Masonry Magazine January 1975 Page. 15
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CONGRESS WILL FOCUS ON countering the recession and on the energy crisis during 1975-with considerable politicking on the side. This is the legislative outlook that shapes up as a new year and a new session-open. In addition to fighting the business slide and its resulting unemployment, there will be action on a list of measures that failed to make it in 1974.
There will be cooperation and confrontation-with President Ford. Congress will be forced to go along on a number of key issues because the public won't tolerate bickering on these. But Ford and the lawmakers are politicians with political goals. He'll be trying to build a platform for his election in 1976 and so will push for adoption of bills for which he can claim credit. For their part, the controlling Democrats will try to put over their own ideas, from similar motives.
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THE LAST CONGRESS ACHIEVED some very solid accomplishments in 1974. Laws were enacted to strengthen private pension plans, boost mass transit, authorize foreign trade negotiations, create 300,000 public-service jobs, bring the Federal budget under better control, toughen antitrust penalties, reform financing of Presidential campaigns, and regulate commodity trading. It might have done even more, were it not for impeachment-caused hold-ups.
Most important of all, Congress last year regained its role in making government policy, reversing a trend of the past 40 years-one that was accelerating in the last Administration. And the power structure has been revamped especially in the House. Activists will be exerting more influence on bills.
BOTH PARTIES WILL PUSH FOR rapid action to head off a very serious, prolonged slump. The Democrats will attack Ford and the GOP for the layoffs and unemployment. And they'll blame the Republicans for the surging cost of living. The Budget will be a big battleground in the tussle over economics.
Congress and Ford will differ over spending in fiscal 1976, which starts next July 1. Even with few brand-new programs, the cost of government will go up. But how much of a rise? Ford is prepared for a $20 to $25 billion increase over the $310 billion now shaping up for this year. But the increase may be $30 billion or more before the new fiscal year ends.
Ford himself wants more for defense. And some uncontrollable items Social Security, debt interest- are already slated to rise. Health, education, and other program will grow, too. Democrats will push bills for welfare reform and even more public-service jobs- an elaborate health-insurance plan, too.
CONGRESS WILL CUT TAXES THIS YEAR- that will be the main step to counter the recession. The debate over what cuts and how much will be one of the liveliest of the year. The legislators that is, the Democratic majorities will of course put their own stamp on the President's proposals.
The reductions seem likely to total a minimum of $12 billion. They could go higher; some economists suggest $30 billion.
MUCH OF THE TAX RELIEF will go to low and moderate-income families. The minimum standard deduction might be raised to $2,000 for a married man. And there might be an increase in the standard deduction, too to, say, 16%, with a new ceiling of $2,300. The present limits are 15% and $2,000 a year. (Presumably, low-income taxpayers will spend all cuts they get-and fast.)
There are several other options that will get consideration before a final package emerges across-the-board cuts, or a slash in the tax due April 15 (with bigger refunds to many).
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THERE WILL BE A LITTLE SOMETHING for business in the final package. President Ford has already asked Congress for a higher investment credit to lift outlay for new plant. This will spur business and fight inflation. The present 7% credit now seems very likely to go up to the requested 10%. The hard-pressed public utilities, now getting 4%, will go up to 10%.
Business may also get accelerated depreciation for certain facilities deemed in the public interest- pollution controls, railroad rolling stock, and safety equipment for coal mines.
BUT BUSINESS WILL BE NICKED by provisions from the 1974 reform bill. The oil industry will be especially affected by changes proposed last year. It will lose the depletion allowance; the 22% rate will drop first to 15%, then be eliminated entirely. Exceptions will be made for small producers. An extra tax on windfall profits will also be part of the reform package. This tax could be avoided only by new investment and new oil exploration. Oil and gas companies will also get less credit for foreign taxes they pay. They could only deduct taxes paid... rather than take a full S1-for-$1 cut.
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masonry
January, 1975
15