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Tax Cut Puts $4-5 Into Pockets Weekly
WASHINGTON, — (UPI)— A $11.5 billion tax cut, designed to put an average of $4 or $5 more a week into pockets of most U.S. wage earners this year, begins taking effect next week and President Johnson wants Americans to make the most of it.
One year, one month and two days after the late John F. Kennedy's urgent appeal, the Senate put the final stamp of approval on the biggest tax cut in the nation's history by a 74-19 vote with generous Republican support.
Even before the ink was dry on the landmark legislation yesterday, it had performed its first feat, spurring the stock market to its best gain in two weeks.
JOHNSON PROMPTLY signed it into law at a White House ceremony, then told a nationwide radio-telvision audience that it would strengthen the United States by bolstering the economy when U.S. taxpayers and corporations start spending the extra cash.
"No one can bury us—or bluff us—or beat us—so long as our economy remains strong," said the President in an obvious reference to Soviet Premier Nikita S. Khrushchev's oft-quoted promise to "bury" capitalism.
For his part, the Chief executive promised to make new inroads against federal spending, including a new goal to eliminate an additional 7,500 government jobs "in the very next few months."
WHILE JOHNSON forecast gooq days ahead, the Internal Revenue Service (IRS) announced that some workers should notice the first effects of the tax cut March 5. That is when a lower payroll withholding rate goes into effect, meaning higher paychecks.
The new law, along with private initiative and creative energy, will help "build a nation whose strength lies in our program for prosperity and our passion for peace," Johnson said.
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"THE FIRST effect of the cut will be to put billions of extra dollars into the hands of the American consumer. As you spend this money at the grocer's or in the department store—the grocer and department store owner in turn will spend it for their own needs—and, in this fashion, the money will circulate through the economy raising the demand for goods several times the amount of the tax cut," Johnson said.
"The same is true of the more than $2 billion which businesses will no longer pay in taxes. They will use much of this money to buy new machinery, for new construction, for goods of all kinds—and most importantly, for the creation of new jobs," he said.
dollar they earn. If they do, they will pump an extra $27 million a day into the economy by spending most of their tax gains.
Treasury officials are counting on Americans to follow their usual practice and spend 93 cents of every
WHEN THE measure becomes fully effective next Jan. 1, Americans will get an average tax cut of 19 per cent, or a total of $9.1 billion a year in tax savings. The eventual tax relief for corporations will be $2.4 billion a year, with most of it going to smaller businesses making $25,000 or less
The IRS said it would follow a "rule of reason" in enforcing the March 5 changeover. "We will not find fault with employers who are delayed a day or two in putting the lower rate into effect by problems encountered in converting their payroll systems," a spokesman said.
Johnson called the tax cut "an expression of faith in our system of free enterprise."
THE PRESIDENT obviously was pleased at the election-year bonus, but he noted early in his broadcast that the measure was "inspired and proposed by our late beloved President Kennedy" and passed with bipartisan support
Kennedy had urged Congress in early 1963 to enact a tax cut as a means of stimulating consumer spending and investments, creating more jobs and averting a recession by pushing the economy to new highs of productivity.
The tax cut does not apply to income earned in 1963, on which federal taxes are due by next April 15, the regular filing date.
Der deutsche Verein triff sich am Donnerstag, den 27. Februar, um 4 Uhr im Restaurant uber Aberterbendendox aus Venezuela wird zu uns sprechen. Es gibt auch Erfrischungen.
Official Bulletin
Latter-Day Saints Institute of Religion, Pan American Room, Kansas Union.
Student Peace Union, 4:30 p.m., Sun flower. Room, Kansas Union.
TODAY
Memorial Catholic Mass for Henry
Wilson, 1910 St. Lawrence Chapel.
Narford Road.
Kappa Phi, 7 p.m., First Methodist Church, Formal pliding.
Christian Science Organization, 7.30 p.m., Danfort Chapel. Everyone wel-
Christian Family Movement (CFM), $ p.m. St. Lawrence Center.
College Life, 9 p.m. Meadowlark Room, Kansas Union. Two collegians speak, and Jim Hiskey, Midwest Direct Campus. Crusade for Christ will give message.
Episcopic Evening Prayer, 9:30 p.m.
Danforth.
Catholic Masses, 6:45 a.m. 5 p.m. St.
Lorenzo Chapel, Lenten Instruction
at 5 p.m.
TOMORROW
Mathematics Colloquium, 4:30 p.m. p13
Mathematics Institute of Technology,
Bounded Sequences" - Dr. Arlan Ramsay,
Massachusetts Institute of Technology.
7:30 p.m. 917. Highland, Refreshments:
University Daily Kansan
35c
Feature Times: 7 & 9:30 p.m.
Fraser Theater
FRIDAY FLICKS
VI 3-9669
Freshman Women To Slave In SMOP Work Exchange
Saturday afternoon KU freshman women will become "slaves" for each other in an effort to raise money for scholarship funds.
Half of the women at North College (Gertrude Sellards Pearson Hall and Corbin Hall) will join with freshman women from Douthart, Watkins, and Miller Halls to work for the other half of the women at North College from 1:00 until 2:30 p.m.
Beginning at 2:45 p.m. the buying half of the freshman women will become the working half and the working half will become the buying half until 4:15 p.m.
CHECKS ARE A DOUBLE CHECK
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or Lawrence
8th and MASSACHUSETTS
SALE ENDS SATURDAY
LAST 2 DAYS
the university shop's
FINAL REDUCTIONS
● Suits ___ 1/2 price
● Sweaters ___ $7
● Jackets ___ ½ price
● Sportshirts $3
- Dress Slacks ___ 1/3 off
- ● Sportcoats ___ 1/2 price
- Wash Slacks $2
● Sport Hats ... $1
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