OCR Text |
Show Page 6 UTAH FARM BUREAU NEWS Issue September-Ocfobe- r AFBF Board Calls For Economy Before Taxes Are Raised The American Farm Bureau said last week a reduction in government spending should come before any increase in federal taxes. The AFBF Board of Directors Issued the following statement during its meeting in Chicago on September 14: We oppose any increase in federal taxes that is not matched by a prior and equivalent reduction in government expenditures. We do not believe that it would be sound fiscal policy to increase spending. We cannot in good conscience associate ourselves with those who would support a tax increas in the name of fiscal responsibility while at the same time promoting programs which, if adopted, would result in a budget deficit even worse than the one now in prospect. The Board statement reiterates Farm Bureaus call for government economy. In March the organization forwarded to the Appropriations Committees of Congress recommendations for cutting expenditures proposed in the January budget by $5.2 billion : 47). Some of Farm Bureaus rec-ommendations have been approved and other cuts have been made. However, it now appears that Congress will cut the January' budget by only about $3 billion. In May, during hearings on the proposal to increase the debt ceiling to $365 billion. Farm Bureau filed a statement repeating the serious need for spending restraints and cautioning against policies which contribute to a rising debt (see NEWS LETTER, May 22, p. 81). In late August, Farm Bureau again presented its budget-cuttin- g recommendations to Congressional leaders for consideration as a solution to a part of the expected deficit (see NEWS LETTER, Aug. 28, p. 137). THE HOUSE 'Ways aod Means Committee is now holding hearings on President Johnsons proposals for tax increases. The President has recommended: (1) A temporary surcharge 10 of percent on corporate income tax liabilites, effective retroactively to July 1, 1967; (2) A temporary surcharge of 10 percent on individual income tax liabilities, effective October 1, 1967 (however, approximately 16 million taxpayers would have no increase in their tax liabilities because the Presidents proposal exempts from the surtax single persons with earnings of $3,000 or less, and married couples with 'two or more dependents and earnings of $5,000 or less); (3) Continuation of excise taxes on automobiles and telephone service scheduled for reduction or elimination on April 1, 1968; and (4) A speedup of corporate income tax payments beginning on January 1, 1968, providing that corporations pay 80 percent of their estimated income taxes rather than 70 percent on a current basis; and providing further that small corporations would have to meet the same criteria over a five-yeperiod. It is estimated that for fiscal 1968 the income tax surcharge would produce $6.3 billion, the excise tax continuation would produce $300 million, and the speedup in corporate tax payments would produce $800 million; or a total of $7.4 billion. The President estimated that, with his $7.4 billion tax package, receipts for fiscal 1968 would be $123 billion down $3.9 billion from January estimates. He also indicated that expenditures could be as high as $144 billion up $9 billion from January. This indicates that the 1968 deficit with the tax increase could run up to $21 billion without it, $28.4 billion. The President also proposed that the $21 billion could be further reduced by spending cuts. He suggested ways in which the $144 billion spending figure could be -- ar cut by $4.5 hllion. First, $1.5 billion could be cut from numerous spending areas. Second, the proposed federal pay increase could be held to $1 billion as requested in his January budget, rather than $2 billion as suggested by some Congressmen. Finally, Congress could restore $2 billion of authority to issue participation sales certificates. non-defen- se If these actions were taken, and the tax proposal passed, the 1968 budget deficit could be reduced to $16.5 billion. It should be noted that this would stffl be the highest peacetime deficit in the nations history. Further, it should be pointed out that the participation certificate proposal is merely a bookkeeping device. B Mills Calls For Economy Before Increase In Taxes President Johnson's proposal for a temporary surtax on incomes remains the most controversial of the major issues now before Congress. Last week the chairman of the House Ways and Means Committee, the group which originates all tax legislation, said the "first order of business should be a program laid before Congress saying where cuts (in federal spending) can be made." Representative Wilbur D. Mills (D.) of Arkansas said, "If I'm going to be for a tax increase, I want some assurance that it is going to be temporary, and I know it will not be a temporary increase unless some action is taken here and downtown in the Executive department to reduce expenditures." SOTS WERE GW WKI WJ IP 7 DOTH? Nowadays, if you were to believe all the ads about insurance companies, youd get the impression that everyone of them had Johnny Unitas, Marv Flemming, Elroy Hirsch, Frank Gifford, Paul Horn-unBronco Nagurski and Red Grange, all in the backfield at the same time. Reading on in those ads and youd find that these companies have all the plays, all the programs and all the policies. g, Thats advertising for you. It takes more than fancy uniforms to win a ball game. In the end, its the score that counts. Evaluating an insurance company means looking at the whole picture: coverage, price, claim service and agents nearby, ready to help. Company X might have a flashy quarterback, but be weak on receivers and you wont find that in the ads. Were proud of our touchdown record Just because we dont spend thousands mean were not up to date. with our customers, and our balanced program of service. of dollars on advertising in magazines and on T.V. doesnt You can bet your season ticket on that! UTAH II FARM BUREAU HUttance HOME OFFICE 6 2 9 EAST 4th SOUTH SALT LAKE CITY UTAH |