Box 22, Folder 18, Document 14

Box 22, Folder 18, Document 14

THE NEW YORK TIMES -

November 27, 1966

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TAX SHARING PLAN

OFFERED BY 6.0.2.

Rep. Goodell Asks Allotting
of 3% of Income Tax

WASHINGTON, Nov. 26

jJ(AP)—4 House Republican

leader has already drafted a
plan for sharing Federal taxes

with state and local govern-
ments that will be a corner-
stone of Republican policy in
the next Congress.

The plan calls for turning
back 3 per cent of Federal in-
come tax receipts to states and
localities to use as they sce fit.
The amount would rise gradu-
ally to 5 per cent.

Offered by Representative
Charles E. Goodcll, Republican
of upstate New York, the plan
is the first concrete proposal by
the House Republican leadership
since the Republican election
triumphs of Nov. 3.

“This proposal seeks to pro-
vide for the great public needs
of the 1960's and 1970's by
equipping state and local gov-
ernments to meet these needs,”
Mr. Goodell said. “It is an al-
ternative to the philosophy of
the Great Society,” he added.

Not Replacing Anything

Mr. Goodell, chalrman of the
Republican Planning and Re-
search Committee, said in a
statement that tax-sharing
would provide needed general
aid funds without reducing
state and local governments to
administrative subdivisions of
Washington.

It is not being offered, at
least originally, as a substitute
for any existing programs, he
said, although in time it may
permit some of them to be cut
back,

A tax-sharing plan was pro-
posed in 1964 by Walter W. Hel-
ler, then chairman of the





President's Council of Economic



of mterest the White House ap-
parently put it aside, Represen-
tative Henry 8, Reuss, Demo-
crat of Wisconsin, has also
suggested it in the House.

Mr. Goodell said his plan dii-
fered frorn Mr, Heller's in mak-
ing a specific allotment of tax
receipts to local communities,

The plan calls for distributing
90 per cent of the funds for
state purposes, with 45 per cent
to be redistributed by the states
to local governments, and 5 per
cent to strengthen the executive
and management functions of
states,

The state and local govern-/

ments would have full discretion
over how the money was used,
but each state would be required
to submit its plan for allocating
the money and make an annual
report on how it was spent.
Treasury Post Planned

The office of administrator of
general aid would be established
in the Treasury Department to
assume Federal responsibilities
under the plan.

Mr. Goodell’s plan calls for
distributing 90 per cent of the
Federal income tax distribution
to the states on a basis of pop-
ulation, The remaining 10 per

cent would be used to raise thel-
per capita allotment in the 17}.

poorest states.

Using estimated income tax
payments for 1967, Mr. Goodell
said that $1.8-billion would be
available for distribution, The
average basic allocation would
be $8.50 per person, with the
equalizing funds raising the

poorer states by as much as $6.)

Although the Federal Govern-
ment would have no control over
how the states and localities}
used the money, Mr. Goodell
said, such use would have to
comply with Federal law, includ-
ing the Civil Rights Act ban on
using money for programs in

which there is. racial discrim-|!

ination,

Mr. Goodell would also require}:

a review and possible revision
of the program by Congress





Advisers, but after a brief flurry]

after four years,

¥

—