The Petroleum Proposals
President FordÛªs State of the Union I message really contains two separate I themes. The first is a proposal for a | tax cut, primarily for individuals, to | deal with economic recession and un-Û÷i employment. The second is a sharply | higher price structure for all gas and I petroleum products, an effort to deal | with the Arab-led oil cartel.</br></br>I recognition thatÛÓas the President said | ÛÓÛÏwc are in trouble.Û But his energy | proposals appear to be a blunder that | will guarantee a new round of infla-| tion, with no assurance that the ulti- p Let us go back and examine the tax I proposals more carefully. Economic | conditions have- changed dramatically | since Oct. 8, 1974, when the President i: tried to conduct a war against inflation | with a lax increase, while ignoring the I weakening economy.</br></br>| Mr. Ford has put aside, at least for | now, his ideological distaste for-big | budget deficits, and accepted the idea I of a substantial tax cutÛÓ$16 billionÛÓ I to give purchasing power a quick | boost.</br></br>\ Some Democrats will argue that the 1 tax cut should be $20 billion or $25 bil-| lion, and arranged by. some method I other than a rebate up to $1,000 on: I 1974 tax obligations, as suggested by I the President.</br></br>p The way I see it, the important con-p sidcration is that with Mr. Ford now g on board, there is a consensus for a I sizeable tax cut, including the Demo-| cratic congressional majority, business, \ and labor.