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Show Pace Friday, September THE UTAH STATESMAN 2 12, 1958 he Titles President Dwight D. Eisenhower told the American people last week that they must fight if the need arises to prevent any successful conquest of Quemoy and Matsu by Communist China. Thus, me President, outlined once again the basic axiom of U. S. foreign policy, namely: America will be ready to assist any nee nation if and .when a force or nation becomes aggressive towards that country. The President emphasized in his nationwide radio and television broadcast to the people that it would be appeasement' with a probability of maover- jor war, to allow the Chmese Communasts whelm the Chinese Nationalists. He stressed that 'he did not believe that the United States can be lured or frightened into appease- . war. ment. The President termed the Quemoy incident an This plan," ambitious plan of armed aggression. he continued, would liquidate all of the free world positions in the Western Pacific area and brine than under captive governments which would be nostile No Comment By James W. Douthat Asst Vice President, Government Relations vices. Divi- sion of the National Association of Manufacturers. NO COMMENT is a report of incidents on the national scene , and does not necessarily reflect NAM policy or position. of tax reWASHINGTON, Sept form legislation were given powerful support by Vice President Nixon's statement urging cuts in personal and corporation income taxes and adoption of a uniform manufacturers excise tax. 10-Advo- cates This action has been urged for years by industry, which strongly advocates enactment of a proposal by .) and Herlong Representatives Sadlak for a series of five annual reductions in the " sonal and corporation income tax rates so that would be lowered to a maximum of 42 per cent Industry also favors enactment of legislation providing a uniform manufacturers excise tax exempting food, drugs and a few other things and leaving unchanged the alcoholic beverage, tobacco, communication and transportation taxes. . reform were Needless to say, battiers for tax Presidents heartened the Vice assertion, by greatly in an address at the Harvard Business School, that: We must not allow the fear of a temporary budget deficit to put us in a strait jacket which will keep us from doing what we ought to do to insure economic growth. Our goal should be to fashion a tax structure which will create more jobs, more income and more genuine security." Mr. Nixon said that, in the light of our expected billion dollar budget deficit," tax reform would $12 appear to be a completely academic question." But," he added, we are faced here with a dilemma. If we wait for needed tax reform until we believe we can afford a tax cut, our economy will have been denied vitally needed stimxnuli for growth. The importance of economic growth to our fiscal position is indicated by the fact that if our economy were to grow at the rate of five percent a year we would have ten bilKon dollars more in tax receipts in 1962 than if we were to continue to grow at the recent rate of one and one-ha- lf percent" To speed economic growth Mr. Nixon suggested the following proposals as areas that should have top priority for consideration by the Administration and by the Congress in its next session": In this day of rapid technological change we need more liberal treatment of depreciation for business taxation purposes. Only in this way can we stimulate the taking of risks by investing in new plants and equipment We should consider the economic effects of downward adjustments in business taxes. There are strong reasons to believe that the stimulating effects of even a small cut in the corporate tax rate of fifty-tw- o percent would lead to more rather than less revenue. Consideration should also be given to a complete overhauling of the present hodgepodge of excise taxes. If the taxes on liquor and cigarettes are left as they are, a general manufacturers excise tax of approximately one and one-ha- lf percent would as much is as revenue in bring presently obtained taxes. from all other excise (R.-Con- n.) (D.-Fla- . In the area of personal income the almost confiscatory rates in the highest brackets stiffle and g and encourage tax avoidance de prevent risk-takin- Sy Mhat The small loss of revenue caused by some re- ; The president has compared this situation to the crisis in Europe in the years immediately preceding the outbreak of the Second World War in 1939. He used this comparison because then, as now, free nations were being threatened by aggressive forces that sought to achieve their political objectives by force of arms. He (has said that there will be NO appeasement because appeasement led to war at that time and would do so again. The Statesman recognizes this stand as the only valid and reasonable approach to the situation as it now stands. If the United States were to make to the Chinese Communists, nearly the same of concessions that Were made to Germany and type Italy, one by one countries would be occupied and divided narrowing the reach of the free world. Naturally, there could be but one result: once again there would be a ed, possibly, by another war. No rational person in the free world can possibly want war, its horrifying repurouSsions and ramifications dispel the most needy of men. But the Communists, must be made to realize that the use of force against Quemoy or Maltsu is a threat to the settling of world problems by peaceful means, and don-cessi- on duction of these rates would inevitably be offset bv the new investment and business expansions which would result" Then Vice President Nixon gave an explanation of the importance of business to the nation and to and pondered which should be read the world deeplv by everyone. He said: Let us understand once and for all that business is the people. The people own it And their ownership is becoming ever more widely diffused. They make their living out of business. They depend on business for progress, for opportunity, for their mug and for the devefopment and protual duction of the military equipment which shields the nation against aggression. Prosperity for the American business. We cannot raise the floor of security unless we raise the ceding of opportunity. The best way for the American people to improve their living standards is through policies that promote maximum business i. well-bein- i NATION: Pixoti to the U. S. and the free world. Thus, the Chinese and Russian Communists would come to domanate at leak the western half of the now friendly Pacific Ocean. So aggression by ruthless despots again imposes a dear danger to the United States and to the free world. In this effort, the Chinese Communists and the Soviet Union appear to be working hand in hand." Now, having been climaxed by the preskleats speech, Ifche free world hangs on a small section of islands in the Pacific. What will be the outcome? Few experts can say. But, the shadow of a thud world war' looms, just as it did in the Middle East, just as it has since the signing of the truce ending the; last world . drift-follow- therefore has to be opposed by the armed might of the United States. If the Chinese Nationalist Forces can' not deal with it The conquest of Quemoy and Matsu would not only threaten the security of Formosa, or the Pescadores, or the Western Pacific area, or even all of the free world defense positions off Asia from Japan down through OldnaWa and the Philippines to the Malay Peninsula, it could be and is a dear danger to the free world and to the United States. H.V.W. Ms has called on county agricultural agents to raise their sights, broaden their scope and establish nationwide the rural development program which has improved the income of farmers in the pilot counties where it has been adopted. Speaking before some 1,000 county agents at their national convention last week in Seattle, Wash., Dixon pointed out that eight million farm people (lVa million families) have Family 'incomes of less than $1,000 cent to produce only, nine percent. The rural development program has grown," he said, from pilot counties in eight states to swnflar efforts in 30 States at present" A typical county in North Carolina did the following under the program: 1. Set up the characteristic area wide organi- a year. Brought in new industry employing 70 people and placed 100 more farm people in jobs in industry. 4. Organized a stock corporation to purchase sites to attract indi 5. Increased broiler chicken production by $116 million birds and laying flocks-b25,000 hens. 6. Added 50 new commercial milk producers. 7. Worked with 300 families on form and home planning and analysis. 8. Set out 400, C Rep. H. A. Dixon (R-Uta- h) These people have been neglected in the clamor of price supports, but their economic opportunities can be vastly improved by the rural development program, the promotion of new crops and industrial uses and other fabulous possibilities inherent in the Scope Report of the Department of Agriculture Ex- tension Service," Representative Dixon said. Pointing to what he called drastic and far reaching changes in the nation's form economy, Dr. Dixon said that these alterations demand new measures. He said, for example, that since 1935 the form population has dropped from 25 to 12 percent of the national census, dropping nearly 1.8 million in 1956 alone. He said further that in 1956 one third of all farm products was produced by less than 3 percent of the formers and that 91 percent was produced by 50 percent of the formers leaving the other 50 per THE UTAH STATESMAN A Weekly Newspaper Devoted to Good Government HARRY B. MILLER, Publisher H. V. WRIGHT, Editor 421 Church Street Phone EM matter as 2nd at the Class Entered Post Office at Salt Lake City, Utah, under the Act of Match 3, 1879 Subscription rate $1.00 per year Published weekly at 421 Church Street Salt Lake City, Utah . 49 .. National Editorial Association 1958 Vol. 1; No. 36 ii September 12, 1958 zation. 2. 3. Made a labor, marketing and school survey. y lots. 9. Organized country wide recreational prowith baseball leagues, swimming pools and gram canteens for teenagers. 10. Obtained workable improvements in educational facilities. Too many unsound panaceas have only ended up in political Wind alleys and caused the consuming public and taxpayer to revolt because the farm programs have become so complicated," he said. As an example he cited the com bill killed last year in the House which would have cost $990 million and added about 9,000 employees to the U. S. Department of Agriculture at a time when the USDA budget whs nearly half the net farm income of the ' entire country. Dixon said that such ooStly farm program axe coming to an end, but he predicted that Congress will pass a utilization research bill' greatly expanding trie seven percent of agricultural products now used in industry. He also predicted greater expansion of the rural development program which costs little but helps rural people cooperate to, improve the economy in their area. |