Evening star., 1963-03-10
ROCKEFELLER
Governor Says Kennedy Proposals
Will Mean More and Larger Deficits
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Wisconsin, top Republican tax
expert in Congress, said the
economic proposals advanced
by Gov. Rockefeller meet the
fundamental tax criteria Of the
Republican Party"
He said at a news conference
here that the Rockefeller state
ment was fundamentally an
excellent analysis"
at would bring expenditures
under control before we talk
about increasing revenues" the
ranking minority member Of
the Ways and Means Commit
tee said. 1T is a realistic ap-
praisal of the review and re-
form of tax rates. The admin
istration has negated its rates
reductions by distorting the
reform structure of the rates"
Gov. Rockefeller's formula
for a balanced national eco
nomic program" called for:
1. A cut in the corporation
tax rate from So to Al per cent
on July to release $2.5 bill
lion for new investment"
q. A $7.5 billion, across-the-
board reduction in individual
income taxes, also effective
July /.
3. A "hold-the-line" policy on
Federal spending, cutting at
least $5.7 billion from the Ken
nedy budget.
4. A goal Of balancing the
Federal cash budget in fiscal
1865, two years earlier than
Kennedy administration Of
ficials believe possible.
5. After the budget is bal
ar1ced. continuing gradual re-
duction in the Federal debt and
expansion Of essential Govern
ment spending.
Corporate Tax Proposed
The size of the Rockefeller
kax-cut proposal is close to that
recommended by Mr.. Kennedy.
But the President wants the re-
duction spread over a three
year period, which Gov. Rookie
felIer said would dilute" its
impact on investment and con-
suTner spending.
The Governor was also criti-
cal of Mr.. Kennedy's proposal
to accelerate corporate tax
payments while gradually re-
ducing the rates.
"The net effect Of this" he
said, would actually be to in
crease corporate tax payments
by the equivalent of 4 percent
age points to an effective rate
of 56 per cent in 1864.
sCuts below the prevailing
rate Of So per cent would be
delayed until 1866 and the full
REDUCTION to A per cent would
be delayed until 1869. This
would retard added investment
instead of stimulating it now"
Gov. Rockefeller said the i'm
pact Of most Of the Presidents
proposed reforms ''is definitely
repressive." They should be
jettisoned entirely. he said.
Incentive Seen Ignored
THE basic fault of the ad-
ministration's approach Is its
failure TO understand tn e
forces underlying growth. The
missing element Is the
provision of effective In
centives to modernize and de-
,velop our productive plant and
equipment"
He described the new ad-
minstration fiscal pl an as
another attempt to achieve
prosperity by pumping UP pur-
chasing power through deficit
spending" q more expensive
version" of the approach Mr..
Kennedy used during his first
two years in office.
This program is doomed to
failure" Gov. Rockefeller de-
clared. The growth rate has
not been accelerated. The rate
Of unemployment was back up
TO 81 per cent last month.
The Kennedy program Of
more spending and improperly
designed and diluted tax cuts
will not produce full prosperity
and vital growth-but more
and larger deficits" the Gov
ernor concluded.
Party Unity Discussed
At the airport in New York
and again at q Milwaukee
press conference, Gov. Rookie
feller told reorters he has not
decided on running for Presi-
dent In 1864.
He said his talk with Mr.
Nixon-a one-hour converse
ton at the apartment OF his
brother. Laurance Rockefeller
dealt with unity within the
party and effective means tc
strengthen this unity. .. II Il
still too early TO crystalize on q
single candidate"
In Milwaukee, the Associated
Press reported that Gov
Rockefeller received "a con-
spicuously warmer reception
from party leaders than he
had drawn In 1859, when he
was considering runnina
against Mr. Nixon.
The Governor commented
wryly that on his visit -four
years ago. Il didn't exactly
feel q draft" The Wisconsin
leaders then were solidly be-
hind Mr.. Nixon's candidacy.