on how we should think and talk more about the "values . . . which we do believe"- namely "our own individual freedoms and rights." He went on to say that "our people ought to have greater faith in their own sys- tem." By this he seemed to mean that the critics who think our defenses are inadequate and the critics who say that we are neglecting our children and not keeping up with the needs of our population, have less faith than he has in our "system." WITH ALL DUE respect, Mr. Eisenhower is mistaken. It is he who lacks faith in our system. It is he who is saying that we cannot meet the Soviet challenge without changing our system and giving up our freedom. It is he who is telling the country that it cannot afford to meet the needs of our rapidly growing and increasingly urbanized population. It is he who is saying that with a 500 billion-dollar economy, the American nation will lose its SANFORD A. BROWN .. attacks Republicans and durable enough to keep up the pace in the great contest of national power. Again with all due respect, he has sunk into, he has resigned himself to, an attitude of defeatism in which there is no faith that our people have the will ,the energy, the resource- fulness, and the capacity to close ranks, if they are summoned to make a greater effort. Mr. Eisenhower is talking like a tired old man who has lost touch with the springs of our national vitality, THE DOCTRINE which the President holds, the doctrine which determines his budget, his program, and his preaching to the nation is, in the perspective of the world struggle, a most dangerous doctrine. The central issue of the world struggle is whether the Soviet system or a liberal system can deal best with the problems that beset mankind. In that struggle we shall surely lose if we tell the world that, though we have the richest economy in all history, our liberal system is such that we can- not afford a sure defense and adequate provi- sion for the civil needs of our people. If that doctrine goes out into the world, unchallenged and unrefuted here at home, Mr. K. will have the ball which we will have fumbled. We can talk to the end of time about how we love liberty. But if the masses of man- kind understand us to mean that we love liberty in such a way that we cannot keep our place in the world, they will look for guidance and for example to Moscow and not to Wash- ington, Yet the President's defeatism has no objec- tive justification. The virtues of our system of society are not inseparably tied up with the Revenue Act of 1954 or with a philosophy of government which, when the President explains it, regards the Federal government as at best a necessary evil. THE FEDERAL government is no doubt wasteful, and clumsy, and inflated with bu- reaucracy, and not wholly immune to the pay- To Thine Own Self Be True e" WHEN FRANCE joins the atom- ic club, as she is expected to a- do almost momentarily, she will k, set off numerous political ripples. ro From a strictly military stand- n- point, United States military men re would have been just as happy y, two years ago, when France was n considering whether to go ahead, if she had decided to forego bomb n- development. They wanted her to ty provide a base but let the United e. States and Britain handle that le part of the defense of Europe. It ty would have made planning easier at not to have too many cooks us around the stove. e. * * * NOW, HOWEVER, there has developed at least some feeling at the Pentagon, disturbed over ic France's refusal to play host to American atomic arms, that any- thing which tends to offset France's inferibrity complex may make things easier in the long run. Diplomatically, the principle ef- fect of any enhancement of France's military potential is to give de Gaulle a closer approach to parity not only in negotiations with Soviet Russia, but with his allies, a point on which he has been extremely sensitive. And this spring, when Khrush- chev rattles his rockets in Paris, de Gaulle can say, "Well, you may notice we're coming along, too." * * * A SUCCESSFUL French test, even if the weapon produced is not a very modern one, will have its ramifications in several fields --the test ban negotiations at Ge- neva; the question of atomic arms for Germany and the resultant East German demand on Russia for the same thing; the new dis- armament conference, and the summit talks of both subjects. Soviet Russia has a great habit of trying to balance Western ac- tions and developments - creat- ing East Germany for West Ger- many, the Warsaw Pact for NATO, and demanding such things as numerical parity for the Communists in the Unite( Na- tions and at various negotiations tables. She will try to do the same in this case, but it is doubtful DAILY OFFICIAL BULLETIN (Continued from Page 2) Living, Soc, Stud./Gym, Office Ma- chines/Office Practice; Jr HS Eng./Soc. Stu~d., Math, Math/S., Science, Girls PE, Ind. Arts; Elem. Spec. Training, Elem. Speech Therapist, Elem. Intr. Music, Elem. Vocal Mus.; Audio Visual Consultant. Fri., Feb. 19: Whittier, Calif. (South Whittier School) - Kind.-6, 7 and 8th grades, Mentally Retarded, Blind. Sun., Feb. 21: viHillsborough, Calif. - Will be inter- viewing at the' Conrad Hilton Hotel in Chicago for Kind.-8th grades, Girls PE, and Instr. Music. Contact him for an appointment. For any additional information and appointments contact the Bureau of Appointments. 3528 Admin. Bldg., NO 3-1511, Ext. 489. Personnel Interviews: organizations, companies and gov- ernment, will be visiting our office for the purpose of procuring graduating seniors for employment. It is not neces- sary to complete our packet of forms to interview, but we will require that you complete our College Interview Form, so the interviewer can have ap- plication information on his appoint- ment. If you are interested in an ap- pointment either call or come into the office at 401 Admin. Bldg. Mon., Feb. 15: General Foods Corp., White Plains, N.Y. Location of work: General Foods Research Center - Tarrytown, N.Y.;' Maxwell House Div. Lab., Hboken, N.J.; Post Cereals Div. - Battle Creek, Mich. Sales Offices located throughout the U.s. Graduates: June, Aug., Feb. Men with a degree in Liberal Arts or Business Administration for Market- ing Program. The trainee will begin by selling food products to the grocery trade under the supervision of a Terri- tory Manager. At the end of the retail selling experience one will have a chance to choose between Sales Man- agement or Product Management. Ad- ditional information is available in their litefature. Kemper Insurance, Chicago,rl, Lo- cation of work: Chicago, Il. Graduates: June, Aug. Feb. Kemper is made up of five companies managed by J. S. Kemp. er - Lumbermen's Mutual Casualty Co. (largest fire and casualty insurance co.) American Motorists Insurance Co., American Manufacturers Mutual In- surance Co., Federal Mutual Insurance Co.,, and Fidelity Life Assoc (Mutual Legal Reserve Co). Men with degrees in Economics, Political Science. Sociology, History, or Mathematics for Training Program. They do not offer positions in directsales. Positions available through. the program are: Underwriting, Claim Adjusting, Accounting, Statistics, Safe- ty Engineering, Auditing and Special Agents. The program consits of full- time schooling in addition to depart- mental training. Women with a degree in Liberal Arts or Mathematics for Sec- retarial Positions or Statistical work. Tues., Feb. 16 The Procter & Gamble Co., Market Research Dept., Cincinnati, Ohio. Lo- cation of work: After 8 weeks of formal training in Cincinnati, travel all over U.S. Graduates: June, Aug. Feb. Wo- men with a degree in Liberal Arts or, Business Administration for Marketing Research Program. Women should be single 21-26 years old, driver's licens and experience in driving, attractive appearance and personality, interest in work and a sense of responsibility, emotional stability, and perfect health. The Market Research Program employs young women to travel throughout the U.S. conducting consumer surveys. They secure information about what the consumers think of the company's products and advertising methodsaThe girls spend eight weeks in Cincinnati learning about the company and pro- cedures and then are sent into the field not assigned to any particular part of the country but covering the whole country working from two to eight weeks in each wcityWhen traveling they receive an expense account including train fares, hotel bills, tips, car rentals, and food and laundry allowances. Merrill Lynch, Pierce, Fenner & Smith, Inc., New York, N.Y. Location of work: Home Office - New York City; Principal cities in U.S. Graduates: June. Merrill Lynch is country's big- gest brokerage company dealing in all kinds of stocks, bonds and ommodt " futures, and also act as investment bankers, underwriting and distribu ing new security issues for companies seeking capital. 1) Men with a degree in Liberal Arts or Business Adminis- tration for Junior Executive Program. 2) Men with a degree in Liberal Arts or Business Administration for Com- modities Training Program. 3)' Men, 27-35, with some business experience or extended military service or a com- bination of the two, for Sales Train- ing Program.The program cosists of three phases: 1) On the job training in a sales office, 2) Home office training, 3) Assigned to a sales office fo one I 4 I 4 ;: