Masonry Magazine January 1972 Page. 7
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POLITICAL WRANGLING WILL DOMINATE the new election-year session of Congress. The President will push pet bills to build a solid platform for reelection. But Democrats will try to rewrite them to put Nixon in a less favorable light and enhance prospects of regaining the White House in 1972. Nixon will ask Congress to enact relatively few new proposals this year. But some pieces of legislation held over from 1971 will be voted into law.
Lawmakers can boast of some accomplishments for the year just ended. Laws were passed to cut taxes, create public service jobs, expand the ABM, limit campaign spending, give 18-year-olds the vote, and extend the draft. But, over-all, the first session of this Congress cannot be rated as very productive. The 1972 session doesn't offer the hope of major achievement either. Legislative progress is slow during election years.
CONGRESS AND THE PRESIDENT WILL AGREE ON BIG SPENDING in fiscal 1973, the new government accounting year that will open in six months-next July 1. More Federal spending will help get the lagging economy moving more rapidly. President Nixon's new budget will call for spending of about $250 billion and that will be some $17 to $20 billion more than the current fiscal year.
Defense outlays will go up by $2 to $3 billion, to about $81 billion. Revenue-sharing, in one form or another, will add $4 to $5 billion. Existing programs will be allowed to expand as planned in past years-more unemployment compensation, farm-price props and health. Uncontrollable items, such as Social Security benefits, will also rise.
REVENUES WILL INCREASE, TOO but they are hardly likely to keep pace. The Budget will forecast quite a substantial expansion in tax collections, to maybe $230 billion, but many think $225 billion a more realistic figure. To be sure, taxable income will increase as the economy gathers momentum. But last year's tax reductions will cut into the Federal government's take. Business gets a $6 billion cut from the 7% credit and faster depreciation. Individuals will save some $5 billion from higher exemptions and deductions.
Thus, another budget deficit of more than $25 billion is shaping up almost matching the red ink for fiscal 1972.
THE ECONOMY WILL BE A CENTER OF ATTENTION AGAIN in Congress in 1972. Democrats see its lags as offering the only viable issue for opposing Nixon. They will attack the lack of sufficient progress in reducing unemployment. But President Nixon is determined to get the economy moving at a fast pace. He may ask for further tax reductions if economic progress stays too slow.
masonry
January, 1972
THERE'S A CHANCE FOR SOME TAX ACTION THIS YEAR-cuts or increases depending on the needs that the economy will generate as 1972 goes along. Social Security tax boosts could be postponed if new stimulus is required. And Nixon has already promised to help cut state and local property taxes.
He may ask for a value-added tax, now used in Europe. Proceeds would go to aid education, avoiding new hikes in real estate rates. But the prospects are highly uncertain for this year.
REFORM OF GIFT AND ESTATE TAXES WILL BE TAKEN UP early in the year. House Ways and Means Committee Chairman Wilbur Mills is committed to act. Gift and estate tax reforms has been on the committee's schedule for more than two years. But the press of other business forced repeated delays.
Research subsidies may be adopted to hasten the development of products suitable for export. Officials fear the U.S. is falling behind in new product development, especially high technology products which no company can develop on its own.
REVENUE SHARING WITH STATES AND CITIES will get priority treatment. The President has embraced a modification introduced in Congress by Mills. State and local government representatives have agreed to support it, too. Localities will get $3.5 billion a year and the states around $1.8 billion. Federal money would have to be spent on priority needs like public safety, transportation, environmental protection, recreation or health programs.
Administration officials are expressing confidence that the new version will clear Congress-perhaps by spring.
WELFARE REFORM ALSO IS GIVEN A STRONG CHANCE of passage this session. The President asked Congress to delay the plan last year in an economy move. Actually, the plan faced heavy opposition; it never really had much hope. But Nixon will now press anew-accepting changes to meet Senate opposition. And Senate leaders have promised to bring the measure to a vote by March.
The welfare reform proposal was approved by the House early last year. So action by the Senate is the major road-block.
GOVERNMENT REORGANIZATION WON'T GET ANY FURTHER this year than last. The plan to consolidate government agencies still faces strong opposition. Organized labor, farm groups and other special interests are blocking it. They want the present separate departments (Continued on page 22)
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