THE MICHIGAN DAILY Rage Three
Friday, January 10, 1975
THE MICHIGAN DAILY
Merge Three
N. Viets
push into
Bong Son
SAIGON (WP)-Heavy fighting
broke out 300 miles northeast
of Saigon yesterday as South
Vietnamese forces sought to
block a North Vietnamese push
into the rice-rich Bong Son
coastal plain, field officers said.
The Viet Cong charged that
South Vietnamese planes bomb-
ed their headquarters at Loc
Ninh, 75 miles north of Saigon,
for the third straight day, caus-
ing heavy casualties and des-
troying hundreds of homes, the
town's market place, the Catho-
lic church and two pagodas.
Outside the South Vietnamese
capital, the Rev. Tran Huul
Thanh, leader of a largely Ro-
man Catholic anti-corruption
movement, told a rally that
President Nguyen Van Thieu
must be held responsible for the
loss of Phuoc Long Province
and called again for his ouster.
Phuoc Long fell Tuesday after
the Communists captured the
provincial capital of Phuoc
Binh, 75 miles north of Saigon.
Father Thanh said "more land
and province and district towns
will fall to the Communists as
long as this country is still
ruled by President Thieu and his
corrupt officials."
Asociated Press correspondent
Huynh Minh Trinh reported
from the district town of Bong
Son, once defended by American
forces, that field officers said
50 North Vietnamese troops
were killed in the latest fighting
for control of the coastal plain.
There was no immediate report
on South Vietnamese losses.
A Saigon military spokesman
claimed 500 North Vietnamese
troops had been killed since
government forces launched an
operation Jan. 1 that retook two
strategic hilltop positions about
six miles west of Bong Son. The
positions control access routes
to the plain itself and strategic
north Highway 1.
THE MICHIGAN DAILY
Volume LXXXV, No. 83
Friday, January 10, 1975
is edited and managed by students
at the University of Michigan. News
phone 764-0562. Second class postage
paid at Ann Arbor, Michigan 48106.
Published d a i 1 y Tuesday through
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Worsening economic
condition
tse taxes-
forces states to
increa
By The Associated Press
Residents of about a third of
the nation's 50 states face pos-
sible tax increases this year as
legislators and governors try to
balance budgets in an era when
revenues aren't keeping pace
with inflation.
An Associated Press survey
showed governors of New York,
Vermont, Michigan and Wash-
ington have announced specific
plans for raising taxes. Increas-
es are considered a possibility
in 10 states and have not been
ruled out in one state. Officials
in two other states are talking
about a tax realignment rather
than an increase.
THE SURVEY also showed
that there is talk of a tax cue
in eight states and that officials
in the remaining 25 states have
promised there will be no in-
crease in levies this year.
Aides to Michigan's Gov ernor
Milliken said he would propose
an increase in the state persanal
income tax, boosting the rate by
.7 per cent to 4.6 per cent andI
MILLIKEN campaigned aga:rst
repeal of the sales tax and had
warned the voters that extra re-
venues would have to be raised
to make up for any loss.
New York's Governor Hugh
Carey, a Democrat elected last
'November, proposed on Wednes-
day an increase in the s t a t e
gasoline tax from 8 to 13 cents.
He said the proposal would save
energy and could raise up to
$500 million to help close a bud-
get gap that he says may rur
up to $1 billion.
Vermont's Democratic Gover-
nor Thomas Salmon, beginning
his second two-yeard term, pro-
posed expanding tle state's 3
per cent sales tax to include
hard liquor, cigarettes, tobaco
and motor fuels. Beer, clothing
and groceries would remain
exempt from the tax.
SALMON said he expects state
revenues to drop $11 million by
next year and said the wider
sales tax - along with several
other revenue-raising proposals
-are needed to caise extra
money.
He also promised to cut the
state budget, saying he would
ask for $163 million for the up-
coming fiscal year - a $1 rnl-
lion decrease from the current
budget.
Washington's Governor Dan
Evans, a Republican in the mid-
dle of his third term, urged an
assortment of tax changes, in-
cluding removing the 4.5 per
cent sales tax from groceries
and raising it to 5.5 per cent on
all other taxable' items. Evans
estirrated the sales tax p 1 a n
would mean $52 million in new
revenue for the state.
The governor said the in-
creases were necessary to Dal-
ance the budget, but he also
said the removal of the sales
tax on groveries and the boost
on business tax "helps restore a
reasonable balance between the
taxes borne by citizens and
those borne by business."
Ullman to propose new tax cut
for low, middle income groups
S WAHTINGTON (P) -- Tax re-, Pressed for figures' Ullman -
j YL f1 71111V 171 V114 to ICIA 1G
netting an estimated $213 i net ror low ana miade incomes'
lion. will have top priority in an
The aides said most of t h e emergency measure aimed for
money would be used to replace House passage in March, Rep.
an estimated $200 million that Al Ullman (D-Ore.) said yes-
w.__ rcIaV
would only repeat an earlier
statement that $5 billion would
be too small a tax cut to be
effective and $30 billion too
large.
7
w
AP Photo
CAMBODIAN SOLDIERS help a wounded comrade near Phnom Baseth, Cambodia yesterday
following a battle between government troops and Khmer Rouge insurgents.
s
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BACK FROM CHINA:
, f~ '.
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Iiiansjieia opposes V1
WASHINGTON (A' - Senate vestigation of the CIA will be military action to protect oilk
Majority Leader Mike Mans- raised at the first conference of sources in the event of threat-g
field (D-Mont.) said yesterday Democratic senators in the new ened strangulation of the indus-
he opposes additional U.S. mili- Congress next Tuesday. trialized world, Mansfield saids
tary aid to South Vietnam and NOTING that the Senate he is "absolutely opposed."
the use of force under any cir- E dI that CmtheSenat "Confrontation is not the an-!
Armed Services Committee and{t
cumstances against oil produc- the Senate Foreign Relations swer," he said. That would be
ing nations. Committee are prepared to counterproductive."'
ON ANOTHER subject, he make separate inquiries, Mans- ASKED about additional aidt
told reporters there is no reason field said he would "hope there to assist South Vietnam in de-t
to anticipate any lack of coop- will not be too many commit- fense against North Vietnamese
eration betweenPresident Ford tees investigation the same attacks, Mansfield said it is "a
and the Congress on economic thing." fair assumption" that such a E
programs. Asked about Secretary of ; proposal would meet vigorous
Mansfield said the question of State Henry Kissinger's remarks! resistance in Congress.
procedure in Congressional in- leaving open the possibility of "Additional aid means more
will be lost in the fiscal year He said the package would
tarting July 1 because Michi- Ullman is in line to become probably include some corpor-
;an residents voted to repeal chairman of the tax-writing ate relief to stimulate business
he state sales tax on food and House Ways and Means Com- activity. A likely provision, he
rescription drugs. mittee, succeeding Rep. Wilbur said, would be expansion of the
--- - - - - Mills (D-Ark.). investment tax credit which now
Uallows businesses to subtract
ULLMAN told newsmen that from their taxes 7 per cent of
when Congress reconvenes next investment in equipment.
week he will ask the committee
to work immediately on a one- In another economic develop-
year bill aimed at alleviating ment, the nation's scheduled air-
what he called a desperate lines reported a combined net
economic situation. profit for 1974 of about $350
killing, more fighting, and that's Udmillion, the highest since 1967.
got to stop sometime," he said. Ullman declined to estimate iin h ihs ic 97
"It is upsto hosetme e sd closely the extent of the tax cut The Air Transport Association,
"It is up to those people to or to suggest what it might in releasing the figures, said
settle their differences them- mean to the average taxpayer, 1975, however, is unpredictable.
selves in their own way. And saying specifics still have to be
that includes Cambodia" worked out.
Emphasizing a one-year tax We are havin
Mansfield said he assumes cut plan, Ullman said the na-:
that President Ford will present tional budget deficit is growingd i
to Congress "a complete pack- at twice the rate of recent M *dg t
age" to bolster the nation's years, and may total $100 bil-
economy. lion over 2.5 years. S
SA
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