Box 22, Folder 18, Document 14

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Box 22, Folder 18, Document 14

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THE I\lEW YORK TI.MES - November 27, l 966
oi rntcrc~t the White House ap parcr,tly put it aside. R epresentative Henry S. Reuss, Democrat of Wisconsin, has also
, suggested it ln the House.
Mr. Goodell said h!s pl an dit.
fered from Mr. Heller's in makRep . Good ell Asks All otting ing a specific allotment o! tax
of 3 % of Income Tax
receipts to local communities.
The plan calls for. distributing
50 ner· cent of the f unds' for
WASI~N~TON, Nov. . 26 stat~ purposes, with 45 per cent
. (AP) - -- House Republican to be r edistributed by the states
leader has a!ready draft;d _ a to iocal governments, a..-1.d lS per
plan for sharmg Federal r.axes cent t o strengthen the executive
with st~te an_d loca,l govern- and management fWJ.ctions of
ments tnat will be a come stone of Republican policy in st ates.

the next Congress.
The stace _and 10cal . gove:n·
The plan calls for turning mcnts would nave full discretion
back 3 p er cent of Federal in- ?Ver how the money was used,
come tax receipts to states and out each: state would ?e required
localities to use as t hey see fit. to submit its pl n for allocatmg
The amount would rise gradu- ~he ~10_ney and :make an annual
r eport on how it was spent.
ally to 5 p er cent.
Offered by Representative
Treasury Post Planned
Charles E . Goode:!, Repub lican The office or administrator of
?! upstate New York, the plan general aid would .be established
1s the fi rst concr~tc proposal by in the T reasury Deparbnent to
the House Republican leadership assume Federal -esponsibilities
since the Republican election u..~der the plan. •
trmmphs of Nov. 8.
"This proposal seeks to pro- . M1:, G_oo!ell s plan calls :for ,
vlde for the great public needs d1str1but!n 0 90 per cent _of the ,
of the 1960's a nd l970'.'l by Federal mcome tax dlstr1but1on J
equipping state and local gov- to the state;; on a b':s1s of popernments to meet these needs " ulat1on. The rema mmg ;o per 1

vrr. Goodell aid. "It 1s an a'i- cent would be used to raise the .

t ernat ive to the philosophy of per ~ap1ta ,_allotment in the 17 :
the Great Society " he added . poor-est staces.

Using estimated lncome tax
.1'.ot Replacing Anything
payments fo r 1967, Mr. Goodell
Mr. Goodell, chairman of the said that Sl.8-billion would be
Republican Planning and Re- available for distribution. The
search Committee, said in a average basic allocation would
tax-sharing be S8.50 per person, with the
would provide needed general equalizing funds raising the
aid funds without reducing poorer states by as much as S6.
state and local governments to Although the. Federal Govern-'
administrative subdivisions of ment would have no control over!
how the states and localities
It is not being offered, at u~ed the money, Mr. Goodell
least originally, as a substitute said, such use would have to
for any existing programs, he comply with Federal law, includsaid, although in time ,i t m ay ing the Civil Rights Act ban on ,
permit s ome of them to be cut using money for programs in ;
which there is. racial discrim- :
A tax-sharing plan was pro- ination.
posed in 1964 by Walter W. He!- Mr. Goodell v,,ould also require :
!er, then chairman of the a review and possible revision :
President's CoWJ.cil of Economic of the program by Congress
Advisers, but after a brief flurry after four years.

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