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. 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HURON across from AA News 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 Sg i t r BACK FROM CHINA: , f~ '. TT*! I 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 Al nyento 1ONE MORE CHANCE YUCNSILENROLL *During Mil nn ""r Ullman ig our annual Madness LLE ry presently )-5 % off idnight Sale rl it inn r j zr s 't t Am At 'I i I r r I IN C i 1 c.- r %ffvmin 1 L Tom=- .r ., i 16. 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