Page Two

FHE MICHIGAN DAILY

Wednesday, October 9, 1974

Page Two VHE MICHIGAN DAILY Wednesday, October 9, 1974

ECONOMIC PLAN:

L ocal political Lyroiins rotest

GEO talks stymied

Ford proposes surtaxERIM's move to Ain Arbor

- 

(Contifnued from Pasge 1)
THE PRESIDENT'S program
also included proposals to in-
crease investment tax credits
for business, help the depressed
housing industry, boost food
production to bring prices down,
and voluntarily curb the use of
gasoline and other fuels.
"We must whip inflation now,"
the President told members of
the Senate and the House of
Representatives.
He called on Congress to take
the following steps:
-Impose the five per ;ent
surtax, to pay for job programs
for the poor and unemployed.
Under the plan a family of four
earning $20,000 would normally
have a regular tax of $4,380.
From that amount, $1,820-the
tax on the first $10,000-would
be subtracted eaving a balance
of $2,560, on which the surtax
would be $128. The estimated
yield from the surtax on cor-
porations and individuals would
be $4.7 billion.
-Increase t h e investment
credit tax from seven to 10 per
cent for business, and from four


to 10 per cent for utilities, to
encourage more productian. I
-Require new electric power
plants and converted plants to
use coal or nuclear energy in-
stead of oil and natural gas
where possible.
-Increase government sup-
port for mortgages by $3 billion,
enabling the depressed canstruc-
tion industry to build 100,000
more new homes. This-amount
would be in addition to the $19
billion made available by the

the President on his own au-
thority included:
-The cut of one million bar-
rels a day in the daily U.S.
consumption of 6,500,000 barrels
a day.
-Urged Americans to drive
less, buy smaller cars, reduce
home heating to 68 degrees
from the customary 72 degrees,
cut back lightsand usegcold
water instead of hot water for
their laundry.

(Continued from Page 1)
CHARGING ERIM's separa-
tion from the University as
"serving to remove its
(ERIM's) contracting from pub-
lic scrutiny" the anti-ERIM
griup viewed the possible move
as "an expansion of its activi-
ties and an intensification of
its relationship to the Univer-
sity of Michigan."
City council has given ERIM
an informal go-ahead on the
move which the institute re-
quested atlhough the approval
was not necessary..
Kathy Kozachenko (HRP-Sec-
and Ward), the only council
member to speak against the
relocation warned against a
possible loss in city revenues
due to ERIM's tax - exempt
status.

enue Service tax-exempt status Indochina P e a c e Campaign,
as well. New American Movement, Ann
If the Conductron site were Arbor and Ypsilanti Human
chosen and lost from *he tax Rights Party, Ann Arbor Sun
roll the city would lose about and the Young Socialist Al-
$10,000 a year with the Ann Ar-
bor School District losing about liance.
$35,000.

federal government in mort- -Asked the automobile in-
gage support in the past year- dustry to submit a five-year
-Provide supplementary un- plan for producing more effi-
employment assistance, in the cient cars, using less gasoline.
light of the additional 440,000
Americans thrown out of work t-Toldstate and local authori-
last month, increasing the total ties they must rigidly enforce
n u m b e r of unemployed to the 55 mph speed limit set by
5,300,000. Congress earlier this year,
-Pass legislation already re- which, he said, had saved at
quested to strengthen anti-trust least 250,000 barrels of gas a
laws to maintain vigorous busi- ay.
ness competition. j The President also stressedl
'Enact other legislation to the need for Congress to reduce
remove acreage restricti,)ns on appropriations and work with
rice, peanuts and cotton, to in- him towards eventually balanc-
crease food supplies. ing the budget and keeping this
The major actions taken by year's budget below $300 billion.

Council has expressed an in-
terest towards some payment in
lieu of taxes with Brown point-I
ing out that unless a suit was
brought against ERIM any pay-:
ment would be viewed as
charity.
Stressing that ERIM employs
a well-paid staff of 450 Brown'
said they should be considered
an asset to the county.
He expressed confidence the
County Commissioners would
approve the bonds "otherwise
ERIM could not meet the pay-
rolls" and his staff would lose,

(C o n tin u ed from P age 1)fa t r re p n ," h d G E }
negotiator Michele Hoyman said'
to the University request.
"You're asking us to wait two;
weeks on some demands that'
you've already had for two!
months," she said.
BUT THE University empha-
sized the need to deal with the'
total package and said they:
would provide a total response
within two weeks as they had
promised all along.
"We prefer to approach things
comprehensively so we can see
how things fit," University ne-
gotiator William Lemmer said.
"Now it's our turn and we're
going to do it our way. You're
going to get it all at once and
you're going to see it that way
so we can discuss it intel-
ligently," he said.

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ori" al certification elec ion
The GEC} claims that such a
definition would allow Lhe Uni-
versity to limit the size cf their
union by changing the title, but
not the responsibilities of a
position.
"We have no security in a
contract under these terms,"
GEO spokesman Dave Gordon
explained.
Governor
warns of
fund Cut
(Continued from Page 1)
Proposal C would eliminate

!I

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t

PRESENTLY ERIM pays no their jobs.
property tax on the University- The Ad Hoc Committee to
owned property at Willow Run Stop ERIM War Research in-
Airport and has Internal Rev- cludes representatives from thel

sales tax on all food and pre-
THE UNIVERSITY'S position scription drug items, and could
means that for the next two cost the state nearly $200 mil-
weeks, there will be no pro- lion annually in revenues.
posals to negotiate, and the ses-
sions will probably take on a MILLIKEN PREVIOUSLY
question and answer foramt as promised voters the state gov-
the University seeks clariifca- ernment will balance this year's
tion of certain demands. budget without a tax increase.
Coleman said any tuition-raise
The most difficult of those "wo'ld be, in effect, the kind
demands is likely to be a sub- of tuition increase" the governor
ject discussed at the very end wants to avoid.
of last.night's meeting-union Cwatsat ad.
memheshinColeman admitted, neverthe-


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The GEO claims that mem-
bership in their union is deter-
mined by the type of job a per-
son does. They say any gradu-
ate student working for the Uni-
versity in a teaching or research
role should be eligible for union
membership.
But the University claims that
this definition is broader ?ian
was granted by the unionization
vote, and includes people who;
were not allowed to vote in the
5% surtax
(Continued from Page 1)
However, Ford's request for
a one-year tax surcharge en
middle and upper-income tax-
payers met with widespread cp-
position.
S e na t e Republican Leader
Hugh Scott and Sen. Jacob,
Javits (R-N.Y.) said the $15,000:
family income level that would
trigger the 5 per cent s,rrax
was too low.
SENATE Democratic Whip,
Robert Byrd said the proposed
surtax would "soak the middle'
and working ;classes," while
Sen. Henry Jackson (D-Wash.)
said he could not support i, un-,
til loopholes in the existing taxj
structure are plugged.
Sen. Russell B. Long (D-La.),;
chairman of the Senate Finance'
Committee, said the 10 per cent
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less, that the governor's direc-
tive to Fleming was "not an
irrevocabfe decision. We're
awaiting word from the univer-
sities on how they plan to meet
the cuts, and these plans will
be subject to further review
and discussion."
Milliken stated in the letter
that Fleming "present a bud-
get plan in conformance with
this directive which you will de-
fend to me, the legislature and
the public."
criticized
investmnent credit recommended
by Ford undoubtedly would
stimllate business spending.
But he added that it is doubt-
ful Congress would enact such
a measure without giving addi-
tional tax relief to low-income
families.
The tax-drafting House Ways
and Means Committee will meet
today to hear Treasury officials
"snell out the details" of Ford's
slagestions, according to Rep.
Al Ullman, the panel's No. 2
Democrat.
ULLMAN SAID Ford seemed
"a bit unsure of his efforts to-
ward all-out economic policy,
but he did give us a fairly ade-
quate la"'dry list of problem
areas and some recommenda-
tions for solutions."
House B a n k i n g Chairman
Wright Patman (D-Tex.) said
Ford's message "lacked the
bold initiatives which are so
badly needed at this moment."
Ford "remains extremely cau-
tious in taking charge of mone-
tary policy," Patman said, and
until he "accepts responsibility
for monetary nolicy . . . there
is no real hope for meaningful
or lasting solutions toour very
serious economic troubles."

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Ann Arbor Civic Theatre.presents
A Musical Farce
based on "The Importance of Beinq Earnest" by Oscar Wilde
CGhe4t
Oct. 9-11,1974 Oct. 12; 1974
8:00 p.M. 7 & 10 p.m.
Lydia Mendelssohn Theatre
Tickets $3.50 and $4.50, available at the box office and
Liberty Music Shop
WHEN A HORNY BULL
FEELS DULL, HE BECOMES
A CRASHING BORE.

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