Al2—Lancaster Farming, Saturday, June 20,1981
OUR READERS WRITE
(Continued from Page A 10)
will continue to be faced with ever
higher inflation and declining
productivity.
It’s against this back drop that
we believe the arguments against
the proposed tax rate reduction
must be evaluated. In short,
“business-as-usual” tax policy
must be replaced by fundamental
changes, if we are to regain long
term economic health.
Arguments against such changes
in tax policy vary from the “timing
is bad” to “it’ll be inflationary” to
“the budget isn’t balanced.” '
The “tune is bad” argument is
one that has really never been
raised about the “timing of federal
spending”. Timing is never right
when it comes to taking tough
economic medicine.
Will the time be nght m 1985
after taxes go up another $2OO
billion? To say that now is not the
nght time to say that the tax
structure is now at an optimum
level and the changes proposed
would leave individuals worse off.
Most economists agree the present
tax rate structure is not an optimal
one.
The “it’ll be inflationary”
argument is not defensible since
only a part of the tax reduction will
be added to the deficit. Federal
deficits, in and of themselves, are
not inflationary.
Germany and Japan have had
substantial deficits but the central
banks in these countries impose
strict disicpline on money supply
growth. The Administration
continues to encourage the Federal
Reserve not to inflate the money
supply to accomodate the deficit.
Both of these international com
petitors have substantially higher
productivity growth than the
United States.
The “budget isn’t balanced”
£ IX
THROUGH
TELMARK AGRI-LEASE.
From a Building to a Baler...
Almost any kind, any make, any model of durable equipment or farm
machinery, new or used, can be leased through a Telmark Agri-Lease.
Telmark, the leasing subsidiary of Agway Inc., is dedicated to serving the
agribusiness community.
The highly qualified Telmark staff can provide fast service to meet
your leasing requirements so you will be able to take advantage of op
portunities as they arise. A Telmark Agri-Lease can improve your cash
flow and save your operating capital. You avoid large down payments
required with some other forms of financing.
Give us your requirements and we’ll give you a proposal covering
terms and lease payment schedules. Contact your
Agway Salesperson or call or write: Telmark, Box
2323, Harrisburg, PA 17105 (717) 564-6587.
argument is hollow m light of the
unbalanced budget in 20 of the last
21 fiscal years. An unbalanced
budget that accommodates more
and more federal transfer
payments is fundamentally dif
ferent from a deficit which returns
money to the savings pool for
future capital investment in
productive economic projects. The
latter is more likely to be
eliminated over time. The former
is more likely to require larger
future deficits.
Under our present system, the
budget will never be balanced
because Congress will always find
reasons to spend. There will
always be the threat.of either
economic recession or economic
boom.
The proposed tax cut would be a
contract with the American people
to alter the spending question from
“How much money can be
shoveled out the door via direct
taxes and the inflation tax? to
“How should Congress spend the
limited amount of money the
taxpayers allow them to spend?
It is somewhat ironic that this
round of the tax policy debate the
burden of proof has been placed on
those who support 10-percent
reduction m tax rates for a three
year penod. This is a substantial
challenge.
Our economic history has not
been exactly filled with tax rate
reductions and therefore there is a
shortage of facts to support the
policy initiative. The historical
record has been one of increased
taxes and spending. The results of
these policies are apparent to
almost everyone ever-higher
inflation and ever-lower national
productivity.
Recent economic data have
caused opponents of the tax part of
the Economic Recovery Program
to claim that things are getting
better and that maybe it is tune to
ease up on all the unpleasant talk
about budget restraint and tax
reductions. -
It is undoubtedly satisfying to
hear that consumer prices rose in
April by only 0.4 percent, par
ticularly since the April figure
followed the favorable 0.6 percent
increase m March. But, beware,
we have been down this path
before.
In 1976, when the inflation rate
moved from 13 percent to less than
five percent, there was a
relaxation in the battle against
inflation and government spending
was increased to combat the
pending recession. We were back
to “business as usual” by focusing
on short-term economic in
formation rather than the long
term adverse economic trends.
We know what happened to in
flation after the government
spending spree between 1976 and
1980. Policymakers had, once
again, underestimated the per
sistence of inflation and the need to
make the tough economic policy
I * ,
Long-term policies are essential
to reverse the inflation and
declining productivity trends that
plague the economy. The tax part
is the heart of the overall economic
policy package.
The proposed three-year
reduction in income tax rates is
directed at creating new wealth
and increasing future savings. It is
directed at increasing the ef
ficiency of all resources and im
proving the quality and quantity of
the overall work effort. It is aimed
at establishing incentives to work,
save, and invest among individuals
and businesses.
The economic recovery package,
including the tax report, is not
without risks. There is a risk that
the Federal Reserve will continue
to inflate the .money supply. There
is a risk that the federal spending
reductions agreed on by Congress
(Turn to Page A 29)
Farm Calendar
Today, June 20
Lancaster County Dairy Princess
program, Lancaster
Beaver-Lawerence, Perry, and
Susquehanna Dairy Princess
pageants
Chester County Country Fair,
Nottingham Park, 11 - 8 p.m.
Seven Valleys Farm Tour, 10 -4,
Seven Valleys
Tuesday, June 23
ThomasviUe Community 4-H club
meeting, York County 4-H>
Center, 7:30 p.m., Program;
June Dairy Month by Central
Dairy 4-H Club
Lebanon Oil Gas Leasing meeting,
Municipal Building auditorium,
7:30p.m.
Wednesday, June 24
25th Annual Md. Wool Pool, starts
Now Is The Time
' (Continued from Page AlO)
There is no herbicide that can be now is a good time to clean up your
used without killing all the com. gram bins in preparation to har-
On tilled or minimum tilled, the vest.
cultivator can be used to kill the
plants between the rows. On no-till
there is no means of eradication
except the hand hoe. The larger the
com becomes, the less you’ll want
to cultivate because of root
pruning-. We are again back to
using the hoe.
All this volunteer com growing is
a reminder that part of our 1900
crop was left in the field.
To Prepare Grain Bins
We are approaching barley
harvest season with wheat not too
far behind, so I would like io
remind our grain producers that
Agri-Lasej.
at 12:30 p.m. to 3:30 and all day
Thursday, 7-3 p.m., Timonium
fairgrounds
Berks gas, oil lease meeting,
Kempton Rod and Gun Club, 3
miles north of- Lenhartsville,
Rt. 143,8 p.m.
Friday, June 26
Lycoming County Dairy Princess
pageant, 7:30 p.m., Lycoming
Mall, Route 220.
York Farmers Forum, 7 p.ra.
Rutters Restaurant.
Saturday, June 27
PA Holstein Assn. State Sale
Eastern Regional Jr. Angus Heifer
Show, Montgomery County
Fairgrounds, Gaithersburg,
Md.; concludes tomorrow
PA Red Cherry Showers annual
meeting, 6:30 p.m.. Lamp Port
Restaurant, Gettysburg
PA Polled Hereford Assn, field
day, JDH Farm, Dover, 104
p.m.
First, clean out all the old grain.
Sweep down the sidewalls and floor
making sure to remove old grain
lodged in the cracks.
Next spray the floor and walls
with a residual insecticide.
Malathion of Methoxychlor are
still very effective follow the
label for directions.
Finally, prevent birds and
rodents from entering the bin.
Repair holes with metal or other
rat-proof material. Clean up all
spilled grain around the bin to
discourage the various pests from
the area.
*