Milford chronicle., 1961-06-02
DRIVE ON DELINQUENCY

president hennedyS proposal Tor q con-
certed fve-year attack on problems of juve-
nile delinquency appears almost certain to
elicit strong positive response among the
law violation by youthful offenders has
touched almost every community in the ma
ton. The public is in a mood to do what
ever needs doing to turn youthful energies
into worthier channels.
The very heart of the matter is that no
generally applicable-and certainly no sim
pie, easy-remedies for Juvenile delinquen-
cy have been found. Learning more about
how to deal with youthful crime is, quite
properly, prime objective of the admins
tration's program
This objective will be implemented
through grants-to states, communities, and
various institutions or agencies-for pilot
projects to curb and if possible to prevent
delinquency. The most effective methods
will become known to workers in the field
throughout the country and can then be
widely applied. If the administration plan
is approved, federal money also will be used
to provide technical assistance for groups
dealing with delinquency and to train
much-needed additional personnel.
Mr. Kennedy's proposal calls for the ex-
penditure of 10 million dollars the first year
of a projected five-year undertaking. That
relatively small sum might turn out to be
one of the best investments this country has
ever made. A thousand times that much
would be well spent on developing good
young citizens from the dark ground that is
now breeding so many young lawbreakers
1~SS@%S
DON'T STEP BACKWARDS
The Administration tax proposals, as
presented to Congress in the message of
April 21, creates some very serious ques-
tionS
Everyone will agree with the general
obiective-to moderniZe our industrial
plant, to create jobs, and to spur our eco
nomic growth. But there will, and should
be, the most careful examination of certain
provisions.
To take one example, the message urges
that Congress repeal law of several years
standing under which individuals can ex-
clude from income tax the first $50 of divi-
dends received, and can claim tax credit
of per cent on any remainder.
That is in no sense a tax loophOle. 1t
simply recognizes, to very modest degree,
that the tax laws as they apply-to dividend
income are inequitable and unjust. This Is
the one and only form of personal income
that is subjected to double federal taxation.
The profit earned by corporations is first
taxed at So per cent. Then, whatever re-
mainder is paid out to the owners in divi-
dends is subject to the individual income
tax, at rates ranging from bottom of 20
to top of 81 per cent.
Even leaving the question of justice en-
tirely aside repeal of the dividend exclu-
sion would be barrier to economic growth.
This growth is, in large part. dependent on
the investment of savings, in the securities
of enterprise Shareowners are big part
of the engine that makes the wheels go
round And, if potential shareowners see
that whatever profit they may earn from
the risks they take are to be doubly penal
lied by taxation, they're likely to put their
money elsewhere.
Let's not harness up two horses to pull
in opposite directions.
FACTS AND SOCIAL SECURITY
The truth about this country's social Sc
curity program has been distorted and mis-
represented to the American people and
important political and economic conse-
quences" may result when the facts are ul-
timately understood This is the view of
an authority on such matters-Ray M. Pc
terson, vice president of the Equitable Life
Assurance Society of the United States,
writing in the Journal of The American
Medical Association.
Mr.. Peterson makes a number of ex-
tr6mely important points. Among them:
The public is being given the false i'm
preston that the method of financing the
social security program possesses many of
the unique characteristics of voluntary pri-
vate insurance.
The program has been misrepresented
as being a time-tested and tried and proved
system of financing old age benefits.
People are being given the mistaken i'm
preston that social security benefits are
paid out of accumulated reserves, similar to
private insurance programs, where the truth
is they are financed almost entirely on a
pay-as-you-go basis with benefits paid out
of current income.
Ia his words, mo reserve is accumulat-
ed, no element of prepayment is involved.
Simple statistics tell the story. From 1856
through 1865, total tax collections for social
security will be just about the same as bene-
fits and expenses-which means that it is