Greeley Daily Tribune from Greeley, Colorado on March 16, 1976 · Page 4
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Greeley Daily Tribune from Greeley, Colorado · Page 4

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Tuesday, March 16, 1976
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Tribune Editorial Page Reagan aids President Opinion - Analysis - Interpretation Tucs., March It, 1171 Pause and Ponder Let's search our hearts and constantly ask ourselves, let the words of my mouth, and the meditation of my heart, be acceptable in thy sight, 0 Lord my strength, and my redeemer. --Psalms 19:14 AFBF estate tax reforms more liberal Some weeks ago we editorially commended President Ford for his proposal to help inheritors of family-owned farms, ranches and businesses handle payment of their estate tax. Estate taxes on farms and businesses have skyrocketed since World War I because of inflation. However, there has been no change in the $60,000 specific estate tax exemption. Payments on estate taxes must now begin within nine months after (he owner of a farm or business dies. The amount must be paid off in 10 years at an interest rate of seven per cent. The heavy tax burden at today's prices makes it extremely difficult, if not impossible, for many inheritors to retain ownership of the family farm or business. We still commend the President for his initiative to ease the burden, for, as he said, "Too much labor and love go into the development of a paying farm to dismantle it with every new generation." This, of course, applies to any business. His proposal, while not exempting inheritors from paying the tax, would permit the payments to continue for 25 years, with no interest or principal due in the first five years and a four per cent interest rate in the last 20 years. The tax due on property in excess of $300,000 would not be included in the President's plan. However, it is our belief now that three reforms to the existing estate tax law -- offering more relief than the President's plan and proposed by Allan Grant, president of the American Farm Bureau Federation -- deserve serious consideration for adoption. Grant's three proposals to the House Ways and means Committee, would: 1. Raise the specific estate tax exemption from $60,000 to $200,000 to adjust for inflation since 1942, when the $00,000 figure became effective. 2. Raise the maximum marital deduction from 50 per cent of the value of the adjusted gross estate passed to a surviving spouse to $100,000 plus 50 per cent of the total value of the adjusted gross estate. This would recognize the importance of partnerships between husbands and wives and the special problems of wives widowed at an early age. 3. Establish procedure which would permit the executor of an estate to elect to have land used for farming, woodland or scenic open space assessed for estate tax purposes on the basis of its current use rather than higher potential uses. The $200,000 exemption is figured this way: "The consumer price index -- equal to 100 in 1967 - was 48.8 in 1942 and 161.2 in 1975. This means the purchasing power of $1 in 1975 was about equal to the purchasing power of 30 cents in 1942, and $60.000 divided by .3 equals $200,000. The $200,000 exemption and the other reforms are also justifiable because, as Grant pointed out, estate and gift taxes are a relatively minor source of federal revenue and because estate taxes, rising along with inflation, have become a matter of increasing concern to Farm Bureau members. While the President's proposal would be helpful, the principal plus interest during the extended payment period would be a heavy load over a long haul. A question could arise as to whether the estate tax due constitutes a lien against the property if it is sold. An attorney who handles farm estates here in Weld County said the difficulties proposed by the present estate tax laws have become more and more evident here. The use of the family trust as a solution to the problem could involve complications and remove the personal concern involved when ownership and control is kept strictly a family enterprise. As the President said, "The continuity of our tymiiy larms is vital." We see evidence of that here in Weld County. The proposals offered by the Farm Bureau president would help maintain this continuity. Weld County citizens should make their views in favor of easing the estate tax burden known to Congress Jim Johnson and Colorado's U.S. Senators. BjrNICKTHIMMESCH WASHINGTON - No ratter how these primaries come out, Rould Reagan did Pmidmt Ford a big favor by running against him. It'sgood for the President to battle an opponent and thin learn presidential politics months ahead of the fall campaign. Mr. Ford should murmur silent thank yous to Reagan. The President, after all, was a greenhorn in presidential politics until this winter. He traveled the country extensively in the 1974 campaign and through much of 1975, but that was presidential presence, not presidential politics. In such public appearances, "Hail to the Chief" IE sometimes played, and the President is allowed to pontificate in the most generalized fashion. But now, with Reagan occasionally stinging him with verbal .punches, Mr. Ford's old competitive juices began to flow. Since he has picked up more delegates so far than Reagan, the President's confidence is strengthened through this competition. He also learns some of the nuances of campaigning on the national level. Now Mr. Ford has been in politics since 1948 and was undefeated in 13 races for his seat in the House of Representatives. But campaigning in western Michigan is an entirely different chore from jetting around the country and talking about national, international and even cosmic issues. Big talk, small stick By CLAYTON FRITCHEY WASHINGTON - The surest way of making toe United Stales look like a paper tiger to the rest of the world is for the Administration to keep on taking bellicose stands that the American people and the Congress are obviously not prepared to support. After the way Congress, backed by public opinion, rejected the efforts of President Ford and Secretary of State Henry Kissinger to continue U.S. interventions in Vietnam, Cambodia and, more recently, Angola, it might be supposed that, rather than risk more humiliations, they would stop delivering hollow ultima turns. It's a tough habit to break, however, particularly for Secretary Kissinger, who almost daily warns Cuba in ominous terms that the United States will not stand for any further interventions like the one in Angola. Teddy Roosevelt's dictum was, "Speak softly and carry a big stick." Dr. Kissinger is doing the reverse. Some of this is understandable, for these are indeed difficult days for the secretary, and it doesn't help to have to defend the Ford Administration against unfair and untrue political charges of being soft on communism. But it doesn't help either to overreact. "What happened in Angola will not happen again," the secretary solemnly warns. The United Stales, he asserts, will not "tolerate" or stand idly by in the event of another Cuban intervention elsewhere. Specifically, he warns that any Cuban interference in the dispute between black Mozambique and Rhodesia, where 250,000 whites rule fi million blacks, would provide a crisis. What does that mean? Is it conceivable that Congress would approve sending a U.S. expeditionary force to Africa to fight on Hie side of Rhodesia, which now stands condemned by the United Nations for its oppressive a n t i d e m o c r a t i c government? Britain has already approved Mozambique's blockade of Rhodesia. Not even South Africa, the very symbol of .vhitc supremacy in Africa, has given full support to the white government of Rhodesia, at least not at this writing. None of America'!; allies has rallied to the Kissinger position. The only kind words have come from Rhodesia's foreign minister, Pietcr vanderByl, who is "thankful that at least somebody in the Western world is beginning to realize the menace that threatens the West..." In the same breath, van dcr Byl denounced the Roman Catholic Commission for Justice and Peace in Rhodesia for demanding investigation for reported atrocities by Rhodesian troops against blacks. Assuming Cuba ignores Kissinger's ultima ratio rcgum (Hie final argument of kings, that is, war), and further assuming that the dispatch of U.S. armed forces to Africa is out, would the Administration resort to invading Cuba, or bombing it, or blockading it? Or all three? And again, would Congress permit it? Hardly. One Bay of Pigs disaster is Enough. So then what? Economic war? Isolation of Cuba? Both have already been tried, and Castro has thrived on it. As he says, "What can they take away which has not already been taken away? Nothing." Castro is used to White House and State Department threats. More than 15 Eisenhower was warning that the United States would never tolerate communism in Cuba, so Kissinger is not the first to indulge in that brand of bravura. In his recent tour of Latin America, Dr. Kissinger repeatedly denounced the presence of Cuban troops in Angola, and went on to assert that "the United States will not tolerate a challenge to the solemn treaty principle of nonintervention in this hemisphere." He was referring to the 1947 Rio Treaty providing for collective security in the hemisphere. The only trouble was that he was talking mostly to the heads to Latin governments w h i c h have already recognized the Cuban-backed MPLA as Public forum rules I I'tl'T*. l i t t l i r Trilinnr public frtrlitn ;irr limited til ).*li vumls. Nip rxcpp- linns l.i this rulr u l l l In- prriiiillrrl. A Ir'tlct must OIIITV linth the signaturr »i:il tin* ;icUlr("is l thr H r i l c r . I.Hlrrs r x r r r d i n i ; Ihe l.")ll-\\unl limil or con- t u i t i i n ^ lilii-lmi!! ur |inssillx lilc!mi* slali-pirnli u i l l In- M l c i M i . i l I., [In- w r i t e r u i l h imlificiilion (if thr rr;isrin lur trjc't linn ;in(l m:i\ he rcsulilnittrd Tin iiiihlitiiti'in i i f l r r Ihf r h u n K r has I l l r l l m . l . l r . A l l I r l l n - l l . i l s l I I I ljnin;;lil I" MM- h iliiinc ill |UTSIUI In I I , , . I r l l l - l U l i l n I h l T ,iri;i|iK-liir-iils n i i u f r for proof of ;nilhnrshi|l. (he official government of Angola. When the U.S. secretary visited Colombia, President Alfonso Lopez Michclsen not only declined to condemn Cuba's support of the MPLA, but, with Kissinger at this side, he not too subtly remarked, "This is not the first lime ttiat one of the countries of the hemisphere has intervened outside the hemisphere." He was, of course, referring to the American intervention in Vietnam and Cambodia, not with 12,000 troops but 500,000. President Lopez, however, was tactful enough to refrain from noting that the greatest violation of (he 1947 Rio Treaty outlawing hemisphere intervention has been the United Stales, notably in Cuba and the Dominican Republic in recent years, and, before that, in other Latin nations. Although Lopez and other Latin leaders were too polite to say so outright, what they really want is not so much protection from Cuba as protection from that Big Brother north of the Rio Grande who has such a long history of throwing his weight around in South America, (c) 1976, Los Angeles Times If wettern Michiffui lilcw you to start with, a good congrennum like Gerald Ford could remain popular by answering UIOM letten «nd tending to requests for help on Social Security, baby books and flower seeds. Even with thai success under his belt, Mr. Ford's forays into national campaigning for Republicans were ofter ritualistic or pep rally in nature. There was seldom anyone there to hit back. Politics can be like boxing. And if a iwxer is successful! without getting hit back, the day will come when he will get slugged, and maybe he can't cope with it. For Mr. Ford to have to wait until fall to gel slugged by the Democratic nominee, eager to put his party back in power after eight years, well, that could be a devastating experience. Belter to work up a sweat over Ronald Reagan for the valuable exercise. "Having the Reagan challenge has sharpened up Ihe While House slaff and (he campaign organization as well," says Stu Spency, acting campaign manager. "And when the Presidenl goes oul and does well, il increases his confidence. We're glad we've got the compctilion." Before Reagan announced, both [he White House and President Ford Committee staffs were not exactly winning political Oscars for achievement. And when the Reagan organization clearly turned up superior in some of the early primary states, some personnel chances were made. Instead of reassuring each other, staffers started coming up with ideas. Using the incumbency is an obvious and effective one.In New Hampshire Mr. Ford vowed never to close the navy base al Portsmoulh; and though he didn't visit Massachusetts he and Sen. Edward Brooke finagled new life for that state's Fort Devcns and thus got themselves a front-page story in Boston Iwo days before Ihe primary. Heavens, what presidential' promises in Florida. Mr. Ford reveals lhat the U.S. Travel Service was "instrumental" in bringing the International Chamber of Commerce convention lo Orlando. He approves a new Veterans Hospital for St. Petersburg and promises he will give his all to fund Ihe completion of Interstate 75 (sounds like Campaign, '76). The President has greatly improved his technique with the press, has shown himself to be very knowledgeable in briefing sessions on (lie budget and other weighty presidential concerns and has enjoyed pressing-the-flesh, Lyndon johnson style. In a word, he has become excited about the campaign himself, wanls lo keep his unbroken victory skein inlacl and uill be in beller shape for the fall campaign than if he had no Ronald Reagan to kick around. Actually, Mr. Ford couldn't kick anyone around, but he could cuff opponents up a bit. (c) 1976, Los Angeles Times Early rounds a pillow fight By PAUL HARVEY Before the Florida primary Ron Reagan's campaign manager begged him to "take off the gloves," to "get lough." He did try. But the worst words he could throw at the President without discrediting himself were "weak," "indecisive." And it's not just Reagan. In both partisan arenas these preliminary rounds have been fought with pillows. One guy in the grandstand is making more noise than the announced candidates: Hubert Humphrey. The only political leftover from the' Trumanesque Period of politics is Sen. Humphrey. His runaway mouth has been as much a target for the barbs of pundits as has tho al'.cgcd c! urn si ness cf President Ford. Indeed, Hubert Humphrey has been promised the endorsement of one of his party's most powerful leaders on two conditions; that "you stay out of the primaries and keep your mouth shut." He did stay out of the primaries. But he just can't be silent. "The only way Reagan will ever get to Washington is by appointment," says Humphrey. Here's another recent quote: "The Republicans want you to elect them because the government is too big, too extravagant, too wasteful. What the hell, they've been in charge of it for the last 7 years!" Another quote: "The American people arc waiting to be called into action; Democrats must stop nit-picking and blow the bugle!" This is not an evaluation of the relative leadership qualities of the candidates; that is for voters to decide. But if a professional communicator might offer his evaluation of their relative merits as campaigners, Humphrey could outcampaign anybody in sight. But I'm not sure that his style is as effective as it was in the "Give 'em hell days" of Harry Truman. Perhaps cur electorate is more sophisticated now, will react more favorably to the modesty of a President who responds to criticism by saying, "I do the best I know how." Maybe that's the formula. Yet after August it'll be another kind of ball game. After the nomination conventions, the focus will narrow; the comparatively contented electorate with be eligible for m n t i v a f i n n liysnmPthinP -- nr «fMnehp'.1y. Political experience indicates that a stem-winding spellbinder might yet motivate the "big vote." After all, everything up to now has been decided by fractions of the electorate; the Massachusetts it was less than half or less than one-fourth of the state's eligible voters. Just charm hasn't inspired a turnout. "I do my best" hasn't inspired .1 turnout. A bugle blower might. (c) 1976,1.os Angeles limes Response to business-tax bill critics (The Tribune -is among newspapers thai have editorially opposed House Bill 1076, a bill to give tax relief to small businesses. Sponsors of the -bill, Rep. Jack McCroskey and Rep. Wellinglon Webb, answer criticism of the bill in the following article.) We are the chief sponsors of House Bill 1076, a proposal inlended lo give small, independent business tax relief and establish a progressive corporate tax slructure in Colorado. In brief, our bill would exempt the first $50,000 of net profit from taxalion by Ihe slate. Profit over $50,000 would be laxed al six per cent, rather than the currenl 5 per cenl. The effecl of (hat would be to reduce taxes on a graduated scale on companies with net profits up to $300,000 and increase laxes on companies wilh profits above that level. Today In History By The Associated Press Today is Tuesday, March 16, the 76th day of 1976. There are 290 days left in the year. Today's highlight in history: On this date in 1802, Congress authorized the establishment of the U.S. Military Academy at Wesl Point, N.Y. On this date: In 1521, the Portuguese navigator Ferdinand Magellan reached the Philippines. In 1534, England severed all relations with the Roman Catholic Papacy. In 1676, Indians destroyed the Rhode Island settlements of Warwich and Providence. In 1830, it was a slow day on Wall Street, with only 31 shares of stock traded on the New York Stock exchange. In 1962, New York Governor Nelson Rockefeller's wife divorced him after 31 years of marriage. In 1974, President Richard Nixon said in Chicago he would not resign because he refused lo be party to the destruction of Ihe Presidency of Ihe United States. Ten years ago; The Gemini 8 astronauts were rescued after an emergency landing in (he Pacific, having made the firsl link wilh another satellite in orbit. Five years ago: Congress approved and sent to President Nixon a bill raising Social Security benefits 10 per cenl for 26 million Americans. One year ago: The governmenl in Porlugal resigned to prepare the way for Ihe appointment of a new Cabinet that would reflect that country's sharp lum to the left since an abortive coup the previous week. Today's birthdays: Mrs. Richard Nixon is 64. Senate Majority Leader Mike Mansfield of Montana is 73. Comedian Jerry Lewis is 50. Thought for today: Victory belongs to the most persevering -- Napoleon Bonaparte, 1769-1821. Bicentennial footnote: Two hundred years ago today, the Continental Congress in Philadelphia ordered that May 17, 1776, be observed as a day of humiliation, fasting and prayer. Criticism of HB 1076 has been vague and unsubstantiated, making meaningful dialogue on the bill nearly impossible. Several newspapers have editorialized against the bill. For that reason, wo want to respond lo whal seem lo be Ihe major issues raised by newspaper edilorials and some opponents of Ihe bill. II has been said, in effecl, "It is not right for some businesses to go untaxed," That is a serious distortion of reality. Small business people will still be paying laxes -- a varied lol of inventory, employment, sales, property, and personal income taxes. Those who make this "no taxes" argument are really grasping al shadows. HB 1076 does tax corporations differently, creating a progressive tax struclure. Bui il is not a new idea to prolecl and encourage small firms. A similar provision has been part of the federal corporate tax slructure since 1909 and has been implemented in 12 states. The only real question on this score is: Why has Colorado waited so long? For suspect reasons, some lobbyists for gianl corporalions have suggested thai HB 1076 might somehow be "an- libusiness." We say, flally, thai argument is a scare taclic. Employment will not be affected (except, perhaps, positively) by HB 1076. The tax increase on $1 million of profits would be only $3,640 -- not enough to pay a secretary for six months! Further, the bill will not discourage business from locating in Colorado. Our tax rate would remain comparable to olher states in the region. Turning to the unassailable strengths of HB 107C, First a tax cut will allow small firms to retain more working Dateline 1776 By United Press International SAVANNAH, March 16 - · William Kwcn, head of the council of safety, agreed to release all royal officials and loyalists if British Capt. Barkcly consented lo free three Georgia militia officers held on his ship. The British sympathizers could either leave !he colony or give their parole not to have dealings wilh the enemy. capital, enabling them to grow and contribute to a more competitive business environment. Second, paperwork lor both the state and business people will be vastly reduced. Estimates by Republican Senator Hank Brown, a cosponsor of the bill, indicate that administrative savings to small business will be about SI million, because small business would only have lo file a copy of the federal lax return and a "short form" with the state. Third, because of the interplay of federal and state taxes. HB 1076 will create an overall tax break for Colorado business. Estimates of the positive cash flow range from $1.3 million to $2.7 million. The exact amount is impossible to predict, but there will be a positive cash flow nnd it will increase in succeeding years. HB 1076 has been approved by the House of Representatives. We now urge public support for Ihe bill as it enters the State Senate. Citizens interested in the fate of this bill may contact us or, more important, contact their state senator to express such support. Greeley Daily Tribune Allil The Greeley Republican Published every week day cv.imnq Monday ihraugh Friday and Saturday morning b? the Tnbjr.e Rcpobiitan Publiihincj Co Oilier. 7I» Ith St., GrrMry, Cola . totll Phone ijj oil) i .Km; KuKMii J A K K K S T U K ' K . l l l Kmi-:itTuni.r\ji A I - I ' K I K I t S K X J A M K S t t I'lilTI-. irr Mcr Krlit.ir sh Mur Member of the Associated Press, United Press International, Los Angeles Times Syndicate features, Colorado Press Assn., Inland Daily Press Assn., Audit Bureau of Circulations. Issued to thp Tribune Republican Publishing Co. by Greeley Typo|L graphical Union No. 586.

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