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University Daily Kansan Tuesday, Jan. 15, 1963
Tax Cuts Boost Revenue
President Kennedy is at the table with Congress again, and this time it looks as though he will be the dealer.
The issue to watch is President Kennedy's tax cut proposals. This is something that goes far beyond political speeches and high-sounding theories. This is money in the taxpayer's pockets, and Congressmen already have chosen their weapons for the coming battle.
Most of those opposing the tax cut proposed by President Kennedy are not categorically opposed to cutting taxes. They want tax cuts all right, but not unless the cuts are accompanied by parallel cuts in federal spending. They believe the national debt already is too high, and they certainly do not want it to soar higher.
The esoteric aspects of deficit spending will not be discussed here. The real question is whether Kennedy's proposed combination of tax cuts and federal spending necessarily must result in greater deficit spending.
Some of those who favor the tax cuts say the opposite is true. Their argument is that in the long run cuts will increase public spending, increase capital investment and generally stimulate the economy enough to keep the volume of federal tax revenues at the same level even though the tax is less in terms of percentages. Twenty-five per cent of $2 billion profit provides just as much federal revenue as 50 per cent of $1 billion.
This sounds wonderful on paper. But does it work in practice? In one case it has worked—
quite well as a matter of fact. The conditions in this case are not exactly the same as those in the United States, so the case does not prove that the theory WILL work here. What the case proves is that the theory CAN work.
The case in question concerns the economy of Austria. Austria has had four tax cuts since 1954, and every cut boosted government tax revenues as well as the general economy.After the first tax cut, in 1954, government income rose 12.4 per cent and the gross national product increased 14.7 per cent.
In hopes of getting the same results, the formula was tried again in 1955. This time government revenue went up 8.7 per cent and the gross national product increased 10.1 per cent. A third tax cut, in 1958, pushed government revenue up 6.8 per cent and boosted the gross national product 6.2 per cent.
With three wins and no losses, Austria is trying for a fourth this year after a tax cut effective in July, 1962. The Austrian ministry of finance predicts a 10.7 per cent increase in government revenue tax and a 6.4 per cent increase in the gross national product.
Tax cuts in the United States may not produce such spectacular results, because conditions are not exactly the same here. But an opportunity to adapt a theory that has proved so useful in Austria cannot be overlooked. This may be the key to revitalizing the U.S. economy, and as such it certainly deserves a trial run.
Dennis Branstiter
Biography
The Road to Liberty and Death
(Editor's note: SyLVanus Olympio was the pro-Western president of newly independent Togo. Rebels assassinated him Sunday and left his body on the steps of the U.S. embassy in Lome.)
By United Press International
As a young man, Syllvanus Olympio's only ambition was to become a successful salesman for an African trading firm.
At that time he scarcely could
have envisioned that in years to come he would;
- Be jailed on two occasions for his political views.
- Be hailed by the president of the United States as one of Africa's great leaders.
- And finally, at the age of 60, he shot to death by assassins. Olympio was a reluctant politician; one who, as a youth, was not stirred by the revolutionary fires which later changed his life. It was, in fact, the
conservative world of business that first attracted his interest.
IN HIS LATE 20s, he joined the United African Co. and in 1938, at the age of 36, became its director—the first African to achieve that high a position in the British firm.
It was around that time that, during his business trips through Togo, he began dabbling in politics. Once absorbed he acted quickly and formed the Comité de l'Unité Togo-laise.
Worth Repeating
"Those who do not understand universities and those who do not love them, should have nothing to do with them."—Homer P. Rainey
LITTLE MAN ON CAMPUS by Dick Bibler
"DON'T GET THI IDEA THAT I DON'T WANT YOU IN CLASS
ITS JUST THAT I HATE ALL FRESHMAN."
Upon his release from prison, Olympio grew increasingly conscious of his role as a leader of his people. Still a businessman by day, he now was a revolutionary at night and swept through his small country delivering fiery speeches in favor of Togo's independence.
Subtle strings were pulled and Olympio found himself promoted "upstairs" with the United Africa Co. — to Paris. He went along with the transfer, but it was not long before he realized he had been "exiled" with a minimum of fuss.
The new party's first action was to condemn the World War II Vichy regime in France, a move that promptly landed him in jail.
From Paris he sent his salary back to Togo to finance the anti-French revolt. Eventually the company gave him a choice: position and security with the company or an uncertain future with his country.
IN 1950, THE FRENCH governor of Togo faced a difficult task: how to ease Olympia out of the country without inflaming his followers.
OLYMPIO EVENTUALLY FORGIVE his former enemies. When Togo celebrated its independence in 1960, Olympio thanked Germany, which once occupied Togo, for bringing modern civilization to the country. He also praised French President Charles de Gaulle as the first French leader to understand that the old in Africa must give away to the new.
Olympic did not hesitate, and upon his return, thousands of Africans hailed him as liberator. In 1954, the French jailed him again, this time on tax evasion charges.
One of the high moments of his career came last March when he visited the United States and was given a ticker tape parade up lower Manhattan's celebrated canyon of heroes.
It also was on that visit that President Kennedy paid tribute to Olympio as one of America's great hopes in Africa.
Ponderables
Syndicated Pundits Spoon-Feed Public
For a short time it appeared that modern science was going to serve only the body and leave the mind to its own devices.
Cake mixes have banished the measuring cup from the kitchen, instant coffee has devalued the perculator, and pre-mixed martinis threaten the prosperity of bartenders.
ALL THESE ARE LAUDABLE achievements that have helped free man from the drudgery of mixing cakes, perculating coffee, and measuring gin and vermouth.
But they have gone too far. We are threatened with ready-mixed opinion.
The threat is everywhere. Disc jockeys give us a "comprehensive" report of world news in five minutes; Time magazine boils the fine nuances of truth down to a few catchy phrases, and Huntley and Brinkley give us a visual summation of the world events on a few short film clips.
IT IS AS IF LIFE. Truth and Reality could be expressed mathematically, fed into a computer, and then all that is left to procuring Universal Understanding is reading the answer sheet.
But, of course, the sophisticates of mind and reason will have none, thank you. They demand their information from primary sources such as the State Department Bulletin, the New York Times and Poor Richard's Almanac. They go to the horse's mouth and then, after carefully weighing the facts, draw their own conclusions.
Or so it would seem.
But, these independent thinkers have an Achilles' Tendon which shows itself during an exchange of opinions.
YOU LEAD WITH YOUR CHIN by flatly stating your opinion. They counter your facts with facts of their own, and so it goes for awhile.
But, when it appears that you refuse to be swayed by their points of contention, they deliver what they are confident will be the telling blow in the intellectual exchange.
They appeal to common sense and rationality by whisking in the hallowed opinion of the most revered authority—their favorite syndicated columnist.
NOW, TELL ME, JUST HOW in the world could a rational, reasonable person continue to persist in holding onto ideas that are not in line with the opinions of Walter Lippmann and James Reston?
This is not meant to suggest that Lippmann and Reston have nothing of value to say. They have access to information and public officials that the masses do not.
But to have their opinions thrust into a debate as The Final Word is too much.
During the Cuban crisis, it was suggested that a partial naval blockade might be available. This suggestion was hooted down as being preposterous. Only a complete fool would hold such a view.
Why? Hold onto your cup of instant coffee, the reason is laughingly obvious. It is ridiculous to suggest that a partial naval blockade might work because James Reston said that a naval blockade would be an act of war.
Did this foot-in-mouth posture slow down the fan club members from continuing to insert the opinion of their pundit into the argument when facts alone fail to hold sway? Not for a minute. Every day we hear it said that something is true because Walter Lippmann said it is true.
WELL, THE UNITED STATES did blockade Cuba and, James Reston not withstanding, we did not go to war.
It is strange that men who find the Bible something less than completely satisfactory and the Koran overly optimistic should accept the word of the Pundit without question.
There is a song which states, "happiness is just a guy named Joe"; perhaps if the idolatry of the Pundits and other revered authorities continues, the ditty can be changed to read, "truth is just an opinion written by Reston."
—Terry Murphy
Daily Hansan
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NEWS DEPARTMENT
Rayne Managing Editor Richard Bonett, Dennis Farney, Zeke Wigglesworth, and Bill Mullins, Assistant Managing Editors; Mike Miller, City Editor; Ben Marshall, Sports Editor; Margaret Cheartc, Society Editor.
EDITORIAL DEPARTMENT Clayton Keller and Bill Sheldon
BUSINESS DEPARTMENT
Co-Editorial Editors
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Business Manager