11 Jan 1967
Page 1
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Newspaper
Terre Haute Tribune
Location
Terre Haute, Indiana, United States of America
Date
Jan 11, 1967
Page
1
President Johnson proposes a six percent surcharge on income taxes to finance the Vietnam War and dampen inflationary pressure. The move comes amid economic debate and congressional scrutiny as 1966 unfolds.
The administration backs a July 1 effective date for a 6 percent surcharge aimed at curbing rising activity and prices while financing Vietnam and domestic needs. Some economists warn it could spark a recession, while lawmakers push for spending cuts first. Johnson argues the tax is fair, broadly applied, and removable, with $36 more on a $600 tax bill and about $4.5 billion raised.
Officials say the plan yields tax collections in the first year and about 5.7 billion in the second year due to payment delays and final tax bills. The proposal would remove exemptions for corporations while offering exemptions for individuals and couples with taxable income up to 1000 and 2000 dollars respectively.
A bipartisan bill filed in the Indiana General Assembly would remove the county treasurer as ex officio city treasurer in first and second class cities and transfer duties to city controllers. Rep. Frederick T. Bauer says the move eliminates an archaic provision and improves local government checks, with co sponsor Rep. Richard A. Boehring noting demand in Terre Haute and larger cities.
President Johnson urged Congress to raise taxes to finance Vietnam costs, proposing a 6 percent surcharge on corporate and most personal income taxes to last at least two years. He claimed the measure would raise about 4.5 billion in the first year and outlined eligibility, effective date, and fiscal aims while affirming commitment to domestic programs.
Premier Chou En-lai was reported in Tokyo to pursue a three pronged effort to mediate the Mao Liu split in Red China. He aims to curb Mao's purge and confine conflict to propaganda, reverse paralysis in production and transport due to labor resistance, and negotiate a settlement of the deadly Nanking incidents that left 54 dead and 900 injured.
In Hong Kong, Harri son E. Salisbury of the New York Times says North Vietnam will not be forced to negotiate. He cites their toughness and preference for guerrilla warfare and notes Hanoi’s view of Dien Bien Phu as a guiding precedent. He doubts a military defeat would push talks.
AP dispatch reports Representative Adam Clayton Powell urged African Americans to abandon long loyalty to the Democratic party and hinted at a possible third party. He spoke to supporters on the Capitol steps after the House refused to seat him pending a committee inquiry. The crowd chanted Adam for president as Powell urged tax resistance and a new independent course. Republicans and many Democrats balked at seating him while the investigation proceeds, and a nine member committee will review his qualifications.
The Weather Bureau reports current river stage 4.4 ft and temperatures from 10 to 30s with trace precipitation. Forecasts call for sunny, cold today. increasing clouds and warm by Thursday with a chance of light rain or snow late Thursday. fair, cold tonight. Indiana and Illinois sections note gradual warming and continued cold spells with minor precipitation chances.
President Johnson denounces the race between food supply and population growth as mankind’s second major challenge after peace. He urges concerted action on a global scale, speaking to Congress on Tuesday night in the State of the Union address.
Armored U S columns pushed into the Iron Triangle from the east as the four day campaign to neutralize the jungled triangle near Saigon reports 165 American dead. B52 raids and 400 tactical air strikes pace the effort while South Vietnamese forces report 172 Viet Cong killed and 26 captured in scattered engagements. Nine Marines die in a helicopter crash near Chu Lai.
Indiana lawmakers propose a 1968 ballot referendum to decide abolition of the death penalty with a separate carve out preserving the death penalty for murders by escaped life-term prisoners. Rep. Richard D. Bell and Rep. King Telle sponsor the measure in the House.
Ronald L. Furnas withdrew his name as a party to the injunction suit opposing the sale of bonds to finance Vigo County’s proposed new high schools. Chris Bauer and Carl O. Howard remained in the suit as Warren Buchanan sought a venue change before Judge Charles K. McCrory. The hearing began Wednesday afternoon in Vigo Superior Court No. 2 to decide the case affecting the bond sale and construction plans.
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