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Show r - Page Two FRIDAY, UNE 16, 1961 THE SALT LAKE TIMES 33eliinJi llie Jeadltned urban commuter transit problem and improving the railroads' competitive position by passing favorable tax legislation are re-ceiving serious attention. The AFL-CI- O is still urging a tax cut to stimulate the economy "so long as large scale unem-ployment continues. Of course, such other special interest group as the Chamber of Commerce and National Association of Manufacturers are waging tra-ditional efforts to persuade Con-gress to cut back taxes. Oil and gas lobbyists are more hopeful than ever that levies affecting them will be eased next year. The shipping industry and in-dustries hurt by foreign compe-tition expect major tax relief. . .What is unusual, however, is not that these traditional tax cut efforts are being made, but in view of the unabated Com-munist threat, space race and rising non defense spending the surprise is that even the admin-istration's more cautious fiscal advisors are encouraging hopes for an early tax reduction. Americans have seen prom-ised tax cuts evaporate before. The world situation usually wor-sens, unforeseen fiscal complexi-ties develop. There is even a solid argu-ment, if business is recovering to the taxpayer as a tax cut, could only feed the fires of inflation. Yet administration economists, including Republican Treasury Secretary Dillon and conserva-tive Commerce Secretary Luther Hodges are opening encouraging a tax reduction by 1963 "at the latest." Like the proverbial "cloud no larger than a man's hand," the shadow of an unexpected 1962 political issue has begun to ap-pear on the horizon. Despite the continuing Com-munist threat President Kennedy repeated appeals to sacrifice and a growing willingness of the people to do whatever is re-quired of them, there is now widespread talk of a possible tax cut next year. This comes despite President Kennedy's recent declaration his administration would "spend whatever is necessary" to win the Cold War, the uncommitted nations and the race for space. It comes at a time when the administration is seeking record funds and even supplemental ap-propriations for defense, civil defense and foreign aid. It comes as the White House is continuing to seek increases in domestic welfare spending and broaden the scope of its New Frontier. It comes despite the business recession, which saw govern-ment walfare costs rise at the same time federal revenues were drooDine. not requesting additional taxes because the "present tax struc-ture and resources of the coun-try are, more than sufficient to support the needs." Furthermore, he thought his "very urgent request" could be supported without a budget defi-cit, if the economy continued to move ahead. Then, as unbelievable as the idea of a tax cut may sound, Dr. Walter W. Heller, President Kennedy's chief economic ad-visor, said he believes "a fed-eral budget surplus is likely if the present economic recovery t continues" at its rapid pace. "I think, come December and January, if this economy re-covers the way it should, we'll be faced with the problem for the year after that of carving up a surplus," Heller said. Treasury Secretary Douglas Dillon and Commerce Secretary Luther Hodges also told the an-nual Advertising Council meet-ing in Washington that business recovery will be big enough to produce a federal budget sur-plus is 1962-6- 3. Both of these men are con-sidered fiscally orthodox and The widespread tax cut talk comes despite the present ex-pectation that President Ken-nedy's first budget could even develop a $4 billion deficit. It comes despite the spiraling national debt whose $293 billion legal ceiling the White House even now wants Congress to raise. Still, the chief fiscal conver-sation in Washington was sud-denly become a widespread be-lief that, barring a major war crisis, we could still have a tax reduction next year, or the year following at least. President Kennedy himself first stirred hopes of a tax cut even as he delivered his personal "Freedom Doctrine" appeal to Congress for a $7 to $9 billion program to seize space leader-ship and an overall "Freedom Doctrine" program of almost $1 billion in new funds. Congressmen could hardly be-lieve their own ears when the President, after tabulating the increased costs of his urgent program, concluded by stating that despite the size of his new appropriation request, he was disinclined to make rash pre-dictions, yet they have virtually promised a forthcoming tax re-duction, which has become the chief topic of economic and po-litical speculation and a tax-cutti- ng mood is already under way. A major effort to cut the 10 percent federal levy on airline, rail and bus tickets was defeated only by a close 196 to 189 vote in the House, where, by law,, all fiscal legislation must originate. The high "temporary" Korean War corporation taxes and ex-cise levies on alcoholic beverages and tobacco, autos and telephone service were continued for an-other year only when the Treas-ury made a strong pledge to seek their elimination next year. Fiscal conservative Senator Barry "pay as you go)" Gold-wat- er of Arizona is continuing to press for a tax credit for par-ents putting children through college. Congress is taking majoi action on the proposal to permit the self employed to set aside some tax free money each year to build a retirement fund. Ma-jor proposals for relieving the NOW ENJOY y MORE FINE TAYLR NEW. YORK STATE WINES ff iSr -- jgj- WWPf I .gga. Sparkling Burgundy Burgundy ...a most Pale Dry Sherry ... ...dry and sprightly, appropriate dinner wine delightful appetizer wonderful with roasts to serve with red meats wine, with a crisp, or game. A gay party wine. or any hearty foods. dean, light taste. . . . YOU'LL LOVE THEM! 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