October 26, 1972
McGovern Economic Program
The McGovern economic
program calls for a balanced
full-employment budget. By
1975 -- at full employment - tax
revenues would equal the cost of
government programs. This
would allow the new McGovern
proposals (property tax relief,
jobs, etc.) to be funded in a
responsibile and non-inflationary
manner.
The McGovern program for
1975 would provide $54 billion
in revenues, 60% from cuts in
the military budget, and 40%
from tax reform. This is more
than enough to finance the new
proposals made by Senator
McGovern to meet priority
domestic needs.
The military budget would be
cut by $lO billion in each of the
next three years without in any
way reducing our nation's
security. By 1975, the cuts
would add up to $3O billion.
The tax reform proposals would
raise an additional $22 billion
from corporations and from
individuals of substantial wealth.
No American whose income
comes from wages and salaries
would pay more in taxes.
Last Spring, Senator
McGovern proposed a beefed-up
minimum tax as a means of
getting at loophole income, and
making the tax system more
equitable. Since then, Senator
Mansfield and Chairman Mills
have introduced legislation to
review the whole range of special
tax provisions Therefore, it now
appears that the most effective
tax reform strategy is to press
for the removal of certain
specific tax loopholes.
The McGovern tax reform
program would:
-- phase out the corporate tax
provisions which no longer serve
a useful purpose. This means
repealing the accelerated
depreciation allowance of 1971
and setting realistic depreciation
guidelines. It means revising the
investment credit to assure that
after 1975 it will be designed to
reward only increased investment
that would not otherwise be
made. It means disallowing
special tax breaks to
corporations merely because
they earn their income overseas.
-- phase out the capital gains
loopholes. At present, rich
individuals can escape taxation
on much of their increased
wealth from the stock market
and from property. They can
avoid even more if they pass it
on to their heirs at death. These
LENKER
CYCLE
SALES
Motorcycles
New and Used
All Makes Repaired .
Bicycles Repaired
Official Inspection
515 Rosedale Avenue
Near Olmsted Plaza
Middletown, Pa.
Phone 944-4256
special tax preferences would be
ended, while at the same time,
more generous averaging
provisions would be provided.
-- phase out the special
preferences for the owners of
oil, gas and other natural
resources.
phase out loopholes for
certain kinds of real estate
development, as we phase in a
system of direct assistance for
needed housing construction.
--encourage states and
municipalities to close the
tax-exempt bonus loophole by
offering a federal subsidy of 50%
of the interest cost of taxable
bonds.
--replace estate and gift taxes
with a single accessions tax.
There would be a progressive
rate structure to prevent the
increasing concentration of
wealth in the hands of a few. At
the time, this structure would
protect the right of Americans
to leave a fair share of their
property to their heirs, and
would allow exemptions for the
inheritance of a spouse, and for
wholly-owned family
enterprises.
Finally, the McGovern
program includes a reduction in
the top bracket individual tax
rates. Today, the tax rate for the
top bracket is 70%, but this rate
is a fiction. Because of tax
loopholes, personal income taxes
do not average more than 32%
on even the very highest
incomes. The McGovern
program would phase in an
effective maximum tax rate of
48% on both earned and
unearned income as we phase in
full taxation of capital gains.
The revenues saved through
Bug
Ea rly )14 Specia
Pre Winter Tune-Up
for
your VW
1932 plus tax
600 d thrum Oct. 31,1972
O'Brian Auto, Inc.
Authorized SAAB Dealer
Lebanon Valley Shopping Center
Palmyra, Pa. 17078
Phone 838-1346
John Hershey, Gen. Manager
Capitol '7l
THE CAPITOLIST
cuts in the military budget and
reform of the tax system would
fund a long list of badly-needed
programs, such as the McGovern
property tax proposal, and the
McGovern alternative to the
present welfare system.
McGovern Administration
would channel $l5 billion to
local school systems, allowing
quality education and property
tax relief at the same time. In
this way, the federal government
would assume one third of the
costs of public elementary and
secondary education.
In earlier statements on the
welfare problem, Senator
McGovern set forth general
principles for reform of the
present welfare system, and
discussed a number of
alternative plans. Now, he is
proposing the following specific
steps, which would cut the
welfare rolls by 30%: first, a
million jobs in public service
employment for heads of
households who would
otherwise have to apply for
welfare; second, an expanded
Social Security system to
include 3 million aged, blind and
disabled who would otherwise
be on welfare, and an increase in
the minimum Social Security
benefit to $150; and finally, for
those remaining on welfare
(largely women and children
unable to work) an annual
minimum of $4,000 in cash and
in food stamps for a family of
four.
The McGovern program also
calls for full federal financing
and administration, lifting the
burden of welfare off the backs
of states and localities.
Black Cultural
Arts Center
by Evon Golphin
CHECK IT OUT! The
B.C.A.C. is the Black Cultural
Arts Center.
The B.C.A.C. has existed at
Capitol Campus since 1970 but
surprisingly few people are
familiar with its purpose.
The Black Cultural Arts
Center's purpose is to house
information relating to the Black
Experience be it political,
socialogical, religious, historical
or cultural, or expressed through
music, dance, speech, literature
or arts forms.
Basically, the Cultural
Committee of the Black
Students Union has been
responsible for the maintenance
and development of the
8.C.A.C.. However we welcome
input from all of the Capitol
Campus Community (Students,
Faculty, and Staff). The B.S.U.
invites you to think of it not
only as a BLACK RESOURCE
CENTER but a place where all
students may develop new and
perhaps different interpersonal
relationships and where they
may participate in forums,
symposiums, lectures or cultural
programs.
The B.C.A.C.
All are welcome.
Located at W-132
Open from 8:00 p.m. to
9:30 p.m. daily except
week ends.
** * *
•FOR SALE: 1971 Gremlin, many NEEDED: Home for cat. Female;
extras $1,775. Phone 944-6897 or black with white spotting. Phone
write 1053 North Pine St., 944-1939.
Middletown, 17057
*FOR SALE: VW winter treads with
wheels excellent condition.. Make a
*FOR SALE: Kawasaki Mach
reasonable offer. Contact Dr. Lear, phone 233-3045.
W-257, phone 787-7952.
•• • •
OPEN 9 TO 6 DAILY, FRIDAY NIGHT 'TIL 9
Birthstone
of the Month
October ... The Opal Month
You may be Libra, the fair-minded or a clever,
Scorpio schemer, but the Opal is October's
birthstone. No matter what your sun sign,
come see our collection of beautiful synthetic
birthstone rings, fit for royalty at
pin money prices.
$9.95 to $59.95
Royal Jewel Box
....t 3 USE OUR CUSTOM CHARGE PLAN,
MASTER CHARGE, BANKAMERICARD OR LAYAWAY
Get Acquainted
All area Jewish college
students - from Bucknell,
Dickinson, F & M,
Gettysburg, HACC, Penn
State and Shippensburg
State are invited to a get
together over bagels and
lox.
The brunch will be held
this Sunday, October 29 at
11:00 a.m. at the Jewish
Community Center, Front
and Vaughn Sts.,
Harrisburg. The cost will be
50 cents. If you need
transportation, a group
from Capitol will leave the
front of the Main Building
at 10:15 . . Pass the word
along.
DRUG ANALYSIS
SERVICE
The Head Shop has started a
FREE, anonymous drug analysis
service. If you come across any
unidentified pills or powders,
put them in an envelope with a
distinguishing mark ( Any
symbols, numbers or letters.)
Then drop it off through the
dryer exhaust chute at 835
Nelson Dr., Meade Heights, any
time of the day or night.
Five days later, call the Hot
Line at 944-1033, describe your
envelope and you will be advised
of its contents. Those of the
Head Shop wish that you take
advantage of the offered service
if and when you need it.
Classified Ads
FOR SALE: Skis & boots (size 12)
Good Condition. Phone 944-0339.
•• • •
Olmsted Plaza
'Par 5
Brunch
IMEEEI