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July 11, 1958 - Image 5

Resource type:
Michigan Daily, 1958-07-11

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fl toometr

Plans No Tax Cuts This Year

Mne. Chiang Tours University Areas

ncated Press Newseatures Writer
ie great debate, of the 1958
sion, whether to cut taxes,
ars resolved.
sere will be no cuts.
e Republican in the White
e and thenDemocrats who
the-course of Congress have
ared a moratorium on tax re-
Lons this year.
ider the plan, Congress has {
nded at their present rate
oration income and excise
s which were scheduled for
matic reduction June 30,
e lawmakers who believe that
using of the taxpayer's burden
e quickest route for a return
prosperity undoubtedly will
iniue their efforts.
it they seem doomed to fail,
Many Taxes Hidden *
the man most concerned, the
aying breadwinner, the tax
te was a remote thing. Other
income tax, he really doesn't
u what taxes he pays to the
al government. Many are
en, passed onto the consumer
he manufacturer, wholesaler
hat is the federal tax bite
y? What was it five years ago,
years ago?
were is no such thing as an
age taxpayer, so to find the
rer Tax Institute, Inc., a non-
t organization of Princeton,
created a straw man. We will
him Joe Taxpayer, a pretty
age sort of breadwinner.
Earns $5,000 Yearly
ae institute gave Joe an an-
income of $5,000, made cer-
assumptions about him, flgr
out his federal tax burden
several years and came up
these conclusions:
deral taxes would have taken
per cent of Joe's income dur-
1957. In 1935, however, the

only 1.5 per cent. During the war
year of 1945, the bill would have
taken 14.6 per cent of Joe's $5,000.
This is only the federal tax
burden. Joe also paid state taxes,
which couldn't be figured in.
Neither could another income
Inflation Cuts Income
But to get -an idea of what'
inflation has done in the last
couple decades, consider these fig-
ures by another watchdog agency,
the National Industrial Confer-1
ence Board.
Toequal the purchasing power
of $5,000 in 1939, a man with a
wife and two children-the Joe
Taxpayer type-must earn $11,140
today. Getting out of Joe's class,
a man who made $25,000 in 1939
must earn $69,991 today to have
equal purchasing power.
The purchasing power of the
income left after taxes in 1958,
the board figures show, is aboutj
52 per cent of what it was in 1939.
In other words, the value of a
1958 dollar in terms of the pur-
chasing power of a 1939 dollar is
about 52 cents.
But back to Joe and his federal
tax burden.
Joe Has Two Children
The assumptions made about
Joe were these: He has a wife and
two children, rents his home, and
drives to and from work in a low-
priced car which he. trades in every
five years. Joe's car is driven 10,000
miles a year and gets 18 miles per
gallon. Joe and his wifesmoke one
pack of cigarettes, a day, spend
$60 a year for liquor and beer, $50
for taxable recreation and $25 on
taxable appliances. The family's
only income is $5,000 and Joe
takes the standard deduction on
his income tax return,
Some of the federal taxes which
Joe-and almost every taxpayer-
pays are these: Income, automo-
bile excise, automobile parts, gaso-
line, lubricating oil, tires and
tubes, liquor, tobacco, toiletries,
luggage, admissions and appliance
The big one, of course, is the
income tax.' In Joe's situation, the
federal income tax would have
amounted to $30 in 1955, $50 in
1940, $630 in 1945, $365.40 in 1950,
$420 in 1955 and the same last
year. The tax rate has risen from
4 per cent in 1935 to 20 per cent
Auto Tax Big
The automobile excise tax is
another sizeable one. The insti-
tute averaged this tax over the
five-year life of Joe's car. It rose
from $3.60 in 1935 to $50 in 1957.
But it must be remembered that
the price of a low-priced car, as
well as the rate of the tax, in-
creased during those 22 years.
The tax on the gasoline Joe
uses would have been $5.55 in
1935, $16.65 last year. His liquor
tax would have been $5.75 in 1935,
$17.25 in 1957. His tobacco tax
= = = = ==== ==== ==,I

would have been' $21.90 in 1935,
$29.20 in 1957. In the case of the!
cigarettes, again, the increase in
the price as well as the tax was
taken into consideration.
Totaling up the federal tat bite
on Joe's income, the institute
found it would have been:
$76.64 in 1935; $104.96 in 1940;
$728.69 in 1945; $473.29 in 1950;
$547.71 in 1955, and $554.96 last
Board Names
I r1
As President
Clarence Markham was elected
president of the W a s h t e n aw
County Board of Education
Wednesday night.
He replaced Horace Whitney.
Elected to the office of vice-
president was Grace Stierle. Mrs.
Stierle is a Milan school teacher.t
Markham, a local insurance
man, graduated from the Univer-
sity in 1935, and received his mas-"
ter's degree from the University
in 1936.

Made Head'
Of Schools
Prof. H. Harlan Bloomer of the
speech department was elected
president of the Ann Arbor Board
of Education last night.
He succeeds Frederic B. House,
who did not seek re-election to the
board at the June school board}
He will serve until July 1959.
JohA H. Hollowell, a local phar-
macist, -was elected to the newly-
created office of vice-president.s
He had been secretary of the
school boarduntil the office had
been abolished.
Prof. Bloomer is director of thef
University speech clinic. He has
been a University faculty member
for 26 years.
He- received his bachelor's de-
gree from the University of Il-
linois in 1930 and his master's and
doctorate degrees from the Uni-
versity in 1933 and 1935 respec-
Balas gave the oath of office to
recently elected board members
Mrs. Brymer Williams, Prof. Al-
bert H. Marckwardt and Albert J.
Coudron. All three will serve
three-year terms.

Madame Chiang Kal-shek and the Inevitable cordon of phi
raphers made a limited but precise tour of selected points on ca
yesterday, the to-the-minute itinerary followed almost to the I
The tour began a little after 10 a.m., when MmIe. Chiang ai
at University Hospital. From there, the party traveled to the Ph
Memorial Project on North Campus, and finally returned to the
campus where a visit to the Orien-
tal Library closed the tour at
12:20 or thereabouts, just a bit
earlier than planned.
'High Spot'
To Mme. Chiang, much con-
cerned with orphanages and chil-
dren's hospitals on Formosa, the
Pediatrics De partment of the
Hospital was, as she staid when she
arrived, one of the high spots of
the excursion. She explained she
was viewing the clinic "to see
what you do with children," add-
ing that she was interested "in
every phase" of the work.
The procedure was reversed at
one point, however, when Mme.
Chiang commented that a little
girl writing on a flat board would
have a much easier time with a
slanted table in front of her. An
embarrassed nurse quickly ex-
plained that such equipment was
generally used, but was not avail-
able at the moment,
The group moved from the hos-
pital to the atomic reactor, where
Project Director Dr. Gomberg
conducted them through the
many corridors, and explained the
complicated equipment as much
"in laywien terms" as possible.
Worked Machinery


Fabled, Mysterious Borneo
Ignored by Rest. of World

tax bite would have


Ise Selected
'o Conduct
;nrse Study'
Prof. Gerald F. Else, chairmnan
the. classical studies. depart-
nt, has been selected to conduct
study of basic curriculums in
public schools, through a
int from the Reim Foundation
Ahn Arbor,
The grant provides for up to
,00 to be used in the study,
ich will be undertaken by sev-
d educators, scholars and lay
sons, along with Prof. Else.
The main objective of the study
1 hb the production of a hand-
>k defining academic standards
basic studies such as English,
tor foreign languages and

Associated Press Newsfeatures writer
Sweltering, mysterious, poten-
tially rich, the world's third larg-
est island lies almost ignored in
{the South China Sea.
This is Borneo, afabled land,
It is screened from public inter-
est in the smoke rising from the
nationalism melting away the
great colonial' empires. And yet}~
the British are quietly gathering
together the three territories of
North Borneo into a single admin-
istrative unit,
Near Indonesian War
It floats in the backwash of the
Indonesian Civil War, almost
without mention in dispatches.
Still, Indonesians die fighting
here, as many perhaps as in the
indifferently waged war in Su-
It scarcely rates a thought when
the misery of the world is called to
mind. But people are dying in East
Borneo for want of rice, thousands
more are suffering rom hunger.'
Forgotten Borneo, 286,969 square
miles of morass and jungle-swath-
ed mountains, ranks in size behind
Greenland and New Zealand
among the islands of the world,
Outsiders Control Commerce
Outsiders - Malays, Chinese,
Javanese, and British - control
its commerce in the coastal cities.
Its native people are. wild primi-
tives, their government is the
tribe, their homes the long houses,
built on stilts of ironwood and
housing 20 or 30 families.
The island's only highways are
its rivers. There are few ports
worth the name. Most of the coast-
al region is swampy, much of the
mountainous interior remains un-
Politically, Borneo is .a much-
sliced hunk of pie,
Most Belongs to Indonesia
The bulk of it, formerly Dutch
Borneo, now belongs to the infant,

. . for the BEST pizza in TOWN

CALL us to order REAL CORNISH PASTIES for picnics.
served Monday ond Wednesday between 4 P.M. and 8 P.M.

feuding Republic of Indonesia.
North Borneo, Brunei and Sara-
wak are under British control or
Brunei, a Malayan sultanate,
was well established when the first
white men visited Borneo in the
1500s, It remained a powerful state
for three centuries, then slipped in
1888 beneath the protective wing
of the British.
Sarawak was ruled by the fam-
ous "white rajah." A grateful Sul-
tan of Brunei ceded Sarawak to
James Brooke in 1841. Brooke, a
retired British officer, had out-
fitted his yacht for combat, clamp-
ed down on piracy and suppressed
a civil war along the North Borneo
Given to Britain
Sarawak remained in the Brooke
family until the Japanese invaded
Borneo during World War II. After
the war, the last "white rajah"
gave the territory to Britain.
North Borneo was controlled by
the British North Borneo Com-
Speculation is that these three
areas, drawn ever closer to the
empire since the end of the war,
will one day become a new domin-
Indonesian Part Poorer
Indonesian Borneo, by far the
bigger part of the island, is the
poorer. It is also the more dis-
Fighting against the Dutch was
common in the years leading to
Indonesia's independence. Four-
teen months ago, the island joined
a revolt against the Indonesian
government in Java.
Disillusioned after repeated un-
successfulvisits to Jakarta to seek
money to improve Borneo's back-
ward economy, its leaders accused
the central government of running
Indonesia's economy for the bene-
fit of Java
Thirty Starve
Severe food shortages also were
reported, The Antara News Agency
in Jakarta, in a late February dis-
patch, said 30 persons had died of
hunger, thousands of others were
suffering and tens of thousands
had been forced to sell their pos-
sessions to pay' the high cost of
In this same section, oil wells
operate at Banju, Tarakan, Bang-
salsembera, Balikpapan and Tand-
Jung. Sixty kinds of marketable
timber crowd the mountain sides,
Minerals are to be found: even
uranium has been reported.
But Borneo suffers from its own
rugged character. In some cases,
for want of a port, oil must be
loaded into tankers three miles at
sea by submarine pipelines, The
timber is difficult to extract and
get to the shipping points. Min-
erals thus far discovered have been
in scattered quantities,
Borneo waits for demand to
overshadow its rugged nature.
in oar tying
stands aut predominantly
when done Here,
t1. l are4 0
715 North University

CHILDREN'S CLINIC-Mme. Chiang tries to interest a small
patient in a teddy bear, but he evinces more interest in the view
out the window. After another attempt, he finally consented to
accept the toy,

At "the Cave," a device for
handling radioactive m a t e r i a1
without actually coming into con-
tact with it, Mme. Chiang stood
outside the compartment and
manipulated the handles that con-
trol the artificial "hands" inside.
Then everyone trooped to the
Oriental Library, where Mme,
Chiang walked through the stacks
of Chinese and Japanese litera-
ture. She also listened to an ex-
planation of the University's Far
Eastern studies department, in
which she seemed especially in-
Finally - as nearly on schedule
as possible - Mime. Chiar g left
the library, and the sightseeing
trip was at an end,

both hot and heavy
Story by
Pictures by


0 2-9575






Shortie gowns ... Slips... Half-Slips
Shortie pajamas .'. .Sleepcoats
Discontinued Styles
Nylon-tricot... dacron and cotton blends

WORKING THE CAVE-Mme. Chiang gingerly manipulates the outside hands thai
activate the eqiupment inside. She was much interested in the workings of an atomic
reactor, as her country is currently doing atomic research with the aid of the U ited

REACTOR ON-The signs were lit as Mine,
Chiang peers into the pool of water that domi-
nates the reactor room. Dr. Gomberg explains
the process to her,

N to
NW 2e-to .98
were to $8.98


'Corner of' Packard and State
n.II A l1 Y OI W C

. m ~ u - x2I~NN"MR,

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