Milford chronicle., 1962-08-10
FEUD OVER FINANCES

FEUD OVER FINANCES
Though the crisis over appropriations
which occasioned the unbecoming power
struggle between the two branches of Con-
gress has been solved temporarily, the Am
erican people are left with some anxiety over
implications of the dispute
What appeared on the surface as silly
fight over protocol probably masks funda-
mental disagreement over the role of gov
ernment in today's world. A creeping change
in the House of Representatives attitude to-
ward money bills seems to be at the root of
the difficulty. Growing steadily more conser-
vatlve, the House has taken on the role of
special watchdog over the U. S. Treasury.
Appropriations which often have the ap-
proval of Senate and President have rough
going in the House. There is nothing wrong
with being careful of the taxpayers dollars,
but whethero to spend or not to spend is
decision for the whole Congress. Emascu-
lated appropriation bills should not be left
at the Senates door on take-or-eave basis,
as occurred at the close of last years .ses-
sion.
This conditioG, which conceivaby could
lead to a constitutional crisis, arises in large
degree from the failure of many states to
reapportion. Hence the House represents a
smaller proportion of the population each
election time. Gradual progress is being
made on reapportionment, but meanwhile the
electorate hopes Congress will be responsive
TO public interest and avoid further feuding.
THE PUBLIC DESERVES FACTS
The increasingly bitter debate over the
proper method of providing health services
to the agedsh led, inevitably and unfortu-
nately, to some widely-held misconceptions.
Many believe, for. instance, that most.
elderly people now lack any economic pro-
lection if illness strikes. But the truth is
that SO per cent of all persons over 65 have
health insurance of some kind that this age
group is 6uying health Insurance faster
than any other group, and by 1865 more
than rs per- cent Of the aged who want cov-
erage will have it.
Many also believe that most elderly peo-
pie are sorey lacking in financial resources
But the truth is that the economic status
of those past 65 is, in many respects, bet
ter than that of any other age group. For
example, compared with aBy other. age
group more of the elderly own their own
homes mortgage free, have lower tax liabil-
ities higher liquid assets and fewer family
responsibilities.
This is not an argument against pro-
viding aid to those who need it-and the
Kerr-Mills law, passed by the last Congress,
is designed to do that, under sound feder-
a-state cooperative system. But it is an
argument against providing aid in shot
gun fashion @ all the people of one age
category whether or not they need it, and
whether or not they want to payo for it in
higher taxes And this is precisely what
the Social Security approach would do-at
q potentially astronomical COST
Too many of the facts have been OBJ
scured thus far.
ENCOURAGE INDUSTRY NOW
United States industries are up against
world competition as never before. To eX-
pand and modernize they must have capital.
To attract capital the investor must get
fair return on his money.
Taxing dividends twice, as our federal
income tax does, weakenS incentive which
investors need to risk. necessary growth
capital.
In 1854, Congress granted some relief
from double taxation by permitting share
owners to exclude the first $50 of dividends
from taxable income and to take A per
cent tax credit on the remainder. Now it
is proposed to repeal this small measure of
relief. o
Our competitors abroad enjoy more en-
lightened policy on dividend taxation. Eng
land, Japan, West Germany and Canada,
for example, have considerably lessened
double taxation by liberal tax credit or
other means.
We need to expand our economy to
achieve full employment, defend our demo-
cratic way of life, and preserve our free
enterprise system. Such AN economy must
have millions of people willing to invest
money to provide industry with the tools it
needs.
AS an incentive booster-at least the
first 500 of dividend income should be ex-
cluded from personal income tax and the
tax credit on the balance should be increas-
ed to at least 10 per cent.
The time to encourage the investor and
employing industry is now-not after for
eign competition has licked the pants off
of us.