THE NOME NUGGET
Friday, January 25, 1963
THE NOME NUGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING CO.
NOME, ALASKA
Telephone 443 - 2381 $1.50 PER MONTH
P. O. Box 610 $16.00 A YEAR
E. P. BOUCHER . Managing Editor
CLINTON GRAY . Production Manager
Entered as second class matter October 14, 1943, at the
post office at Nome, Alaska, under Act of March 3, 1879.
Kennedy Sets Forth His Long-Awaited
Controversial Tax Program for 1963
By Frank Cormier
WASHINGTON W — President
Kennedy urged Congress Thurs
day to cut taxes by $3.2 billion
this year as the first step toward
an eventual 18 per cent slash in
the average American's tax bill.
Setting forth the long-awaited
details of his ambitious and con
troversial tax program in a 12,500
word special message, Kennedy
asked that the 1963 cuts be made
retroactive to Jan. 1.
However, the pocketbook effect
on individuals would only come if
and when a new tax law was en
acted and employers began with
holding less tax money from pay
checks. Kennedy assumes, perhaps
optimistically, that this can be done
by July 1.
Over Three-Year Period
Proposed tax savings, to be par
celed out over a three-year period,
would go as high as 39 per cent
for nearly 10 million low-income
house-holders. At the upper end
of the income scale, the average
cut would be 9 per cent.
The Kennedy program, aimed at
squinting fiscal adrenalin into the
economic bloodstream, would com
bine $13.6 billion of individual and
corporate cuts with $3.4 billion of
revenue-raising changes in time
honored special tax benefits. The
net tax reduction thus would be
$10.2 billion.
In seeking revision of benefit
provisions, Kennedy called for the
most sweeping overhaul of the
basic tax law in more than 20
years.
His proposals would affect
itemized deductions, oil depletion
allowances, capital gains taxes,
sick pay benefits and a variety of
other entrenched items claiming
strong support.
Plugging for early action on this,
his top priority elgislation for the
year, Kennedy said:
“Our economy is check-reined
today by a war-born tax system at
a time when it is far more in
need of the spur than the bit.”
And he said his program repre
sents the very spur needed to
boost employment, put more money
into circulation and, eventually,
put enough revenue into the fed
eral Treasury to balance the soar
ing budget.
Even so, the package will face
certain opposition from some Con
gress members who shrink from
the idea of cutting taxes at a time
of mounting budget deficits.
In addition, the program was
just as certain to rile backers of
the special tax benefits that Ken
nedy would repeal or revise.
Bitter With the Sweet
But all along the line, the Presi
dent obviously had made an effort
to more than offset the bitter with
the sweet.
These were some of the major
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items on the sweet side:
Individual tax rates, now rang
ing from 20 to 91 per cent, would
be cut in three steps to a new
sliding scale running from a low
of 14 per cent to a high of 65 per
cent. The range suggested for 1963
was ISV2 to 84V£ per cent—to pro
duce a first-year cut of $2.8 bil
lion.
Effective this year, the 30 per
cent rate on the first $25,000 of
taxable corporate income would be
slashed to 22 per cent. This would
cover the entire earnings of 450,
000 small corporations.
Individuals could claim a brand
new minimum standard deduction
of $150 each for husband and
wife plus $100 for each dependent.
These could be claimed even if
they added up to more than the
present standard deduction of 10
per cent of taxable income.
Wives Could Earn $7,000
Employed women, widowers and
divorced men who now can deduct
up to $600 a year paid for the care
of children while they work could
deduct $900 for the care of two
children and $1,000 for three. In
addition, families with working
wives could earn $7,000 a year in
stead of the present $4,500 limit—
and still claim this benefit.
Then there is this proposal com
bining the bitter and the sweet:
Most taxpayers 65 or older could
subtract $300 from their annual tax
bill. But they could no longer claim
an additional $600 personal ex
emption nor the present retirement
income credit. The net effect would
be a tax saving for most—but not
all—older taxpayers.
Finally, most taxpayers probably
would place the following recom
mendation in the bitter category:
Itemized deductions could only
be claimed to the extent that they
exceeded 5 per cent of taxable in
come. And there would be stricter
limits on deductions for charitable
contributions and casualty losses.
Except for medical expenses, de
ductions now start with the first
dollar of expense.
Sharp Quake Hits Seattle
SEATTLE (j?> — A sharp earth
quake was felt in the Seattle area
at 1:44 p.m. Thursday.
Buildings shook and light fix
tures swayed.
There were no immediate re
ports of damage or injury.
The tremor was felt both east
and south of Seattle.
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Pathet Lao Demands
U.S. Aid Mission Get Out
VIENTIANE, Laos UR — The
left wing of Lao’s shaky coalition
government demanded Thursday
t at the U.S. aid mission get out
of Laos at once “because it is
committing flagrant violations of
the 1962 Geneva agreement.”
The pro-Communist Pathet Lao
demanded the withdrawal of Air
America, a charter company hired
by the U.S. aid group.
The leftists charged that Air
America’s planes “are illegally
flying over territory controlled by
neutralist and Pathet Lao forces,
dropping arms, ammunition, food
and men originating from the
United States aid mission and
other American organizations.”
The Pathet Lao also called on
the International Control Commis
sion—made up of India, Canada
and Poland—to “invite both these
organizations to get out of Laos
and to supervise the withdrawal
which should be effected as quick
ly as possible.”
“If the United States refuses to
do so,” the leftists said, “it must
be responsible for any conse
quences.”
A U.S. Embassy spokesman
termed the Pathet Lao charges
“baseless, ridiculous and entirely
false.”
U of Washington Professor
Says Proposal of Tibetans
In Alaska Is Sound One
WASHINGTON UP) — A Univer
sity of Washington professor said
Wednesday the proposal to resettle
Tibetans in Alaska is a sound one
if the Tibetans are carefully cho
sen and protected after they ar
rive.
Dr. Turrell Wylie, assistant pro
fessor of Tibetan language and
civilization, said the experiment
makes sense only if the Tibetans
are chosen for their agricultural
experience.
Wylie also said Tibetans can’t
be dumped in Alaska and then for
gotten about. “They can’t be iso
lated. They would starve to death,”
he said.
Ilia Tolstoy, explorer, naturalist
and grandson of a Russian novel
ist, has proposed Tibetans be set
tled south of Fairbanks and their
yaks crossbred with Galloway
cattle.
Gene Smith, a University of
Washington graduate student who
has visited Tibetan colonies in Eu
rope, predicted Tibetans would
adapt themselves well to life in
Alaska.
Song Writer Otto Harbach Dies
NEW YORK iff) — Otto Harbach,
89, author of such well known
songs as “Smoke Gets In Your
Eyes,” Indian Love Call,” and
“Cuddle Up a Little Closer,” died
yesterday at his home after a long
illness.
real gusto
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Kennedy Says
Cuba Has Had
‘No Military Influx’
WASHINGTON (JP> — President
Kennedy said Thursday that there
has been “no military influx” into
Cuba recently except for one So
viet ship.
The President was asked at a
news conference about reports of
a new Soviet buildup in Cuba.
He said that the best information
this country has is that one ship
with military cargo has arrived
since the end of the Cuban crisis
over missile bases and bombers.
“There is no evidence,” he said,
“that this ship carried offensive
weapons.”
Kennedy said, too, that there are
16,000 or 17,000 Russians still in
Cuba—figures which are not new.
He said they are continuing to
operate defense sites and technical
equipment and some of their ori
ginal organized units are on the
island.
These units are engaging in ex
ercises and are building some bar
racks, Kennedy said. But he said
that there has been “no military
influx except the one ship.”
Kennedy made it clear this
country is keeping a close watch
on Cuba.
On a point in recent controversy
—whether there had been a plan
at one time for U.S. air coverage
of the abortive Bay of Pigs inva
sion—Kennedy said there was
never any plan for U.S. air cover
age.
In a sort of long-range lecture
to U.S. Allies overseas, the Presi
dent made a fresh appeal for West
ern unity against Communism.
He said this unity must be de
void of personal or national differ
ences.
Kennedy’s words, at his first
news conference since Dec. 12, ap
peared to be another gambit in a
sort of war of nerves with Presi
dent Charles De Gaulle of France.
However, the President did not
mention De Gaulle, in calling for
recognition of the reality of dan
gers and power.
Dogs bite 600,000 people annual
ly in this country, and Public
Health officials say 18 per cent
of the bites could be prevented if
parents wouldn’t give a dog to
children under 6 years old.
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Robert Johnson Residence
Women and Children
Evacuated from Flooded
Village of Koliganek
ANCHORAGE (jfl —Seventy-nine
women and children and seven
men have been evacuated from
the flooded Eskimo village of
Koliganek, located on the Nusha
gak River some 60 miles northeast
of Dillingham.
Twenty-four men of the village
elected to remain there, according
to the Rescue Coordination Cen
ter at Elmendorf Air Force Base.
The women and children were
evacuated to the nearby villages
of Ekwak and New Stuyahok by
an H-21 helicopter from King
Salmon.
The Air Force first dispatched
a C-123 to the scene to evacuate
villagers, but recalled it when it
was determined that only a heli
copter could make a landing.
According to local Red Cross
officials, an ice jam is located on
the Nushagak River above the vil
lage, but the river still is within
its banks.
The state office of Civil Defense
said, however, that large chunks
if ice are flowing freely through the
town threatening homes.
W. H. Woodward, Red Cross
field director at Elmendorf, said
most of the villagers were taken
to New Stuyahok, where they are
being housed and fed at the Bu
reau of Indian Affairs’ school.
Woodward said the food supplies
used by the displaced villagers
will be replaced by the Red Cross.
State Director of Civil Defense
Don Lowell said it has not been
determined when the people can
return to the village.
William Hensley of Kotzebue,
who graduated from Harrison
Chilhowee Academy in Knoxville,
Tenn., and attended the University
of Alaska for two years, is leaving
this month from Kotzebue for
George Washington University in
Washington, D.C., where he plans
to take pre-law studies. Hensley
has been working for Wien Air
lines when not in school these past
summers.
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