Representatives doubt successof Ford tax plan
(Editor's note: Today, three Daily Nebraskan
reporters examine the reactions of Nebraska
Representatives McColIister, Smith and Thone,
Senators Curtis and Hruska and Gov. Exon to
President Gerald Ford's State of the Union message
given Wednesday.)
By Dennis Onnen
Although both generally agreed with President
Gerald Ford's economic and energy proposals
presented in his State of the Union message, two of
Nebraska's Republican representatives interviewed
Thursday said they don't expect his suggestions to
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friday, january 17, 1975 lincoln, nebraska vol. 98 no. 66
pass through Congress intact.
Virginia Smith, Third District representative, said
she is sure Congress will pass some form of a tax
proposal. She said she agrees with Ford that such a
cut will help bolster the economy and create more
jobs by putting more money into circulation.
"Money in the hands of the people creates jobs,"
she said.
John Y. McColIister, Second District
representative, said unemployment is being increased
because employed people are reluctant to spend their
money. Returning money to them might encourage
increased spending, thus creating jobs by creating a
demand, he said.
'Confidence essential'
"A return of consumer confidence is essential,"
McColIister said. "That tax cut has the opportunity
of restoring people's confidence."
He added that Ford's proposed tax cut would help
farmers by giving them a two-year tax credit on
investments.
Smith expressed concern over Ford's proposed
taxes on fuels which would raise the price of gasoline
and home heating oil by an estimated 10 cents a
gallon. She said such taxes would have an adverse
effect on farmers, who are "some of the heaviest
users of fuels in the nation." Fertilizer, which farmers
must use, is made mostly from petroleum, she said.
If farmers are not exempted from the proposed
fuel taxes, their increased costs of production would
have to be passed on to consumers in the form of
higher food prices, Smith said.
Taxes better than rationing
Both representatives said although fuel taxes have
some shortcomings, they are better than rationing as
a means to reduce consumption.
McColIister said a rationing system would cost
billions of dollars to install, and an equal distribution
of fuel would be hard to determine under such a
system.
Continued on pg. 10
Students divided on Ford talk
Twelve out of 19 UNL students interviewed
by Daily Nebraskan reporters Thursday agreed
with most of the proposals in President Ford's
speech Wednesday.
Most students said they favored the tax cuts,
but many said they think raising gas prices may
not be an effective deterrent to driving.
Bog Hutchinson, a freshman architecture
major from Omaha, said he thought the tax and
federal spending cuts were good proposals.
"I think gas rationing would be more effective
than price hikes," he said. "Maintaining the
supply is important."
Gas rationing also was approved by Teresa
Wright, a junior from Lincoln majoring in social
welfare.
"The increased cost of gas will make me think
about driving a lot more," she said.
Stress employment problems
Employment should have been stressed more
than energy conservation and independence,
according to Steve Johnson, a junior from
Omaha majoring in business administration.
"I think he should have concentrated more on
employment Johnson said. "We need to get the
industry and economy back on their feet."
Joe Roh, a junior from Tekemah majoring in
microbiology, said he disagreed with many of
Ford's proposals.
"Raising the gas price will just make prices on
a lot of other things go up," Roh said. "It won't
slow down the people that haye the money.
"We definitely need to cut federal spending. I
just hope they don't waste time and money with
some big commission trying to decide what to
cut and what not to."
Spending habits a problem
More new programs besides those for energy
need to be implemented, according to Wendy
Viessman, a freshman human development major
from Lincolm. She said people and their
spending habits are more of a problem than the
system itself.
Tom McGinnis, an anthropology graduate
student from Lincoln, said Ford is attacking the
immediate problem of recession while avoiding
the future problem of inflation.
Connie Fleming, a junior" from Morse Bluff
majoring in interior design, agreed that the tax
cuts may prove to be inflationary.
"A tax cut is good now because it should
stabilize the economy," she said. "But inflation
could still be a problem."
Temporary solution
Tax cuts are a temporary solution, according
to Mike Chess, a junior from Omaha majoring in
finance. He said federal spending should not be
cut drastically because it is a big part of the
government's fiscal policy.
Mike O'Connor, a senior from Omaha
majoring in ecology, said the tax cuts may be a
step that Ford hopes will give the people more
money. But he said he doubts that Congress will
go along with all of Ford's proposals.
"I think the defense budget should be cut if
any cuts are to be made in federal programs," he
said.
The tax cuts are more difficult to figure out
than the spending. cuts, according to Ruth Oscar,
a freshman from Omaha.
See related stories,
pages 3 and lO
"It is a very difficult thing to try to work
out," she said. "He had to fix two opposite
things, inflation and recession. I don't see how he
can stop inflation by a tax cut."
Honesty approved
Terry Thielen, a sophomore from Omaha
majoring in education, said he approved of the
President's honesty when addressing the people.
"I was glad to see he came out and said
everything wasn't rosy," Thielen said. "A tax cut
will be a start. He might be criticized, but at least
A tax cut is good because it will put more
money in circulation, but it won't help inflation,
according to Rick Mueller, a junior political
science major.
"I think the idea of cutting federal spending is
good, but I doubt if Congress will approve it," he
said.
Will help wrong people
Marv Andersen, a senior psychology major
from Kennard, said the tax cuts will help the
wrong people.
"I don't go along with it," he said. "Those
whose incomes are so low that they don't pay
taxes aren't going to get any back, so that isn't
going to help them. Those who make the most
money will get the most back, which they don't
need."
A majority of the students first approached
by the reporters knew nothing about the
contents of Ford's speech or said they didn't
have the time to read it.
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Gov. J. James Exon commented Thursday on
President Gerald Ford's state of the union message.
Exon: mixed feelings
By Paula Damke
Gov. J. James Exon expressed both pleasure and concern
Thursday with President Gerald R. Ford's State of the Union
address.
Exon said he was pleased that the President and Congress were
taking constructive steps in the present economic situation.
But, he said, he was concerned with the effect higher fuel prices
would have on the Nebraska agricultural economy.
Exon said at the present time he does not favor gas rationing.
He said he believes every possible avenue should be explored before
such a program is implemented.
He said he doubts Ford's program as it is could get through
Congress, but that a reasonable compromise could be worked out
between Congress and the President that would not cause a delay.
Exon, commenting on the tax rebate program, said he thinks
the tax refund should be concentrated on middle and lower income
individuals rather than those in higher income brackets.
Exon said of the 200 nuclear plants in the national program,
Nebraska already has two nuclear plants. One is located in
Brownville and is owned by the Nebraska Public Power Company.
The other is at Ft. Calhoun and is owned by the Omaha Public
Power District. He said there is a possibility of having more plants
as the need increases.
Exon also said test drilling for oil is going on in Richardson
. County. Coal deposits have been found in the southeastern part of
the state, south of Omaha by the Missouri River, but Exon said the '
coal is so far down it is generally assumed that it is not feasable to
mine at this time.