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Show ' x? y v- X 4s -- ? ?s - wfcyfri&SS . T .jr W'&XSfc . - . , w Si t xcu ?Sr" ft sssv 4 President Ford conceded WASHINGTON (UPI) today that the state of the uai&n is not good sad asked Congress for a permanent tax cat of 118 5 billion a year for individuals ea top cf an immediate $12 billion tax rebate, discourage consumption while stimulating the economy with tax cats for both individuals and business He asked Congress to enact it by April I. To the pecked House where he served 25 years, Ford recalled a time shortly after he took office as a freshman - Delivering his first State of the Union address, Ford outlined a new economte program designed to end Americas dependence on foreign oil by 1985 while easing the immediate problem of a w ormolus recession which has overshadowed bis concern with inflation. The emphasis of our economic efforts must now shift from inflation to jobs, be said. Ford admitted his program was inflationary and would raise the national debt to S500 billion over the next two years He then outlined a daring program to raise the pnee of fuel through taxes and added costs by $55 billion to 383 VOL. NO. 1 A-4- congressman 26 years ago when President Harry S Truman reported to Congress that the state of the union was good. . "Today, that freshman member from Michigan stands where Mr Truman stood and I must say to you that the state of the union is not good," Ford said in his prepared message. Millions of Americans are out of work." he said Recession and inflation are eroding the money of 72 PACES 3 Ford's aides said his new pregram would raise foe cost of living bv 2 percent a year. Taxes and tariffs would add $30 billion to fuel costs and the ripple effect in higher prices for things made from petroleum and electricity or fueled by them would add another $25 billion a year to the prices Americans pay, according to L. William Seidman, Fords economic coordinator Energy program details. State of Union aa Page . sss SALT LAKE CITY, UTAH Rampton w 8Sr Cfc i ' In addii'on, Scdman said, the $50 the average family spends for gasoline, home heating aud electricity would rise by $250 to $1,200. As a refund, Ford also proposed a $10 billion reduction m taxes paid by bustnerees $4 billion in a tax credit for firms which expand and modernize and $6 billion in a permanent reduction of the corporation WEDNESDAY, JANUARY L7A0 p & J3? m " t A-- EW XT'S 15 CENTS income tax rate from 4S to 42 percent. Oil companies, however, would be subject to a new tax on windfall profits to prevent them from reaping undue gam from the nation's energy troubles. For individuals, tax rates would be cut by $16 5 billion or an average of 12 6 percent, witrs low and middle-incom- e families enjoying nearly hail of the total savings. A family of four witn a taxable income of $13,000 La 1975 would pay $518 in federal income taxes instead of $867, a savings of $349. Those earning more or less than $10,000 would get a smaller cut This tax cut would be on top of the proposal Ford disclosed Monday night m a television address to the nanon It called for a 12 percent rebate on income taxes doe on 1914 earning, to be paid m May and September and with a maximum rebate of $t,00Q for weathy see FokD on Page 6 mors. Prices are too high and sales are too millions slow 4 m 1 m 5, i rvii i i 8a 1 METROS 975 m i I SKI s Founded IS50 a hen Utah territory was known as the State of Deseret' Todav in the News 111 i 1 3v Double-dig- it Wiir!, r 1 THE BUDGET DOLLAR wvm&d 1975-197- 6 increases for I I L fiscal 'Big 3' sales tax orunni ( FUND By Dexter c. it,uis Deseret News political editor Ori4ERS 22 0 26 Editorial comment os Page fiscal year) and ear. ana game licenses not ne increased, but that the $3 million needed to offset inflation come from the General Fund. He recommended that instead of funding a 12 percent cost of living increase for public employes and school teachers, that 44 percent of this amount go towards providing a five percent boost in public employe year pensions. Hampton also asked legislators to revamp the public school finance law so that public schools may be compelled to share in any future fund cutbacks found to be necessary. His recommendations include no tax increases except those entailed in adjusting the income tax law to recoup an estimated 111 million loss. L As a matter of fact, he suggested that fish 7 rs 6j 4&yIm$erC. Eilts JpeserefNews political editor X" Bills increasing the tax on cigarettes and liquor, but J?hmmating the sales tax on 'yrescnption drugs, were scheduled to be introduced late today in the Senate. Also ready for introduction I was legislation significantly A-- amending Utah election laws, raising the driver education ,dax by 25 cents, providing for rtootorcyde driver training vJn public schools, amending lt insurance law the manner in the casing jwhich utilities may increase no-fau- 'nd The tobacco tax increase, is sponsored by Sen. The Karl N - Snow, bill listed as its intent an increase in the tobacco excise tax, but did not speedy the amount. , ' Snow was absent from the Senate and thus not available for comment on what he has in mind. Sponsor of the liquor tax bill, SB 40, is Svil. Moroni L. Lake, an Jensen, educator. The bill calls for a four percent increase in the tax, raising it from eight to 12 percent. Revenue from the liquor tux goes into the Uniform School Fund. i Le islil exeiiipliug medicme from the sales tax apphes only to prescription medicme and excludes any mdnory, prosthetic, opthal-Ru- c or occular device or &B36, lt alcoholic beverage. Us chief sponsor is Sen. Donald G. Brooke, lt Lake. of the election law bill is one winch See SIENATB M i Among provisions 33$ SOCIAL SERVICES 19 THERS , 5 l!!UHf(iiip.nijiiH jf'lilSlDxg ' WHERE IT GOES: He noted that the current three percent cutback which he invoked because oi an 1 1 million income tax shortfall, had fallen most heavily mi higher education and social services,' whose respective shares of, the cutback were 43.3 and 32.1 percent. that public schools are in tine for a million windfall from 1973-7approp-- , riations due to underestimation of revenue and overestimation of expenses, Rampton asked for amendments in the school law to prevent this. His suggestion was that the state be obligated to pay actual costs of programs, not estimated costs. And he requested that this be made Noting $1.7 Key recommendations in Gov. Calvin L. Rsssptoas Budget Message to the 41st Legislature today include: No tax increases, except those entailed in adjustment cf state income tax rates to recoup an inadvertent $11 million revenue shortfall. The state revert to its old income repo rung method to regam control of its revenues which are now somewhat hostage to the vagaries of the federal government. That public education and higher education receive state fund increases of 16.2 and 18.7 percent, respectively. The boost for higher education, however, is only 13 2 percent of its original appropriation which was cut back by three percent. That pensions of public employe retirees be increased five percent, with 4 percent of this coming out cf the contemplated 12 percent salary increase of public employes and school teachers. That school finance laws be cost-of-livi- A r xi '? tire eft immune from emergency budget cutbacks: also that the laws be amended to preclude future windfalls (beyond legislative intent) from accruing to the schools. Free textbooks be provided to public school students through the 12th grade. eUective for ia73-- 4 so the $i.i million wouto not have to be disbursed to the schools. His message, delivered to a joint session of the Utah Senate and House today, also: Requested that the state revert to its old income tax reporting system, so Utah would not be vulnerable to federal changes in income tax reporting. Asked that prescription drugs be exempted from sales taxes (at a revenue loss of $2 million) end that the Utah Legislative Council be assigned to study the feasibility of state-support- HIghiights of budget If v. House story, Page HIGHER EDUCATION $ Prescription drugs be exempted from state sales tax and the Legislative Council study the feasibility of exempting food at some future date A-- 3 icf nominated Reuss, Rep. is American Oil Company workers will walk off their jobs Thursday unless a new contract agreement is reached, union President A F. Grospiron says in Denver. He said no progress has been made in bargaining far Amocos 4,700 union employes. The company is a subsidiary of Standard of Indiana and the nations third largest refiner. A powerful winter storm stacked up some two feet of snow along the eastern shores of Lake Ontario Tuesday mght on the heels of another siorm that had spread crippling snowfalls from the Midwest to New England and was blamed for 59 deaths The South Vietnamese government has offered amnesty to draft dodgers and deserters in a move to build million-ma- n army. The up the countrys Saigon command also announced two air stokes on Communist truck and tank convoys north of Saigon. Israeli forces struck over the border into southeastern Ibenon today and battled Palestinian guerrillas for the fourth consecutive day, but eight Israeli soldiers were wmunded in the dash. Meanwhile, hundreds of Lebanese staged demonstrations demanding more protection against the Israeli attacks. The Palestinians claimed to have repulsed todays attacks and said about 50 Israeli soldiers were killed or wounded. hard-presse- Hays, Patman Two vetWASHINGTON eran House committee chairmen, Rep. Wayne Hays of Ohio and Wright Patman of Across the nation Around the world Henry who announced only Tuesday he would be available to succeed Patman as chairman of the Texas, were refused renomi-natio- n House Banking Committee. to those posts WednesRep. Frank Thompson of New Jersey was nominated day by the Democratic leadto succeed Hays, whose causership. tic attacks on individual F. of Edward Hebert Hep. members in floor debates and Louisiana, whose chairmangradual assumption of great ship of the Armed Services over housekeeping Committee appeared to be in power matters including funding greatest jeopardy, won of committees and individual on a vote of reallowances tee Democratic Steering and members sulted in a growing resentPolicy Committee. ment. The nominations are all The steering committee, subject to a vote in the which besides Albert includes Democratic party caucus to the majority leader, whip, , be held Thursday. deputy whip and all regional Tt steering committee, a whips as well as freshmen group of House members from me old Wrd leaders headed by Speaker Congress, was given the Cari Albert, cart five ballots nominating power for the before dumping Hays as first time in s Democratic chairman of the House Adparty caucus last December. ministration Committee. All first four ballots cast on 2 ties The panel dumped PatHays ended in dean of Thompson was nominated in man, the the House, on the first ballot a separate vote following the with a vote of 13 to 11. It then fifth Hays ballot. All votes were secret and it was not kjvHiT wO nnpod Hvc r Patman. Patman has been Banking Committee chairman since 1963 making turn the dean. 15 American firms ranging from All other 12 returning combanks to computers, chemicals and chairmen won renomi-natio- n mittee tractors located in the Soviet Union and six other chairAn American trade official said in men spots, vacated by elecMoscow teat the Russian move probaor retirement of defeat tion bly will mean at least a slowdown, if not were Llied with incumbents, an end, to expansion of U.S. trade in the Democrat 3 isc.-.- t Uk; siiiisr Soviet Union n A1 including expected, Soviet morning newspapers made of Oregon who succeeds no mention of the decision. But tee Tass Wilbur Mills as head of the e news agency earned a report Ways and Means Committee. on Kissingers announcement In other development? in The cornerstone of the Trade Agreeittut? iiCW enrui ment of lill gave Rurem trade status, essentially the Battle lines solidriied besame treatment other friendly nations tween its heavily Democratic receive. This changed an old Cold War majority and President Ford trade policy which, although liberalover tax and energy prog- ized, still put some import barriers in tee way of Russian goods. See MAYS m Page A--6 make an immediate study of college tuition, keeping in mind the governors recommendation of IQ years ago that nonresident students should pay 80 costs of their percent of education. (They now pay about 53 percent). Fish and game license fees should remain unchanged, but $3 million be appropriated from the state General Fund to offset inflation of costs involved in providing facilities for these sports. That action on the indicated need for a three-eegasoline tax increase le held m abeyance until Mareh 1 when the validity of several alternative sources of needed highway revenue will be determmed. That the contemplated fund surplus of about $12.5 million be uisoursea as follows. Hi. a million to tne Jordan-Prov- o River Parkway Authority; S million be added to the Water Resources Construction Fund; $1 million to set up a revolving fund for restoration of private range land; the remaining $8 million for building construction in the order of priority listed by the State Buddmg Board. nt See RAMPTON on Page Combined DPI, AP biggest yeariy increase since says The December decline was the first downturn in 14 months, providing further indication of slowing inflation. The report said declining agricultural prices more than offset a small increase for industrial commodities last month for the first decline in the wholesale prices since October of 1973. Ceremonies and demonstrarions around me country today marked the 46th birthday of the late Dr. Martin Luther King Jr., and there was some indication that all was not peaceful among the slam civil rights leaders followers. , President Ford's clemency program tor war deserters and draft dodgers, which is due to expire Jan 31, faced a test in a Washington federal court today. Ir. a related development, the chairman of the clemency board has indicated he would soon ask Ford to extend the program beyond the Jan. 31 cutoff date 20 9 percent during 1974, the 1946. the Labor Department Taking state revenues and slicing them into the budget is the task facing 41st Legislature. last 5. cigarette. PUBLIC EDUCATION y S.y Wholesale prices, despite a sharp drop in December of a seasonally adjusted 0.5 percent, jumped an average of M I IUIN A-- $825,303,300 .Bills ;rais in Washington t J PUBLIC SAFETY 2c BONDItilG COMMISSION 1c DEVELOPMENT SERVICES 1C NATURAL nESOUCES 3c GFNFpAl GOVERNMENT 8c DEPARTMENTAL COLLECTIONS 6c RESTRICTED ACCOUNTS 2c FEDERAL REVENUE SHARING 1c total figures, which includes federal grants, dedicated credits, etc., approximately $4O0 million is state money (General Fund find Uniform School Fund. ' , This compares with $350 million from or an increase in , state Sources in 1974-7state funds of about $50 million for nextfisea! -- a 15 Of the - TciAS TAX 7c OTHERS 20 SOCIAL SERVICE 10c HIGHWAY 6c public education. 16.7 percent for higher education and 14 6 percent for social services, the states fiscal Big Three. His overall figure compares with $6,481,5CD being spent during the current 1974-7- 5 HIGHWAY FUND 9 25c FEDERAL GRANTS com? FRANCHISEE Gov. Calvin L. Rampton today recommended a 1975-7- 6 state budget of $768,599,900, containing increases of 18.2 percent for vi FiSCAt YEAR HIGHWAY AND m , 14-1- 0 12-1- Stock market today - NEW YORK (UPI) Stock prices moved slightly lower today in reaction to President Fords programs and some negative corporate news. Trading on the New York Stock Exchange was sluggish. The Dow Jones Industrial Average, ff at the outset and ahead at noon, was off 2 66 at 640.04 shortly before 3 p m. EST. Declines led advances, 688 to 597, among the 1,705 issues crossing the tape. (Complete New York, American lists on Page D-- ) 2 f SSI GLs& Variable clouds with smoke, log More of the same through Thursday with variable cloudiness and srnokey with patches of ground fog. Moderating temperatures with highs in mid 30s, lows in teens. (See weather map ou Page .) SKI REPORT: Conditions good to excellent at all reporting stations on pack and powder. Roads open with some icy conditions at higher elevations. Night skiing at Nordic Valley, Park City, Powder Mountain and Sundance. Today's weather sunny and mild. D-6- Russ rejection of trade pact a - In a major WASHINGTON (UPI) setback to U.S soviet relations, the Russians Tuesday night rejected a new trade agreement because Congress demanded the Kremlin permit increased emigration of Jew's and other dissidents. -- The administration regrets this turn of events, said Secretary of State Henry A. Kissinger at a hastily called news conference. But fee emphasized communications from Moscow indi- tj$ ar0f t0 Wfrjjj CF disruption of detente. Ml the communications we have received from the Soviet government to suggest teat the political orients ties is unchanged, sad we will conduct our policy until we i twelve evidence to the contrary on the basis of carrying forward the policy of detente, said Kissinger. Soviet leaders had publicly attacked the emigration demand by Congress as meddling m Russias internal affairs. la cffirially repudiating the trade agreement, recently passed by Congress and signed by President Ford, the Soviets apparently will refuse to continue payments to the United States on its $'08 million World War II debt. Tht Swrists agiVl iii 1ST to pay back the money oer a period of years as part of its new most favored nation trading status with the United States ' There was uo immediate indication of what tee cancellation would mean to Ull-ma- two-pag- ' Information News tips 5244445 524-440- 0 Sports scores Ombudsman Action Ads Advertising 8 J&4-862- 5 WN OOSSNT PVg 8YBUFAP, BUT pom MfcNV 321-55- HtfLSCfcTJET 524 2811 CSUST Home delivery problems ( Cali Monday through Saturday before 8 p rn ) 521-2- 3 i ti |