Milford chronicle., 1957-06-07
THE PROPOSED INCOME TAX CUT

THE PROPOSED INCOME TAX CUT
A number of proposals for placing cell
ings on individual and corporate income tax
rates have been made in late years. Some of
these are phrased in very general terms and
say only that the maximum rate shall be 25
per cent, so per cent, or some other percent
age Others are highly detailed, and offer
complete plans for the relief of taxpayers.
An usually interesting example of the
latter is found in an actual bill which has
been introduced by Representative Antoni
Sadlak of Connecticut, member of the pow
erful House Ways and Means Committee
which writes the tax laws. Mr.. Sadlak, to
use his own words, is convinced that achiev-
ement of moderate schedule of income tax
rates is necessary to the continued vitality
and growth of our nations economy, and to
the maximum advances in the standard of
living of all our citizens" His bill would
bring about major reform in the income tax
structure-and, perhaps of even greater
moment, 1t would compel the big federal
spending programs to compete against reg
ularly scheduled income tax reductions.
The bill would project the reductions for
each income tax bracket over five year
period. Provision is made, in the discretion
of the President and Congress, for postpone
ments of not more than a year at time
should an unbalanced budget and deficit
financing threaten. Thus, the rate reductions
Income tax payers at every financial lev
el would be benefited The bottom rate =
which applies to the first $4,000 of net in
cOme-would be reduced from 20 per cent
to 15 per cent Then gradual reductions
would be made in the progressive rates so
that, at the end Of the period, the peak rate
would be AZ per cent, as against the present
81 per cent.
Here are some specific. examples of total
In Abo & oIro of fox
would drop from 26 to II per cent; in the
$8-10,000 bracket, from 81 to 19 per cent !;
in the S20-22 900 bracket, from 56 to 25 per
cent. In the case of corporations, the nor
NAL tax would be cut from the current 80 to
% per cent on the first $4,000 of income,
and the surtax from % to 20 per cent. Thus
the combined top rate would drop from the
present 81 to AZ per cent
Where, under this proposal would the
government get the money it needs to Oper
ate? Mr.. Sadiak has the answer to that
and it will come as a surprise to many of u.s.
He points out that under existing tax
rates, the budget revenues of the federal gov
ernment have shown a net gain of more than
$11 billion in only two years-between fiscal
1866 and fiscal 1857. He adds: "SOme of this
gain reflects the impact of initiation on reve-
nues, but the major part of it has resulted
from economic growth itself"
it would take an annual revenue growth of
only about SO billion a year to accomplish the
scheduled rate reductions without net reve-
nue. loss to the government. That growth is
well below what most economists forecast.
Mr. Sadlak makes another interesting
point-nearly go per cent of the total saw
ings to individual taxpayers under his DILL
would fall in the taxable income brackets
up to $4,000. Only 6.3 per cent Of the saw
ings would go to those in the brackets above
$4,000. Thus, his proposal would be par
ticularly effective in relieving g. the tax
impact on new and small business Self-em-
ployed professional people, and the whole
range of middle income families"
ANIMALS AND COMMON-SENSE
Those of us who love animals usually
dogs or cats, have fondness for the animals
which sometimes get mixed up with COM
nonsense. One of the pet misconceptions,
we believe, is the belief by so many that ami
mails are happier when they are running
loose.
Nothing is further from the truth. Dogs,
for example, are not happier running loose
than kept in a yard, where they can get
proper exercise and where they can be with
the family most of the time. On the con-
trary dogs which run loose are often killed
in the highway by an automobile, get in
fights with other dogs which sometimes kill
them, and which often leave them marked
or SCARED, and generally fail to develop the
qualities of a well-cared for, kept-at-home
dog.
Much of what applies to dogs above, also
applies to cats. Therefore, those who have
a proper place for their pets and who keep
them from running looSe-which often re-
suits in annoyance to others-are both pro-
viding the best care for their animals and
the best life for them. And these make the
ties which make for an ideal companion.