HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.tera/taxfeaturs0010 and id is 1 raw text is: TAX FOUNDATION'S
MONTHLY TAX FEATURES
Copyright 1966 by Tax Foundation, Itc., .50 Rockefeller Plaza, New York, N. 1'. 10020
January 1966
Vol. 10, Number 1
Say Prudent
Fiscal Plan Is
Inflation Bar
As nmore fears of tiess- inflation
aIe exiuessed in tile United
Sttes, a neighbor it, the south-
litaii- pro ides ant example if
Ilr'I to a i, says Tax Foonda-
litl, lire.
Avli i yrars ago, a lira-
filiai ciu eiir, stat valred at
arliiit 5J I Ani-ncar rents; to-
dark it is '.orth about 1/25 of a
'ut un tIn' free mrnket.
i r Iris nlf 19:19 putrcl sirng
], tie. lU.S. dollar todlay is
%'Mteli II Cents. lirtween 1955
and 1965. Ih diollar lost over
15 rv-t of its Irnrclasing flower.
[.ast year, tire Foudation es-
tirratd, a $6,500-a-y-ar fandly
lost mnoc than $100 throigh in-
Ilsallon.
Vhile, to many experts, tire
clrids of irflation appear no
bigger than a affair's tand now,
tihy will hear watching iii tie
mronths to cnire, according to
tire research organization.
Onii of tile best ways to ire.
sent airy Speedip ini dollar de-
,neciatioo. says tire Foundatiro
; ) eo i hr ct tire n a tio n 's fiscal
)Imlicy prutIlently.
In illt! same vein, tile hIone-
taI y Connltittee of tIre I onionon
Malki , discussing tIe ulonetary,
fiscal, arid wage poilicy tools
(hit shlrrinid Ire ernployed to re-
sin irnlatioary trends, stggested
a littitation on government
slioirg increases.
Deficit Larger?
Dr. Artlhur F. Itrrnis, forier
Chairman of thre Council of Eco-
nirnic Advisets recently warned
tin advocates of the 'new ecu-
nnlcs' Ihat their favorite in-
stitnents of fiscal policy if
Inshlll beyond a point, Iay
il;ily bring oil irflatiot and
Iitin'llinre prosperity.
l'oslrecis of Federal deficit
tiuinitng next year aren't ex-
actly rosy, notes tIe Fotocato.
iWile the fiscal1 965 Federal
budget defict was $3.5 billion,
that for fincal 1966 is likely to
N. ' as littlcI as $7 billion. A lot
sill dependi on tire mix of
ring defense costs and costs of
new Great Society programs.
A report made before Con-
griss adjournred shlowed that 50
eitirIifates of Itltihorizatiols Or
apnopraitions, forerunners of
rettnioal spe'nding, eumulatively
w(aild cost $113 billion over a
tunee to five-year period-if all
in re approved.
The effects of inflation arid
rluctiated currency are shown
iol tire table belowv issnell Iy tile
Fit st National City Bank (N.Y.):
Isntllo it Ann55
val Rats at
ia MI T Osp til.i.t
ti54 t264 t 54.14
C.alem.la 100 o7 0.3%
Vnn Sia itO tt o1t
i airvador tOO 90 I.I
Luehnioun j 100 7 1,4
Unid Stai, tO 57 14
Conata to i6 t.S
tcuadt 100 i5 1,7
ieisn 1 n 00 4 i.7
ttetand too ta an0
Pakisian 1tO 8t 2.t
Germany IOO ai 2.1
toul Atcra tOO it 2.1
PoiEg too i at 2
PCome1 10 8. 2.2
Grssre tOO 0 2.2
unntraiia i O i 23
n . lh eia n d it o 7 8 2 ,4
t1e Zeln 00 77 ,
thailand IDo 7t 2.i
sushi. 1C 76 2.*
Jap.n 100 76 2.1
timely too 74 2.i
United Kindom iO 74 30
Philippines io 04 7 .0
Iialy to 73 3:1
Ire0and iO 73 3.1
1966 Tax Bile in the 8-Hour Day I Debt Share Rises
'raxes cost more than any other iten in the hoanehold lodget Atler-
jeans work 2 hours 19 inoutrs of every 6-hour day to ttreet Fe ceral, state
ntri local tax hills, says 'ax Foundation Inc, T'ie tine period Is one
strinute tess titan taxes took last year.
(2.coluorn ,at, avaliable u'ithout charge on request)
Palm to House
For Spending
Ilere is tile record of the $100-
billion, ten-nronth first session of
tilt' 89th Congress, tays Tax
Foundation, Inc.:
There were I.t,587 bills intro-
dluced: 11,856 in the Ilouse
2.731 i tire Senate;
Thecre were 27,618 pages of
proceeelings (15,610 io tire Sels-
ate; 11,976 in the flose) en-
tered in the Congrerrional
Record;
This doesn't inelhde tie 6,693
pages entered in the Appendix
to the Record. With the per
lage litrrting cost, $911 (est.),
tire tfill for the sessions' Record
nlight Ire as uircl as $3 itil-
lion. Tern years ago, tire cost was
osly $77 per page.
Ali estimiate made last year
(1965) hail it that every tnle
a hill is introduced in Congress-
it costs the American taxpayer
a minimunl of $22-for a two-
page bill; a four-pager costs $44;
an eight-pager, a minimuo of
About the time the first Reor-
gaization Act was launched,
(1916) Congress got 6,539 hills.
lil 1953, the first session of the
83rd Congress teceivel 10,695
bills arid, in 1959, the first session
of tie 86th got 13,847 bills. The
first session of tire 88th Congress
had 14,168 bills introduiced.
Tire first session of the 89th
Congress saw the Senate in ses-
sion for 177 days, for a total of
about 960 hours; the House for
173 days for alaout 798 hours.
uttittg tire session, $108 lill-
iOn ini tes,' spendilg anthoriza-
tims was approvei , eqiuivalent
to 610 million daily, or $112.5
million each hour by the Senate;
$62.1 nillion daily, or $135 stil-
lion air hour Iy tIe I House, the
Fourndation estnaates.
5wede0
Denmtk
India
ranre
1ran
Filand
lisal
tpain
China iTi1an)
Tinkey
Coobl
Arsentina
Chile
Boltiti
11r.1i1
100 72 3,3
IO 659 3.7
iO 0s 4.2
ito 04 4.4
too 64 4.4
ito fit 4.5
to at 4.9
ito o 4 ,
iO 53 6.2
iO 48 7.1
i00 47 7.1
to 42 9.4
ItO 37 9.,
i00 I4 17.1
itO a 22.4
100 5 24.8
ito 2 20.4
i0 4 27.6
According to soale research
for the U.S. Office of Education,
a 12-year-old soytow Catl throw
a softball ten feet farther titan
Iris 1958 countetpart, is bletter
at sit-tips artd the 50-yard dash.
lie is also cartying a heavier
load of debt than did the 12.
year-old schoolboy of 1958, says
'ax Foundation, Inc.
Today's (1965's) 12-year-old
can now do three pull-ups
against tile two of severa years
ago; 50 sit-utps as against 31 ; do
tnt. 50.yatls dash nit 7.8 itstead
of 8 seconuls, arid cas throw a
softball 120 feel rather than 110.
lie is hearing nearly $76 ttore
as ]is share of ti national debt
titan his conntetitart did itt
1958. lit tile latter year, the
natistal debt at tire end of Juite
was $271 billion and tlte boy's
(or man's o wotiian's) share of
the debt was $1,561. At tile end
of )one, 1965 tile boy's attd
everybody else's share was esti-
ttated at $1,637 since tlte na-
tinn's debt then stood at $317
Iillion.
New Style-Old Story
The Internal Revenue Service has redesigned its identification
symbol, the eagle, in contemporary style and it will appear on tie
front page of the new tax form package you and ynu and you
will get soon. The eagle may he redesigned bat tie forms, says
Tax Foundation, Inc., are--as tie Frenchuan said of taxation,
all art-designed to pluck tlte most feathers with tile least squaseks.
If collections run trite to form, 195 (t- 195) i.,
tle Federal government may cear since all (to 95l) navs
take itt as miuch as $50 hillion ixceee all te tax collectons
in itlividual income taxes tlis in tle years roml lec to 192;
yeat. . . 'S Alcohol tx collections for
iated $49 billion was collected. each year sitce 1960 have bie
greater than total collections
As evideIce of tow well frot all sotrecs itt 191 when
Uncle Sam's tax collecting sa- we were engaged in World War
chiterj, works, tile Fotndation I;
cites t lese statistics: 'lobacco tax collections aniiti-
Total Internal Revenue Ser- ally, since 1956, have been
sire collections for each year greater than total Internal Re-
since 1962 (to 1965) have ex- venue collections in 1933;
ceeried all that was collected in lax collections on chewing
the years front 1863 (when the tobacco and snuff in 1964 equal.
Service began) to 19,11; led attost half of total IRS
Total tax collections for each 1863 collections.
DRILL. A day's drilling to &
find out the colpositon of
Earth's center+-Natiooal Science -
Foundation's Project Molile-
trill cost an estimated $22,000;
maybe $24 million will be spent 0
before a center core is brought
up by a mid-ocean drilling rig
sonmetite in 1968. TIre NSF q ,'
originally estimated the whole
project's cost at $19 million -
now it's about $100 millio, a
sre equal to all tie Federal loss from all operation in tile
indlividlual income taxes collect- Jo ly-September 1965 period,
ed from 1.1 million four-person $1.2 billion, if parceled ott
families earning $7,500 per year. atong Americans, would centi
* * * to $6.19 per titan, wotnan arid
DOWN. Tine origirally.esti- child. In tire satne ltree-tnnth
mnated $49 millior cost of Proj- period in 1964, C('s total net
el Afohole--a National Science loss was $1.1 billion. At the end
Foutdation plan to drill a hole of the quarter, total U.S. invest.
in the ocean's bed to find out rent in farm price-supllort loans
what Earth's center is tiade of arid inventories was $6.2 billion.
-ray now go up. A barge carry. It was $6.9 billion for tle same
ing 337 torts of drilling equip. period in 1964.
srert (including diartorrd bits) * of
valued at $100,000, sied in a FOOD & TAXES. The na.
Atidway Island project related lion's food bill, says one Federal
to Mohtocl, was recenthl aban- goverment departirent, Agri.
doned at sea. The ship towing culture, will hit $86 billion this
the barge cut it loose when it year, or $439 for each strati,
appeared the barge would sink teotan and child. Tax Founda.
and endatger tihe ship. tion, Inc., estimates that Federal,
* * * state atrd lo,:al taxes per nan,
SUPPORTS. The Commodity oonran and child itt 1965 were
Credit Corporation's total net nearly ttice as truch.-$851.
'Green' Sees
Uncertain Tax
Future in '66
Charlie Green, a fairly rellre-
sentative citizen, is a bit baf-
fled as lie arid thousands like
him heer into all tncertain nri r
year's tax fututre, says Tax
Foundation, Inc.
Onr iriagiary Clat lie kniws.
for exailie, that an Iifi6 trns,
aliost $2.00 rore n'r veek is
being dedcted frr his lnay.
cneck for social sectnity InedI
nledclare ilprpows. Out of trio
$10,000 annual salary ill 1965,
Charlie paid $171 io nocial
sectsrity levies. Nv fil tol al
F.I.C.A. (Federal Insurance
Contriliution Art) paymnent
will be $277.20 to Charlie - or
anybody else earning in excess
of $6,060, the new lnaximum
under the Act passed ii 1965.
The foriner maxirmno was
$4,800.
Jill 1955, wle Charlie. ofna-
rel aid (lie fatheir of two
school-age children, was earn-
ing $6,800, lie paid but $81 for
social security.]
This nians, says tire Fornda-
lion, that Charlie'll te statihng
1966 not as far ahead if fie
gare as ie thought led Ire
ivien til' last Federal inlividual
incotre tx cut went ito elfict.
Ii 1961,' Charlie's indivilal
Federal inoinre tax was $978
as a result of tIre serrond ,ia
of tile tax cut--aboat $711 lisq
in U. S. tax lian lie previoldy
paid.
Will Be Worse Off
lHell be $25.20 worse off in
1966 since his OASI (Oli-age
and Survivnr's Insurance) pay-
steats will increase, while his
salary aid tax pl'3Ielits re-
strain the saine, says I/ie Folnda-
ion.
A not unlikely tl arid take
effect may Ie felt on a nation-
wide Iasis luring 1966, says tire
research organization. Increasel
Social Security revenues, $5 bi-
lion, will more than offset tire
excise tax tevenie loss.
Overall, there may be some
$1.7 billion added cut in taxes
as the 1966 effect of tire excise
tax cuts of 1965 begin to iake
themiselves felt, e.g., flight clubs,
telepnone, ito parts, etc.
But if pro iosait to change
the ufernlploynlent conprnsa-
lion laws are passed and go into
effect in 1966--an allitial
$60 million load %,-fluld be put
otl fll!e nation's reotloycrs.
Assiming the passage of tire
ineiploynment Comrpensation
proposals, tIre 1966 score then
might Ile:
Tax Hikes: $5.1 billion
Tax Cuts: $1.7 billion
Increase: $3.1 bill. (est.)
Arid now there is talk of a
new Federal tax increase to help
finance the Soulth Vietllal st.ar.
Back to Charlie. lie kiows
that since Ilis state is one that
in 1965 adopted new taxes ror
increased existing levies, adling
an estimated $1.3 billion per
year to total state res'enrer', he'll
have to figure how ie fits itoa
the picture.
Charlie's state hiiked the tax
on cigarettes by 5 cents a park
bringing Iris state tax cost of
smnking to $73 a year. In 1955,
his annual tax ott cigarettes svas
$21.70, says tile Fonlation.](ViewImageLocal?handle=hein.tera/taxfeaturs0010&div=1&collection=&method=preview&ext=.png&size=3)