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May 18, 1978 - Image 12

Resource type:
Michigan Daily, 1978-05-18

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Page 12-Thursday, May 18, 1978-The Michigan Daily
Social Security tax cut
WASHINGTON (AP) - The House much as $123 a year the taxes paid by
Ways and Means Committee reversed higher-income workers and their em-
itself yesterday and stifled an election- ployers.
year effort to roll back Social Security Every covered worker and his or her
taxes for 106 million workers and their employer would have benefitted from
employers, the rollback. The $14.5 billion cost of the
"I have decided that I cannot live two-year reduction would have been
with a vote" to undo the tax increases paid out of income tax revenues.
enacted last December, said Rep. Al The tax increase was voted last
Ullman, (D-Ore.), chairman. His December in an effort to rescue Social
position, and the committee's turn- Security from bankruptcy, which.ex-
about, defies a mandate from the House perts say would have hit part of the
Democratic Caucus, which last month system as early as 1979.
instructed the panel to write a tax-cut Although the increases have not yet
bill, gone into effect, many members of
Ullman had cast the tie-breaker last Congress began feeling pressure from
week when the committee voted 19-18 voters, who were surprised by a
for a rollback. He and four other mem- smaller increase, enacted in 1972, that
bers switched their positions yesterday, went into effect this year.
resulting in a 21-16 vote against a reduc- Ways and Means rejected a number
tion. of proposals for reducing Social
Ullman said that vote probably set- Security taxes before settling last week
tied the question for the year. That on the two-year plan. The ideal of the
would mean higher Social Security proposal was to reduce the tax burden
taxes starting next Jan. 1. temporarily to give Congress time to
But Rep. Fortney Stark, (D-Calif.), come up with a long-term solution.
indicated an effort will be made to write One factor in the committee's about-
a Social Security tax cut in the House face yesterday was the fact that
Rules Committee and on the House Congress traditionally has considered
floor. "Power politics is the only way Social Security as an insurance
this bill can be stopped at this point," program, under which each worker's
stark said. future benefits have some relation to

stifled by committee
how much that worKer paid in Social Ullman and Reps. Ken Holland, (D-
Security taxes. Use income taxes to pay S.C.), William Frenzel, (R-Minn.), and
for a part of Social Security, the L.A. Bafalis, (R-Fla.), switched from
argument goes, and the huge system support of the rollback last week to op-
will be turned into another welfare position yesterday. Rep. John Duncan,
program, in which benefits are based (R-Tenn.), who voted against the cut
not on taxes paid but on need. last week, voted for it yesterday.
'I have decided I cannot live
with a vote' to undo the tax
increases enacted last Decem-
-House Waws and Means
Chairman Al Ullman

Rep. Barber Conable of New York,
senior Republican on the committee,
argued for a rollback. He said the panel
has "a political mandate from the
Democratic caucus and a strong ex-
pression of concern from the American
people, which cannot be ignored."
Eight Republicans and 13 Democrats
voted against the rollback; four
Republicans and 12 Democrats favored

Under current law, each worker pays
into Social Security 6.05 per cent of the
first $17,700 earned this year, or a
maximum tax of $1,071. A $10,000-a-
year earner pays $605. In both cases,
the employer matches the worker's tax.
Next year, the tax will rise to 6.13 per
cent of the first $22,900 earned, or a
maximum $1,404. By 1987, the tax is due
to rise to 7.15 per cent of the first

The plan rejected by Ways and
Means would have reduced to 1977
levels the Social Security taxes paid in
1979 and 1910 by most workers and their
employers. It would have cut by as
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May 11th through May 25th.
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Wallace closes political door

(Continued from Page 1)
HE'S NOT "THE George Wallace of
old," said the governor's ex-wife, Cor-
nelia, whose exit from the governor's
mansion last September led to a divor-
ce settlement four months later.
Others said that Wallace, who enjoys
being surrounded by political cronies,
was reluctant to abandon his home turf
for life among strangers in the nation's
All these factors, and others, were
probably in Wallace's mind as he closed
he door on a political career that began

with his election to the Alabama House
in 1946.
governor of Alabama, Wallace seemed
to enjoy most of his four whirlwind
campaigns for president, as he taunted
the establishment and its "pointy-
headed" intellectuals and bureaucrats.
From Maine to California, he plum-
bed the fears and expectations of the
nation's middle class, the "silent
majority," generating a wave of sup-
port that was at its peak on May 15,





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(Please Print) Lost Name First Middlelnitial $350 Spring (lila)
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1972, when he was cut down in an
assassination attempt at a shopping
center in Laural, Md.
"I guess you could say that Arthur
Breemer really messed me up
politically with that gun," said Wallace
later, referring to his convicted
as his calling one more time, running
for president in 1976. But after a defeat
at the hands of fellow southerner Jim-
my Carter in the early primaries,
Wallace threw in the towel to support
the former Georgia governor.
To reporters, Wallace, troubled by
worsening hearing problems, has
seemed increasingly disinterested in
state matters in recent months, railing
against the Legislature while it was in
session earlier in the year but holding
few press conferences.
As governor, Wallace has spent much
of his time at the governor's mansion,
chomping on an ever-present cigar as
he transacts business by telephone.
Much of the detail-work is left to aides.
IT IS POSSIBLE that this preference
for the broad sweep of politics over day-
to-day business contributed to his
decision to abandon his bid for a federal
office loaded with chores.
The status of Wallace's health
remains an unknown factor in his
decision. Camp said that, in his opinion,
the paralysis and hearing difficulties
were "nota factor."
But, he added, "I can't say that if he
had not been shot he would have done
the sametlsing,"
Camp said that Wallace appeared
"relieved and elated" after making the
announcement, as well as gratified by
the warm response from the people of
As for the future, Camp said Wallace
had received "several offers" of em-
ployment prior to the announcement
and would probably receive several
But he said-the governor is not in-
terested ir . rpposal to endow a mahtr
for him at Ali:Ibza.waaversity.m .

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.i ir .r. r. .rar. r. r... s . r KOMAR . r..r:rr .....

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