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Show fr v . Friday, December 12, 1958 JHE UTAH STATESMAN Page 2 A J. H-- a 2 a THE UTAH STATESMAN . jA' i A Weekly Newspaper. Devoted to Good Government'! HARRY B. MILLER, Publisher j H. V, WRIGHT, Editor ,r , ' , Mrs. Madge1 H. Fairbanks..-- : v It is commonly said that there is no hope of tax reduction Associate Editor v Mrs. LaVeri Neilsen ... . . . ' h --i Editorial Lori Rytting .....1. . State Central Committee .:......:.....Womens Division Miss Mary Gardner ........ .Dick Richardson .....M...e.M...w. Art ; .Cartoonist ; Entered as 2nd Class matter at the Post Office at Salt t Lake City, Utah, under the Act of March 3, 1879 Subscription rate 91.00 per year . '' : i i . Published weekly at 421 Church Street Salt Lake City, Utah . National Editorial Association 1958 i VoL 12; No. 48 December 12, 1958 : No Comment w.douthat by james Assft. Vice President,. Government Relations Division ' of the National Association of Manufacturers. . N O COMMENT1 is a report of incidents on the national scene;, and does not necessarily reflect NAM policy or position. - . . ; WASHINGTON, Dec. 10: One of the major topics of conversation in Washington is the forthright spedth by Postmaster General Summerfield to the Congress of American Ind basic ecodustry advocating that the nation follow nomic principles in order to assure its continued greatness. N The. speech was regarded as of highest significance, since it went farther in this direction than any other Administration official has ever gone' publicly. There was immediate speculation as to whether it fully reflected the present views of President Eisenhower. Principal comment in this connection is the effect that such an Administration program would have on the outcome of the 1960 Presidential and Congressional election.. There.: are: many in. Washington who contend that the voters should be given a clearcut choice between radicalism and conservatism and that, if this were done, the conservative candidate could be expected to make an excellent showtime-trie- - ing. ' v In this connection, the Postmaster General is convinced that liis program (to use his own words) is the essence of true liberalism the kind of liberalism which knows that the strength and glory of our nation is the strength and glory of free men organizing and conducting their lives in freedom, and which seeks "to spread the life of freedom to. all the people of the world. Here are some of the major principles supported strongly by the Postmaster General principles which many feel must be followed in the future if essential jobs are to be provided . See NO COMMENT Page 6 . I.1 in this time of huge deficits. But of late, some men in high and responsible positions in the Federal government have been expressing a different view. They feel that tax revision, accompanied by certain tax reductions, would in the long run economic bring in more government revenue by stimulating undergrowth, and that a program toward this end should be - - - Mrs. Janet Schoenhals Miss Diane Thomas ' ......'..Editorial ...1.....'.....; taken now. Vice President Nixon is a leader among, those who take this position. Speaking at the Harvard Business School, he said' that tax reform is a major economic problem. To quote him directly: In the light of our expected twelve billion dollar budget deficit,, this would appear to be a completely academic question. But 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 stimuli for growth. He pointed out that if our economy were to grow at the rate of five per cent a year we would increase tax receipts by ten billion dollars more in 1962 than if it continues to grow at the rate of one and a half per cent, which has been the recent rate. Mr. Nixon then made some specific tax reform proposals. The stimulating effect of even a small cut in the corporate tax rate now fifty-tw- o per cent would lead to more rather than less tax revenue, in his view. So would reductions in the almost confiscatory rates in the highest brackets. He also urged a complete overhauling of the present hodgepodge of excise taxes. Specifically he suggested that save for the historial excises" on liquor and tobacco these should be replaced by a general manufacturers' excise tax of about one and a half per cent Representative Simpson, a member of the House Ways and Means Committee, which writes all the tax laws, has a generally similar tax reform program. He says: Without abandoning my ' advocacy of sharply reduced Government spending, I categorically state that if we are to maintain Federal Budgets in the 80 billion dollar categoray, it is essential that we stimulate the tax base so as to create an economy that is sufficiently healthy to sustain the questionable luxury of such high spending . . . He proposes that individual income tax rates be reduced ten per cent across the board, with a top of seventy per cent ; that corporate rates be moderately reduced, with a top of fifty per cent, and that the per cent capital gains tax be cut from its present twenty-fiv- e to half that. He also proposes a definite study of our Federal excise rate structure . . . to determine those rates that now constitute a serious deterrent to economic activity . . . Postmaster General Summerfield finds that our present tax structure is outdated and the result in large part of the prejudices and emergencies of the past. He relates this to national defense, saying: . . . military might and industrial might go together. The lesson the world learned from World War II is that industrial superiority is essential to victory. .. We must find ways of providing the capital formation which will make the greatest industrial growth possible. He then proposed a program for cutting individual and "corporate income tax rates, and other reforms. What will come of this remains to be seen. Other influential men in government, of course, hold very different views. But the examples cited here are representative of what seems to be a growing conviction that sweeping tax reform, accompanied by some tax cuts, is essential to putting the government on a sounder fiscal foundation. Brilliant Gift Idea! Holiday time and the giving is easy,, with Samovar Diamond-Clea- r Vodka. Sheer liquid elegance, Samovar . . . clarified to diamond brilliance. For gracious living-a- nd gracious giving.. . Samovar DIAMOND-CLEA- R VODKA Made from grain. 80 and 100 proof Schenley Distillers Co.. N.Y.C. 'Our Man Dulles Off to 'Traffic Jam' NATION: i Last we heard, our man, John Foster Dulles, seasoned traveller and brinkman, and the foreign ministers of Britain, France and West Germany were planning a in Paris, December 16, to decide what they should do jointly in the matter of the Kremlin's nasty attitude toward West get-togeth- er OTEKFBD.D. y'- - EME0GE5 OF. THE & .KENTUCKY STRAIGHT BOURBON WHISKEY sin1810 itiKoor OSWATERFILL AND FRAZIER DISTTlLERY COMPANY, BAIDSTOWNTKENTUCKY f Berlin. .This intention seems to have survived Mr. Krushchev's pointed invitation to the Western allies to get out and stay out of the city in question, and his Thanksgiving offer to make West Berlin a free cityand not throw the allied forces out or interfere with military traffic between West Germany and West Berlin for half a year. Still later, however, comes a blast from the official Kremlin newspaper, Izvestia, to the general effect that this is a problem for the two Germanies to settle between them, and no business of the allies who still indulge in the dangerous See TRAFFIC JAM Page 4 . Koop On Your Tooo VJItti rsogoz jmi'n Nov that got jhmV into oollof lot safe, handy NoDoatablii help yoo get ont Hamlets NoDos holy yon keep alert through long, kit traauniag ttttltnt . . . hotgt yon tnyoor lets daring nr NoDea table are tale at eefi ri mm nnarmlm ' rJ |