Milford chronicle., 1958-04-18
OUR TAX PROBLEM

Il
Just few months ago. when Russia
launched Sputnik |, it seemed fanciful to talk
seriously about early tax reduction in this
country. Many then thought, as a matter of
fact, that there was real likelihood of tax
increases right up to a wartime level.
Sputnik III is still in orbit, circling the
earth, and is now accompanied by the u. S
Army's Explorer and the u. S. Navy's Van
guard. Military spending is soaring. Yet
as Stewart Alsop writes (and most of the
other well-informed commentators are now
saying much the same thing) 50. a big tax
cut can be written down as dead certain un-
less there is a sudden and totally unexpected
economic upturn." Leaders of both the par
ties are now leaning that way, and each side
naturally enough, will try to exploit the great
est possible political advantage from what
ever is done.
within the Administration" Mr.. Alsor
also writes, there is no longer any resist
ance whatsoever to big tax cut, if the eco
nomic slide continues The only debate is on
timing and size of the cut" One Administra-
tion group which, it is believed is led by
Vice President Nixon, wants the cut to be
no less than SIS billion, and would like more
1t also wants to move quickly. The President
and the Secretary of the Treasury, on the
other hand, regard the SIS billion as a maxi
mum figure, and are inclined to delay action
until clearer picture of what the economy
is going through emerges. +,
Just what form or forms the tax cut will
take when it comes is highly controversial
matter now. Many proposals are in the wind
Some want to forgive" all or part of with
holding taxes for a period of time, on the
ground that this would pump money into the
channels of consumption in the shortest per-
od of time Some want to increase the indi-
vidual exemptions from the present $500 to
$700 or 5000 move which would give most
of the benefit to bottom-bracket taxpayers.
Some favor an across-the-board cut Of say,
10 per cent. This, naturally would give more
of the cash to the middle and upper bracket
taxpayers. And there are other ideas, such
as fixed tax credits for each member of the
taxpayers family, and an increase in the OPP
tional standard deduction, which is now 10
per cent or, if deductible items are listed, a
maximum of $1,000. Either of these plans
would primarily benefit lower-bracket tax
payers.
If we have tax cut along with greatly
increased government spending, what is go
ing to happen? One thing is sure-the gov
ernment will again engage in deficit financing
on a huge and perhaps unprecedented scale
That deficit, as Mr. Alsop sees it, could even
be of a size. to make the eyes of the most
daring New Deal pump primer buk OUT
that is, SO billion or more. The actual size
of course, will in large part be determined
by government revenues which in turn de-
pend upon individual and business incomes
AS of now, these revenues will be much below
the earlier estimates. 1t is the hope Of the
advocates of big tax cuts that pump printing
will change that situation.
Finally, one little word should be men,
toned here-infation. Will these pending
government policies and actions set off new
and major infationary wave and cheaper the
dollar some more? Millions of people have
that question in mind today.
THE HOME RACKETEERS
Spring is traditionally time for home
repair and improvement. 1t is not surprising
therefore, that spring is also the season when
the home improvement racketeers flourish.
These shifty, fast-talking fellows employ
various methods of separating the home own.
er from his dollars and giving minimum in
return. They promise big and deliver small
They talk about first-class -work-work sc
good that it will result in a model" home
and then produce a shoddy job that falls
short of decent standards.
These home improvement racketeers cut
a wide swathe because there are so many
millions of potential victims. Home owners
in this country spend something like Ia bill
lion dollars annually on upgrading their liv
ing quarters. The racketeers get juicy share
of that.
There are ways to deal with these slippery
fellows. The best way of all is to deal only
with established, reputable firms Another
way is to be suspicious of anyone who offers
discount price on home improvement be-
cause your house has been selected as "mo
del" in the neighborhood. And if salesman
suggests falsifying statements on an FILA
loan application, that is the time to show hin
the door One thing is worth repeating Dea
only with established firms of good reputa
tion, and you won't wind up on the shor
end of the deal.