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In Higher Taxes or Through Inflation— Consumers to Pay More Regardless of What Congress Does By JOHN CUNNIPP (AP Business Analyst) NEW YORK (AP) - While the House of Representatives has erected a dam of determination against President Johnson's tax increase proposal, its counterparts in the Senate have opened the flood gates. As it stands now, the President's request for higher income taxes has been buried in the House. But the Senate, paradoxically, hopes to raise Social Security taxes even more than the President requested. This situation appears to say that members of Congress may be willing to see their constituents taxed for a specific purpose but not for the general purpose of supporting the administration's spending plans. Ironically, the people in the lower income brackets would be taxed the most, relatively, if the Senate Social Security bill finds sympathy in the House and is enacted. If it is passed, and if the nation continues to have inflation at the rate of more than 3 per cent a year, then most Americans are going to find themselves paying out nearly as much as they would through an income tax increase. The Social Security bill seeks an increase in the tax on incomes from 4.4 per cent to 5 per cent, to apply not just to the first $6,600 earned, as under the present law, but to the first $8,800. This means that the maximum amount to be deducted for Social Security would jump from $290.40 to $440, a whopping $149.60 advance and considerably more than the President had requested. Now compare this with the additional money that would be paid out under the Johnson income tax proposal, which seeks a 10 per cent surtax on corporate and personal incomes. In sending his proposal to Congress last August, Johnson said that a family of four with an income of $10,000 would pay "at most" an added tax of $9.25 a month. This comes to only $111 a year. For many it would be less. "For three out of every four American families, the burden of this increase will be between a few cents and $9 a month t " the President said. The increase in Social Security taxes would average more than $12. The Senate, Therefore, through approval of a bill that would draw billions of dollars out of the economy, would bring about much of the restraint that the President has failed to extract from the House. The Senate action, however, would tax many who can little afford to pay increase. The person earning $10,000, for example, would pay no more than the worker earning $8,800. Times Herald, Carroll, la. Wednesday, Nov. 8, 1967 The problems of those in the lower income brackets don't stop there, for another tax is hidden in the maze of present government fiscal policy. This is the tax of inflation. Commonly, inflation is not known as a tax, but only because it works clandestinely. In- flation seldom is very obvious until it reaches runaway proportions. It is a sneak thief or, using Johnson's term, it is a pickpocket. It is presently taking 3.1 per cent of your dollar. If, for example, you have $1,000 in the bank at 4.75 per cent interest, your deposit will earn $47.50 a year. But if prices are rising at the rate of 3.1 per cent a year, that $47.50 is reduced to $16.50. It seems, therefore, that American consumers are going to be paying out more of their salaries next year regardless of what .Congress does. If Social Security taxes are raised the strain on pocketbooks will show. If income taxes also are raised the strain will become a real burden. If inflation persists, as it is likely to t the strain becomes painful. These painful prospects perhaps explain the unusual behavior of the administration and ol Congress. They very likely explain also why the American consumer has been guarding his money so closely this year. Read the Want Ads 19 >y SAFEWAY COUPON I I GRAPE JELLY I I I I • Tea Garden; I 18-oz. Jar -?» h p.',!"' 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The TB testing program will start in Sac County on Nov. 13. Selected grades of 1, 9 and 12, and all school personnel will be tested during the week. The testing is approved by the Sac County Medical Society and made possible by contributions to the Christmas Seal program. Susan Dankel, student at Iowa State University, Ames, spent the weekend with her parents, Mr. and Mrs. Burkley Dankel. Liz, Kris and Jan Anderson of Storm Lake were Saturday overnight guests. They visited Sunday in the William Dankel home. M e m b e r s of the advanced homemakers class participated in the "Make-it-with-Wool" contest and modeled their garments at Denison Saturday. Mr. and Mrs. Ray Grill and Mrs. Ethel P r e s c o 11 visited Sunday in the Doyle Prescott home at Schuyler, Neb. Mr. and Mrs. Ralph Mummert of Sioux City and Mr. and Mrs. Bernie Leonard of Odebolt visited Wednesday with Wilmer Hanson. Mrs. Virgil 01 e r 1 c h entertained the SiMozel Club at the Black Hawk Wednesday. Prizes went to Mrs. Vernon Wicker and Mrs. Herb Leighter. Mrs. E. G. Brinkmeyer of Yankton spent the weekend with Mrs. E. E. Krouch. They were visitors in Webster City Saturday. Schultes Visit Auburn Relatives (Times Herald News Service) AUBURN - Mr. and Mrs. Tony Schulte, Sioux Falls, S.D., were weekend guests in the home of Mr. and Mrs. E. A. Heim and Mrs. Ben Schulte. Mr. and Mrs. Clifford De Moss, Cedar Rapids, and Mrs. Warren Presley and son Gerald were Sunday guests in the home of Mr. and Mrs. Forrest Presley and family. Dale Kreft, Omaha, Neb., and Mr. and Mrs. Elmer Kreft, Lytton, were Sunday evening guests of Mr. and Mrs. Leo Brinker. David Schulte, who attends junior college at Eagle Grove, visited his grandparents, Mr. and Mrs. Carl Wurr, Sunday afternoon. Mrs. Reo Miles and Mrs. Everett Garnatz attended a Tuberculosis and Health Association workshop and luncheon at Sac City Monday. 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OOjt VU"^ dlMiniPOO (Regular$1.98Value)..Bottle OTC NOTICE This is the last week to play Safeway's present 12-game BONUS BINGO GAME! Medium-size Breakfast Gema Fry Eggs b Butftr for fctttr Fhiwf SAFEWAY Prices in this Ad good thru Saturday, November 11, in Carroll, Iowa Right reserved to limit guantltteg. No Sales to Dealers. O Copyright 1960, Safeway Stores, Inc. (bs Your winning Bonus Bingo Prize Slips for Program No. 206 may be redeemed thru Saturday, November 18, 1967. After thaf dale they will have expired. Tfiank you for playing this No. 206 Series. We have enjoyed bringing it to you, and we hope you were among the thousands and thousands o£ cash-happy winners. _ PRIZB SLIP PROGRAM *20« FIVE HUNDRED DOLLAR GAME IB FOUR) our our ENTme sim \_ ON DOTTED LINE J PRIZE SLIP PROGRAM #2O« ONE HUNDRED DOLLAR GAME (U TWO) U-2 cur our ENTIRE nm * ON DOTTED LINE J © Copyright 1964. W. J. Jeffery—All right* reserved. Strategic Merchandising Corp., 90 Part Me., N.Y.C.