Milford chronicle., 1962-06-29

MILFORD
THE ADMINISTRATIONS TAX BILL
One of the changes which would be made
in the present tax laws by the Administra-
tion's new tax bill is plan to tax the prof
its of overseas subsidiaries of American
Companies as they are earned, rather than
waiting for them to be returned to the
United States.
Spokesman for the Administration indi-
cate that one of the main reasons for pass
ing such legislation is to eliminate tax hav-
ems for companies which have set up sham
subsidiary companies abroad to avoid pay
ing taxes. There are reports that some Am
erican companies are buying up Dutch and
German firms for the sole purpose of hav-
ing the companies in case they need them
at some future date.
While investing in Europe helps us, it
does not help us nearly as much as invest
ing in the United States. 1t has been esti-
mated by certain government experts that
one dollar invested in Europe has only four
per cent of the impact on u. S. employment
and income as a dollar invested in this
country.
Another important reason for making
the change in our tax laws, so as to treat
investments in this country the same as in
foreign countries, is the fact that the change
al reason for the tax change is the excessive
outflow of American capital.
A treasury analysis indicates that if this
legislative change were made that it might
problem, in that the return of taxes to this
country would increase the flow by between
5000 million and S4O0 million.
~S0%%
MEDICAL BENEFITS AND PUBLIC
OPINION
1t has been said that the American peo-
pie are in favor of the bill which would give
medical services to everyone drawing social
security benefits, and would increase social
security taxes to meet or help meet the tab
and that the opposition consists only of
relatively small, vocal, and selfish groups.
Well, there is factual evidence concern
ing that view. Many members of Congress
periodically poll their constituents, to find
out their attitudes toward controversial is
sues. Of 27 polls on the medical proposal
taken some time ago, the voters opposed the
social security concept in 16 and supported
it in only IL.
More recently, nine more such polls have
been taken by members of Congress in their
their districts. The voters said No to the
social security concept in six of these-Yes
in three.
1t thus seems evident that there is heavy
majority opinion in opposition to the plan
1t is also significant that some of the polls
asked if the voters favored voluntary and
state administered plans for caring for the
INDECENT aged, and the response was eX-
tremely favorable. The Kerr-Mills bill, pass
ed by the last Congress, is based on this
idea and, while providing federal financial
aid places administrative responsibility
where it belongs-in the states. Another
long step forward is found in the plan spon-
sored by the Blue Shield organizations and
the American Medical Association for pro-
viding voluntary health insurance to the
aged at moderate rates.
The handwriting on the wall says that
more and more of the American people,
viewing apparently endless federal deficits
in spite of backbreaking taxation, are be-
coming opposed to the Welfare State philo-
sophy. And the social security approach toI
the medical problems of the elderly falls
sduarely within that philosophy.
WHAT OUR YOUTH DOESN'T KNOW!
Ninety-five per cent of all high school
students entering the work-force of Amer
lean business do so without any formal ed
ucation in what makes business tick
Each year in the United States more
than 100000 young workers join the bus
mess community. And fewer than five out
of every hundred have been exposed to as
much as one-semester course in economics
1lhe startling hgures are cited by the
National Association of Manufacturers Gts
10000 members include 1870 in the small
business category as a matter of grave
concern to the nation.
The association regards the lack of eco
nomic understanding as both challenge
and an opportunity for every businessman
in this community-and it lays on the line
plan for the butcher, the baker, and can
dlestick maker to do something about it.
Here are some examples of our shock
ing failure to teach high school students the
facts of economic life, based on the results
of authoritative polls:
62 per cent of the students thought that
a worker should not produce all he can.
rs per cent said that most Of the gains
from new machinery goes to the owners.
80 per cent believed that monopolies are
the rule in many of Americas major in
dustries.