Masonry Magazine October 1968 Page. 12
Washington Wire
(Continued from page 11)
money will no longer be a limiting factor on homebuilding. The absorption of money by home construction will keep the rates on mortgages from declining as fast as other credit-for which demand will be lighter. Still, money market men are predicting a dip of perhaps one-half percent by spring.
INDUSTRIES HARD-PRESSED BY IMPORTS ARE GETTING HELP from Washington in the form of more vigorous enforcement of existing laws. The government has been unwilling to raise tariffs or expand quotas. In fact, it has been eager to reduce barriers in multilateral negotiations with other countries. But when other nations try to unload their goods here at subsidized prices, the U.S. government has moved forcefully to help defend American producers.
For one thing, Washington has entertained a rising number of anti-dumping complaints from domestic industry and is acting on them. Further, the U.S. has been imposing countervailing duties on several unfairly competitive items namely French.
There are guarded rumors going around Washington about the likelihood of a break toward peace around the turn of the year. Some say that, once the election is over, Hanoi will no longer have any reason to stall and will permit serious negotiations. Others insist that the President will modify the U.S. position. So far, there's little to either story.
THE COMPLEXION OF THE SUPREME COURT MAY BE CHANGED significantly by the election-especially if Richard Nixon turns out to be the final winner. The shift would not come about automatically. The Justices serve for life. But age is bound to take its toll. Chief Justice Earl Warren will keep on serving for a time. But he is 77. Few will be surprised if he quits soon. Justice Black is 82. Harlan and Douglas are both 69, with health problems.
The next President, then, could appoint as many as four new Justices almost a majority. Nixon would name men who are less activist, less tough on business. There would be only one vote needed from the remaining five Justices to provide a working majority of noticeably more conservative cast.
A PROGRAM FOR TAX REFORM WILL BE PUSHED by the President as one of the final acts of his Administration. He will conform to the mandate of the Congress incorporated in the key surtax bill-and have a program ready by January. Any such recommendations are certain to be controversial and to face a long review by Chairman Mills and his Ways and Means Committee. It is doubtful that any bill would finally pass both Houses before 1970.
One proposal likely to be included would require all those with large incomes to pay some tax-regardless of whatever shelters for which they can otherwise qualify. But there'd be no frontal attack on such things as depletion allowances.
Other provisions that may yet be included would be estate and gift taxation, the treatment of capital gains on assets at death, and perhaps the tax exemption of state-local bonds. There will also be proposals to end itemized deductions for, say, interest-in favor of one single standard deduction.
BE PREPARED FOR CONTINUATION OF THE 10% SURTAX beyond next June 30 its automatic expiration date. The new President will want to let it run off if the war in Viet Nam is winding up. But if it isn't, the inevitable increases in already authorized spending programs would generate dangerous new inflation-unless the higher taxes are kept to hold the deficit down. Note that Ways and Means Chairman Mills has predicted-several times that a serious effort would be made next year to keep the surtax on the books.
WASHINGTON FORESEES TROUBLE FOR INDUSTRY in the new Labor Alliance the Auto Workers' Walter Reuther has been forging since he quit the AFL-CIO. The Teamsters, Chemical Workers and Mine Workers are joining the new group. It numbers only 3.5 million, as against the old Federation's 14 million. But it has a very activist bent, and will be eager to increase its strength.
This could lead to stepped-up organizing efforts and painful conflicts of jurisdiction which could degenerate into plain old-fashioned raiding. As has happened so often in past periods, management may be caught in the middle once again.
Some unions may have to make a hard choice between the stable AFL-CIO and the new outfit, which is led by men who have been free with help in the past. The Rubber Workers, for example, are pondering taking the critical step these days.
A NEW STUDY OF AUTO INSURANCE COULD LEAD TO BIG CHANGES in the way damage victims are treated. Congress gave the Transportation Department money to look into the auto insurance field. Ending the question of who is to blame for an accident is a key issue. One proposal would pay all claims regardless of who is at fault. Repair and medical bills would be met, and there would be big savings to help pay claims by abolishing litigation.
The Study will require more than a year. Its conclusions, when ready, are certain to be controversial. But both the public and the industry seem likely to benefit in the end.