| OCR Text |
Show H .4 tv Stk Lake Tribune, Wednesday, September Deimin the Menare 12, 1979 B 5.5, Cut Social Security T ax to Shift Medicare Fund, Say Aides Hank Ketcham A I No Additional Burden New Value Added Tax Readied for 1981 Use I ? Associated Pres Writer A new tax. called a WASHINGTON 'Value added tax, could be in place Within two years to raise up to $150 billion at a partial substitute for other gtoxes, the chairman of the House Ways land Means Committee said Tuesday. said the Rep. A1 Ullman, Rvalue added tax, called VAT. could help "solve the problem of financing the nation's Social Security retirement system. However, he stressed that VAT "Would not increase the overall tax iburden for Americans. js We don't want one dollar of new igxes for the American people under Sodays conditions," Ullman said. He Moke at a seminar on VAT sponsored y the U.S. Chamber of Commerce raised through VAT w ould be i, Money fused to offset cuts in other types of flaxes, such as Social Security. For fixample, while VAT would be paid by (people who buy products, Social Securi-fttax is paid by workers and their employers. y MM to Goods on the value that producers add to goods, and is paid at Various stages of manufacturing. However, the total tax is ultimately paid by VAT is a tax of WASHINGTON purchase, taimilar to a sales tax. I While Ullman said he would discour-sagproviding exemptions from the VAT, he said it may be possible to justify excluding food purchases from rate tax. I Ullman objected to the description of VAT as a sales tax. One objection to VAT comes from states which now rely e state sales taxes inoperable Holds Hearings said the Ways and Means Ullman Committee will hold hearings on the proposed tax in October. While he said it's unlikely the tax could be approved for 1980, it is quite possible it could be in place by 1981. He said a major reason for moving ahead quickly w ith a value added tnx is the need to provide new financing lor the Social Security system. Present financing through payroll taxes is "a major political embarrassment" and also is a drag on the overall economy, he said. Ullman said that in the United States, the value added tax would have to be part of an overall package of tax changes. "The VAT on its own would git nowhere, he said. Part of Package He suggested that VAT could be part of a package that included: A 25 percent cutback in the Social Security tax, without a loss of benefits. More rapid depredation, for tax purposes, of business investment. double An end to the taxation of corporate dividends and profits. on " Reducing the the income tax, including a restructuring of income tax rates to ease inflation-induce- d tax pressures on ncome persons and limiting the maximum tax on income to 50 percent. Deferring taxes on dividends paid by savings and loan associations as an incentive to invest. "over-reliance- middle-i- a EvS -P- resident Carter's Social Security' advisory council has tentatively recommended that the Social Security tax rate be cut. on sales taxes as a major source revenue and fear the VAT would make . and Medicare benefits, is 0.13 percent and is scheduled to rise to 6 65 percent on Jan. 1, 1981. Wage Base Unchanged The council did not make any recommendation on whether to change the wage base on which the tax is levied. At present, the tax is levied on the first $22,9o0 in wages, but this max- - By Spencer Rich Washington Post Writer of By R. Gregory Nokes the consumer at the time ' rather than increased as scheduled, and that Medicare e financed in the future out of general revenues. ; counThe cil, which meets every four years to recommend changes in the system, proposed "R the time I found out I didnt like it. ..I ate It already." Zaire Leader Wins Carter Assurance Reuter News Agency WASHINGTON President Carter reaffirmed U.S. support for Zaire Tuesday in a White House meeting with President Mobutu Sese Seko. Mobutu was in Washington on a private visit connected with meetings of the International Monetary Fund. The White House said Mobutu described to Carter the progress Zaire was making in dealing with it economic and security problems. "President Carter restated our strong support for Zaire and the importance that we attach to the ongoing process of reforms in Zaire, the White House said. "He welcomed President Mobutu's description of progress that is being made in these areas. weekend that the Social Security payroll tax rate be slashed to 5.6 percent each for employers and employees and that the entire proceeds be used for old age and disability benefits. Medicare Financing However, Medicare, which at present also is funded by the Social Security tax, would be financed by earmarking a portion of each employes federal income tax and a matching amount from corporate income lax In effect, the plan would reduce the pressure on the highly visible and increasingly unpopular Social Security tax by shiiting the Medicare burden to general government revenues. The current Social Sec- urity payroll rato, paying for old-agdisability old-ag- $42,600 by 1987. Former Social Security Robert BaP, who proposed the 5.5 percent plan and Medicare shift, said it would Commissioner We wrote the book on MoneyMarket Certificates. HATOHAL over the e and enable the disability programs to go without further tax in creases until the end of the century. Mounting Social Security taxes have come under increasing criti cism from Congress and many workers. imum taxable wage is scheduled to rise under current law to $25,900 in 1980 and then in steps to R SALE , Now you can have one HOURS LADIES :ksk bangle BRACELET month WATCH DATE RIGHT WATCH UTAH'S TRITIUM LARGEST OF DtGtTAl Prudential Federal Savings SOUTH WEST TEMPLE S 5 KSidc OISPUT SELECTION WATCHES 3433 C MON. SAT. 9:30-(ActBM free. This free book is available at any PFS Office, and is designed to answer questions like: What is a MoneyMarket Certificate? Who are they for? How much interest do they pay? Federal regu'alions prohibit the compounding of interest during the teim ot the account toft 6 Persona Mr iV.vt Vi VmK) Sir m 2?j) vVr'i' SffCO .M uris , Piianciai Service ,h6 Fdhi 2'0C S .j C,U' h . U' I" . P y4 Highland 0' .'400 e. E Youre RCEdy for herre Cardin... .cdtclio Ken's: Fcstwecr - Crcjixn Styling with fashion in triRj you Pierre C3X!in footwear of light For Wa soft .WOsJdn leather. Ossa fttm ssvtra tana stytes, cOS73.C31 300 arctesn Fashion Shoes, LO Downtown and cot O trrsoawaii. II V vV'v v ,1 MftN Austin Reed Gives You the Blazer You Take it From There Suit-Look- ... Put simply, Austin Reed of Regent Street has a knack for style . just take a look at the Blazer Suit: a jacket with sig buttons . ", S'. . 0i and lining, a vest featuring two flap pockets, and straight leg pants with belt loops. Of Hopsae, a poly wool blend m navy and brown, $210. Match your Blazer Suit with our wide variety of Austin Reed slacks. Coordinate with other styles and colors, 37.50 to 47.50 Men's-Clothing- SL . JU w,wal . |
