Masonry Magazine January 1969 Page. 51
Washington Wire
(Continued from page 20)
more because incomes will be growing, even if profits do not zoom again. But dropping the surtax would convert a healthy surplus, the second consecutive one, into a dangerous deficit once again.
TO BE SURE, NIXON HOPES TO USE TAX CREDITS to do much of the job of revitalizing the cities, reducing the need for heavy spending by Washington. In theory, business will be able to offset costs of rebuilding ghetto areas, cleaning up polluted streams, training unskilled Negroes for good jobs, etc. The idea is that private enterprise can do the job better than government.
Chairman Mills likes to hold use of taxes to revenue raising. And he feels credits cost the government more than they save. But he may go along with use on a modest scale-say, for job training-if Nixon will agree to an extension of the surtax.
The outlook for other legislation in Mills' bailiwick-Tax reform: Nixon is reported to have little interest, and, Mills isn't likely to schedule early hearings on his own. Social Security: Mills opposes Nixon on adjusting benefits to the cost of living. He prefers Johnson's most modest proposal to extend Medicare and other aid to the disabled. Tariffs: Mills may move to end the "American Selling Price" System, as the U.S. promised in recent world negotiations. (Under ASP, a tariff is based on its U.S.-not home-price.)
FEW WELFARE PROPOSALS OF A MAJOR NATURE WILL BE ASKED of Congress by incoming HEW Secretary Finch-except for bigger Social Security benefits. Finch may try to reorganize his sprawling agency, subject to Congress' veto. But the tight hold-down on money will rule out any really sweeping changes.
Nixon called for a "massive upgrading of education" in his campaign. But there is little talk of doing much more this year, beyond what Johnson has laid out in the new Budget.
OBSERVERS DON'T SEE THE NEW TEAM BEING AS CONSUMER-MINDED as LBJ's. There'll be no aggressive effort to break new ground in consumer protection. The new GOP officials feel there'll be a lot to do implementing recent laws. More power for the SEC to regulate mutual funds, for example, won't get very far without Nixon's backing. He has said he doesn't want to over-regulate. (The House Commerce Committee killed such a measure before adjourning in 1968.) Chances are considered better for action on some relatively minor bills, such as proposals for U.S. inspection of fish, or safety standards for medical devices and pleasure boats.
NIXON WON'T ASK CONGRESS FOR NEW LAWS TO CURB UNIONS, despite hopes of some of those who backed his campaign. Congress wouldn't oblige, anyway; many Democrats owe too much to labor. Further, Nixon's new labor Secretary, George P. Schultz, would argue very strongly against any anti-union efforts. He would oppose that heralded attack on the National Labor Relations Board.
But the new team will clash with labor over the minimum-wage hike, the AFL-CIO ardently desires $2 an hour, up from $1.60. Schultz feels it will feed inflation and cut low-grade jobs. Without Nixon's support, an increase has a very poor chance.
The outlook for other labor bills: Coverage of farm workers under wage minimums won't pass. A broad job safety bill is too controversial, but separate bills for coal and construction are strong possibilities. Job training will be revamped, if Secretary Shultz has his way, to give grants directly to the participant as under the GI Bill of Rights-letting him choose his own training.
THIS WILL BE AN OFF-YEAR FOR FARM LEGISLATION. Most programs were extended last year to the end of 1970-payments and loans to farmers, plus restrictions on output. This year, Congress will extend price-supports for soybeans and the feed-grain program. And it may transfer the food-stamp and related programs from Agriculture to Health, Education, and Welfare. The new team will work on new ideas for cutting subsidies for 1970 action.
THE BANKING COMMITTEES WILL HOLD A LOT OF HEARINGS, but little will become law. Most proposals are too controversial the one to curb one-bank holding companies, for example. (The company buys the bank and diversifies into areas barred to banks.) Congress may limit these activities to closely related fields. And it may limit the issuance of unsolicited credit cards.
NIXON MAY ASK CONGRESS TO MAKE OVER THE POST OFFICE. His Postmaster General has been studying proposals to set up a public cooperation to work on business-like lines and eliminate politics. Of course, this won't set well with Congressmen. If holding happens on this approach, added mechanization may be financed. And 1969 may see first-class surface and airmail combined.
THERE WILL BE A DRIVE TO ABOLISH THE ELECTORAL COLLEGE, spurred by the close shave in 1968 when the election was almost thrown into the House. Congress will be asked to launch a Constitutional amendment providing for direct election of the President. But many still don't want change. And the reformers are split. As the election recedes, so does all the concern.