THE NOME NUGGET
Published Monday, Wednesday and Friday by the
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NOME, ALASKA
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Eitt®red as second class matter October 14, 1943 at the
poStoffice at Nome, Alaska, under Act of March 3. 1879
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NOME SCHOOL BAND PROUDLY PRESENTS . . .
The Nome School Band proudly presents its spring
•concert tonight at 8 o’clock in the school auditorium
under the direction of Robert Heath, who in the three
years he has been in Nome, developed musical talent,
interest and love of music in over fifty students, who
took advantage of this opportunity.
Heath started with five band students three years
a!go and the band which plays tonight is the result of
many more hours than the school time allotted for
band, as the students were at his home evenings and
on holidays getting special instruction. Nome can be
very proud of the group, in their band uniforms as
they play tonight in a farewell concert to their band
leader. Unfortunately Nome is losing Mr. Heath to
Sitka next year.
Bob Heath has given generously of his musical
talent, not only in school, but on many public occasions
when called upon to sing in his fine baritone voice.
He and his family will be missed in the community.
LATE AGAIN
The Air Force began converting to B-52 jet heavy
bombers in April. This is another instance of the U.S.
being behind the Russians.
The Russians already have more heavy jet bombers
than we have, despite the fact that only a few years ago
our progress in the heavy bomber field was thought to
be so great that we would remain ahead of the Russians
for some years to come.
The situation as of today, however, is that we are
still depending on B-36 bombers, which are propelled
mainly by conventional type propellers, and are just
now preparing to convert to B--52 heavy jets.
It will be several years before the complete con
version will have been made. All of which brings us
around again to the words of Air Force Chief of Staff
Nathan Twining, who recently pointed out in a speech
at The Citadel, in Charleston. S.C., that the Russians
are ahead of us (in numbers) in heavy jets, jet fighters
and light bombers.
There should be no question of lessening defense
expenditures when this is the case, and the next ques
tion for the Air Force will probably be how much we
should increase Air Force appropriations.
LOOKING j
AHEAD
by Dr. Geofge & Benson
DIRECTOR - NATIONAL
EDUCATION PROGRAM
Seorcy, Arkoreo*
TAXATION
THAT DESTROYS
An Associated Press dispatch
notes that 14-vear-old George
Wright III, who won $100,000 on
the television quiz program “The
Big Surprise,” would normally
owe $75,000 of it in income tax
under existing laws. But there is
a way, the boy’s father says,
through which George may be
able to keep a little more than
$25,000. Through a legal man
euver the boy may become the
“head of the family*’ and claim
his mother, brother and sister as
his dependents. Lawyers figured
this one out and apparently they
are still searching for other man
euvers which might aid the tax
stricken boy.
But all agree that even with
recourse to all legal maneuvers,
young George will not be able to
salvage more than a lew thousand
above the $25,000. This is a ridic
ulous situation—through no fault
j of the boy — even though the
| money was not earned in the
normal sense. A 75 per cent tax
on income is ridiculous. And it is
much worse in the still higher
brackets.
Cutting Deeply
For instance, the president of a
certain big maufacturing plant,
whose production genius has pro
vided constantly better jobs for
nearly 10,000 employes, is worth
more than 8100,000 a year to his
company on the basis of competi
tive salaries throughout the busi
ness and professional world. But
he doesn’t make $100,000 a year.
Here is the shocker: This man's
salary is $575,000 a year. The fed
eral government takes in taxes
$156,820 of the first $200,000. On
the remaining $375,000 the gov
ernment then levies a 91 per
cent fax. Thus from this one man
—working lor a salary—the gov
ernment takes $198,070 as its first
mouthful.
That’s just the Federal govern
ment’s income tax. On top of this,
state income taxes must be paid.
And out of every expenditure
the man makes with the money
he retains, still other direct and
indirect taxes arc paid. The Fed
eral income tax alone cuts Ins
$575,000 salary to about $76,000;
and when the other state and Fed
eral taxes are extracted, the net
income is considerably lower.
The situations created by our
ridiculous tax structure are so
fantastic that actually in some
cases people are better off finan
cially if they refuse to accept a
raise in salary or if they care
fully limit their earning capacity.
There is a proposal in Congress,
the Reed-Dirksen Amendment,
which would limit the top rate of
income taxes to 25 per c°nt. On a
three-fourths majority vote, Con
gress could however, assess high
er taxes, so long as the top rate
would not exceed the lowest rate
by more than 15 percentage
points. The adoption of this
amendment would free consider
able investment capital. As a re
sult business and industrial ex
pansion would so broaden the tax
base that before long the govern
ment treasuries would be bene
fitted instead of injured. And
everybody’s tax burden would be
lessened. This is a sound route
for America, and necessary to as
sure enough jobs for our rapidly
increasing population.
House Votes 33
Billions More For
The Defense Dept.
WASHINGTON, UP — Voicing
concern over Russia’s growing
military might, the House Appro
priations Committee voted Thurs
day to give the Defense Depart
ment $33,635,066,000 in new
money.
This is $512,748,000 less than
the total President Eisenhower
asked in his original budget last
January and in a supplemental
request last month for the book
keeping year starting July 1.
But more than half of the re
duction was made up of paper
changes which the committee said
would not affect specific military
programs.
The recommendations were con
tained in a bill which the House
will consider next week. The Sen
ate will act later.
“Barring unforeseen develop
ments,” the committee said, “the
amount appropriated is generally
adequate to fully implement our
projected military requirements
and will enable the Defense De
partment to give the country an
increasingly strong and well-bal
anced force.”
It 'said emphasis during the
coming year will be on airpower
and new weapons, “being phased
in at an increasing rate.”
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JOE AMAROK, Proprietor
Hammarskjold Obtains
New Cease-Fire
Agreement in Palestine
UNITED NATIONS, N.Y., M—
U.N. Secretary General Dag Ham
marskjold told the Security Coun
cil Thursday he has obtained new
unconditional cease - fire agree
ments from Israel and her four
Arab neighbors, Egypt, Lebanon,
Syria and Jordan.
He told the Council in a “pro
gress report” the next step in the
uneasy Middle East situation is
to re-establish full compliance
with other sections of the general
armistice agreements of 1949,
which ended the Palestine fight
ing.
There are indications he may
return in June to work for such
compliance and put the cease-fire
agreements on a more solid basis.
The Secretary General thus
completed the first part of the
assignment given to him by the
I Security Council April 4.
He will go next to Cairo for a
brief conversation with Egyptian
officials and then fly to Rome.
He is expected at the U.N. this
| weekend to write his final report,
to be given the Council next week.
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