vigorously endorsing and supporting the said Guadalupe area for a national park.

SIERRA BLANCA, TEX., July 10, 1963.

Senator RALPH YARBOROUGH, U.S. Senate,

Washington, D.C.

DEAR SENATOR YARBOROUGH: The following is a copy of the resolution adopted by the Commissioner's Court of Hudspeth County at their regular session July 8, 1963.

Upon a motion duly made by Commissioner J. D. Lee, seconded by Commissioner W. F. Hargrove, Jr. and carried unanimously, it is ordered by the court that the following resolution be adopted.

Whereas it is the opinion of the Commissioner's Court of Hudspeth County, Tex. that places of natural beauty should be maintained for the enjoyment of present and future generations; and

Whereas the national parks now in existence are few and many are only seasonably accessible for the enjoyment of the traveling public; and

Whereas the establishment and maintenance of a national park in the Guadalupe Mountains, in and around McKittrick Canyon, would be of great value to the entire country as well as surrounding areas and would afford year-round recreation in a setting of high rugged mountain peaks, running mountain water, and beautiful trees, and shrubs: Now, therefore, be it

Resolved, The Commissioner's Court of Hudspeth County, Tex. assembled in regular session this 8th day July A.D. 1963 unanimously endorse the creation of a national park by the National Park Service of the U.S. Government in North Culberson County in the Guadalupe Mountains in the McKittrick Canyon area.

Yours very truly,

TOM H. NEELY.

Whereas the Guadalupe Mountain area in Culberson and Hudspeth Counties, Tex., is now under study by the National Parks Service for a possible designation as a suitable and desirable national park site; and

Whereas said area is most fitting and suitable for a park site because of its outstanding natural beauty and historical significance; and the Southwest being abundant in maple, wild cherry, ash, walnut, madrone, etc.; in the upper elevations are El Capitan, landmark of the early settlers in their movement to the West, and Guadalupe Peak, the highest point in Texas, 8,751 feet, and where are found heavy stands of ponderosa, limber and pinon pine together with Douglas-fir and aspen; this being the only location in Texas that has rainbow trout and Rocky Mountain elk; plus a dense population of mule deer, wild merriam turkey, mountain sheep, black bear, mountain lions and a normal population of small game; and

Whereas this is one of the few areas remaining in its natural, virgin state in Texas, much of the area never having been utilized for livestock and/or commercial purposes and which has the characteristics that meet the criteria for park use as set forth by the National Parks Service; and

Whereas the National Park Service now owns approximately 6,000 acres in the Guadalupe Mountains, adjacent to and including the entrance to the beautiful and spectacular McKittrick Canyon, a result of the generous gift of Mr. Wallace Pratt, celebrated Texas geologist, now being preserved by the Parks Service but being of insufficient size to develop into a park; and

Whereas this location is only 35 miles from Carlsbad Caverns National Park and could be operated in conjunction therewith thus effecting a considerable saving; and

Whereas this would add to the existing attractions in the Pecos Valley and the TransPecos areas and would compliment our Bal

morhea State Park and swimming pool, Fort Davis with its old military installations, Scenic Drive, and McDonald Observatory; and

Whereas the projected population of Pecos and Reeves County will demand more recreational areas to serve our own needs and with the completion of the new highway from Orla in Reeves County to the New Mexico line, we have a direct road to the Guadalupes that will serve not only Pecos and Reeves County but will enable Pecos to get its share of the tourists to and from the park; and

Whereas this development would help in the campaign to sell the tourist "on spending an extra day in the Pecos area” as well as the State tourist program of offering more to see and do in Texas: Now, therefore, be it Resolved, That the directors of the Pecos Chamber of Commerce, in regular meeting, September 10, 1963, do support the designation of the said Guadalupe area as a national park site; and order that copies of this resolution be sent to the Texas congressional delegation, the Secretary of Interior, members of the National Park Advisory Committee, the Director of the National Park Service, the Governor and our State senator and representative.

ARCHIE SCOTT, President, Pecos Chamber of Commerce.

TEXAS PERMIAN HISTORICAL SOCIETY,

Odessa, Tex., September 17, 1963. We, members of the Texas Permian Historical Society, are very interested in the Guadalupe Mountains area becoming a national park. Since we cover 16 counties in the west Texas (Permian Basin) area we feel the establishment of such a park in this area would be of benefit to Texas, and we feel that the history of Texas should be preserved as quickly as possible.

We would appreciate your consideration of the enclosed resolution. Thank you. Yours very truly,

GERALD FUGIT, President.

"Whereas the National Park Service is making a study of the Texas Guadalupe Mountains area to ascertain whether it is adaptable as a national park; and

"Whereas this area is not only important to the Permian Basin of Texas from the standpoint of its natural beauty but for its historical significance as well; and

"Whereas historic El Capitan and Guadalupe Peak, long landmarks for the travelers through this area; old Pinery Station used by the Butterfield Stage; Pine Springs used by the cavalry and the Indians; Indian caves, campsites and trails, and trails used since prehistoric times; all contained in the proposed park area: Now, therefore, be it

"Resolved, That the Texas Permian Historical Society in regular meeting in Crane, Tex., on Sunday, September 15, does urge that this area be made a national park and that it be preserved because of its historic, scenic, and recreational value."

ECTOR COUNTY HISTORICAL SURVEY
COMMITTEE,

Odessa, Tex., September 17, 1963. The Ector County Historical Survey Committee respectfully submit the enclosed resolution for your consideration.

We feel that Texas should preserve all historic structures and all historic sites and trails should be marked. We are of the opinion that one of the best ways to insure the care of the Texas Guadalupe Mountains is to convert the area into a National Park. Mrs. GRACE KING, Chairman.

"Whereas it is the purpose of County Historical Survey Committees in Texas to work for the preservation and marking of historic sites, trails, and structures; and

"Whereas the Guadalupe Mountains area in Culberson and Hudspeth Counties contains sites, trails, and landmarks important to the history of this area; and

"Whereas Pinery Station located in the Texas Guadalupes is the only Butterfield Stage station located on a major U.S. highway, its foundations are intact and the original plans are available, thereby, affording excellent opportunities for authentic renovation; and

"Whereas Pine Springs is located in the area of Pinery Station and is noted as a camping place for Indians and cavalry; and

"Whereas this area is now being surveyed and studied by the National Park Service with the idea in mind of acquiring a portion that would include the above and other historic sites and trails: Now, therefore, be it

"Resolved, That the Ector County Historical Survey Committee recommends that this area be designated as suitable for a national park and that it be restored and preserved, thereby complementing the historical trails and attractions we have in Ector and neighboring counties."

RESOLUTION

Whereas the Guadalupe Mountain area in Culberson and Hudspeth Counties, Texas, is now under study by the National Parks Service for a possible designation as a suitable and desirable national park site; and

Whereas said area is most fitting and suitable for a park site because of its outstanding natural beauty and historical significance; and

Whereas in the area is McKittrick Canyon with plant life unique in the Southwest being abundant in maple, wild cherry, ash, walnut, madrone, etc.; in the upper elevations are El Capitan, landmark of the early settlers in their movement to the West, and Guadalupe Peak, the highest point in Texas, 8,751 feet, and where are found heavy stands of ponderosa, limber and pinon pine together with douglas fir and aspen; this being the only location in Texas that has rainbow trout and Rocky Mountain elk; plus a dense population of mule deer, wild merriam turkey, mountain sheep, black bear, mountain lions and a normal population of small game; and

Whereas this is one of the few areas remaining in its natural virgin State in Texas, much of the area never having been utilized for livestock and/or commercial purposes and which has the characteristics that meet the criteria for park use as set forth by the National Parks Service; and

Whereas the National Parks Service now owns approximately 6,000 acres in the Guadalupe Mountains, adjacent to and including the entrance to the beautiful and spectacular McKittrick Canyon, a result of the generous gift of Mr. Wallace Pratt, celebrated Texas geologist, now being preserved by the Parks Service but being of insufficient size to develop into a park; and

Whereas this location is only 35 miles from Carlsbad Caverns National Park and could be operated in conjunction therewith, thus effecting a considerable saving; and

Whereas the projected population of west Texas demands more recreational areas to serve our own needs and those of tourists along U.S. Highway 385, and with the completion of the new highway from Orla, Tex., in Loving County, to the New Mexico line, we have a direct road from U.S. Highway 385 to the Guadalupes that will serve the people in this west Texas area of the State of Texas, and also the tourists who may want to visit the Guadalupe Park area while traveling along U.S. Highway 385: Now, therefore, be it

Resolved, That the Texas Division, International Parks Highway Association, in its regular quarterly meeting, meeting at Dimmit, Tex., on October 19, 1963, do support

the designation of the said Guadalupe area as a national park site; and order that copies of this resolution be sent to the Texas congressional delegation, the Secretary of the Interior, members of the National Park Advisory Committee, the Director of the National Parks Service, the Governor, and our State senators and representatives.

H. R. TARPLEY,

President, Texas Division, International Parks Highway Association. WEATHERFORD CHAMBER OF COMMERCE,

Weatherford, Tex., October 21, 1963.

Hon. RALPH YARBOROUGH,
U.S. Senate,
Washington, D.C.

DEAR SIR: The Weatherford Chamber of Commerce would like to add its support to the other communities of our State and the great Southwest in securing national park status for the Guadalupe Mountain area.

Be it hereby resolved, the Weatherford, Tex., Chamber of Commerce Board of Directors fully realize the potential economic value and tourist pleasures that can be derived from a national park in the west Texas Guadalupe Mountain area.

Be it also resolved that the people of Weatherford and Parker County will do what is necessary and expected to make this national park a success, through a coopera

tive effort.

We solicit your consideration and support of this project. Sincerely,

DARWIN COX,

President, Chamber of Commerce of
Weatherford, Tex.

Whereas the Highway and Transportation and the Tourist Committees of the Weatherford Chamber of Commerce have recommended to the chamber of commerce board of directors the adoption of a resolution in favor of supporting the designation of the Guadalupe Mountain areas as a national park

site; and

Whereas said area is most suitable and desirable because of its natural beauty and historical significance; and

Whereas the people of Weatherford and Parker County, Tex. (fully realizing the potential economic value and tourist pleasures that can be derived from a national park in the west Texas Guadalupe Mountain area) will do what is necessary and expected to make this project a success; and

Whereas the Weatherford Chamber of Commerce desires to officially endorse said area as a national park site: Now, therefore, be it

Resolved, That on this 14th day of October 1963, the Weatherford Chamber of Commerce does hereby go on record as actively and vigorously endorsing and supporting the said Guadalupe area for designation as a national park.

We solicit your consideration and support of this project.

MINERAL WELLS CHAMBER OF COMMERCE, Mineral Wells, Tex., October 10, 1963. The Honorable RALPH YARBOROUGH, U.S. Senate, Washington, D.C.

DEAR SENATOR YARBOROUGH: Enclosed is a resolution asking that the Guadalupe Mountain area be made a national park. For many years our highway committee and the people of Mineral Wells have worked for the interest of Highway 180. This resolution is presented to you in sincerity and with forethought. Many resolutions are written, but I did want to impress upon you a project that is of great interest to us, and we sincerely hope that you will give it every consideration. The tourist industry means a great deal to us and to the State of Texas. Very truly yours,

GRADY L. ELDER, Jr.

"Whereas the Guadalupe Mountain area in Culberson and Hudspeth Counties, Tex., is now under study by the National Park Service for a possible designation as a suitable and desirable national park site; and

"Whereas said area is most fitting and suitable for a national park site because of its outstanding natural beauty and historical significance; and

"Whereas the creation of such a national park site would constitute a tourist development boom for all Texas, New Mexico, and Arizona; and

"Whereas the Mineral Wells Chamber of Commerce, Inc., desires to officially endorse said area as a national park site: Now, therefore, be it

"Resolved, That on this the 7th day of October 1963, the Mineral Wells Chamber of Commerce, Inc., does hereby go on record as actively and vigorously endorsing and supporting the said Guadalupe area for designation as a national park."

RESOLUTION OF CITY OF MINERAL Wells, Tex.

Whereas the Guadalupe Mountain area in Culberson and Hudspeth Counties, Tex., is now under study by the National Park Service for a possible designation as a suitable and desirable national park site; and

Whereas said area is most fitting and suitable for a national park site because of its significance; and outstanding natural beauty and historical

Whereas the creation of such a national park site would constitute a tourist development boom for all Texas, New Mexico, and Arizona; and

Whereas the city of Mineral Wells, Tex., desires to officially endorse said area as a national park site: Now, therefore, be it

Resolved, That on this the 8th day of October 1963, the city of Mineral Wells, Tex., does hereby go on record as actively and vigorously endorsing and supporting the said Guadalupe area for designation as a national park.

N. S. CARLOCK,

Mayor.

RESOLUTION OF ANSON, TEX., CHAMBER
OF COMMERCE

Whereas the Guadalupe Mountain area in Culberson and Hudspeth Counties, Tex., is now under study by the National Park Service for a possible designation as a suitable and desirable national park site; and

Whereas said area is most fitting and suitable for a national park site because of its outstanding natural beauty and historical significance; and

Whereas the creation of such a national park site would constitute a tourist development boom for all Texas, New Mexico, and Arizona; and

Whereas the Anson Chamber of Commerce desires to officially endorse said area as a national park site: Now, therefore, be it

Resolved, That on this the 2d day of October 1963, the Anson Chamber of Commerce does hereby go on record as actively and vigorously endorsing and supporting the said Guadalupe area for designation as a national park. WENDELL O. BARBER, President. A. V. WOMACK,

Members of the board are: Mr. Bill Squires, chairman, 1913 Mesita; Mr. Sal Berroteran, 1018 St. John; Mrs. L. A. Velarde, 209 Lawton; Mrs. L. M. Davis, 621 Bolton; Mr. Wallace Lowenfield, 905 Thunderbird Drive; Mr. Barney Koogle, 4965 Love Road; Mr. Dale Waters, 608 Caminoreal, and Mr. Gene Jordan, 8724 Coloma.

Sincerely,

BYRON D. TATE,

Secretary, Park and Recreation Board. Whereas the Guadalupe Mountain area in Culberson and Hudspeath Counties, Tex., is now under study by the National Parks Service for a possible designation as a suitable and desirable national park site: and

Whereas said area is most fitting and suitable for a park site because of its outstanding natural beauty and historical significance; and

Whereas in the area is McKittrick Canyon with plant life unique in the Southwest being abundant in maple, wild cherry, ash, walnut, madrone, etc.; in the upper elevations are El Capitan, landmark of the early settlers in their movement to the West, and Guadalupe Peak the highest point in Texas 8,751 feet, and where are found heavy stands of ponderosa, limber and pinon pine together with Douglas-fir and aspen; this being the only location in Texas that has rainbow trout and Rocky Mountain elk; plus a dense population of mule deer, wild merriam turkey, mountain sheep, black bear, mountain lions and a normal population of small game; and

Whereas this is one of the few areas remaining in its natural, virgin state in Texas, much of the area never having been utilized for livestock and/or commercial purposes and which has the characteristics that meet the criteria for park use as set forth by the National Parks Service; and

Whereas the National Parks Service now owns approximately 6,000 acres in the Guadalupe Mountains, adjacent to and including the entrance to the beautiful and spectacular McKittrick Canyon, a result of the generous gift of Mr. Wallace Pratt, celebrated Texas geologist, now being preserved by the Parks Service but being of insufficient size to develop into a park; and

Whereas this location is only 35 miles from Carlsbad Caverns National Park and could be operated in conjunction therewith thus effecting a considerable saving; and

Whereas the projected population of west Texas demands more recreational areas to serve our own needs and with the completion of the new highway from Orla in Loving County to the New Mexico line, we have a direct road to the Guadalupes that will serve the cities of West Texas and the State of Texas: Now, therefore, be it

Resolved, That the commissioners court of Andrews County in regular session, September 30, 1963, do support the designation of the said Guadalupe area as a National Park site; and order that copies of this Resolution be sent to the Texas Congressional Delegation, the Secretary of Interior, members of the National Park Advisory Committee, the Director of the National Parks Service, the Governor, and our State senator and representative.

ROY D. BENNETT,
County Judge, Andrews County, Tex.

Attest:

being abundant in maple, wild cherry, ash, oak, walnut, madrone-sometimes called manzanita-with the usual desert life of grasses, wild flowers, cactuses, yucca, sotol, and ocotillo; and

Whereas in the upper elevations are El Capitan, landmark of the early settlers in their movement to the West and Guadalupe Peak, the highest point in Texas, 8,751 feet, and where there are found heavy stands of ponderosa pine, Douglas fir, limber pine, pinon pine, and some aspen; and

Whereas this is the only location in Texas that has rainbow trout and Rocky Mountain elk plus a dense population of mule deer and wild merriam turkey, a few mountain sheep, black bear, and mountain lions plus a normal population of small game such as bobcat, raccoons, skunks, porcupine, and the ever-present road runner; and

Whereas this is one of the few areas remaining in its natural virgin state in Texas, much of the area never having been utilized for livestock and/or commercial purposes and which has the characteristics that meet the criteria for park use as set forth by the National Park Service; and

Whereas the National Parks Service now owns approximately 6,000 acres in the Guadalupe Mountains, adjacent to and including the entrance to the beautiful and spectacular McKittrick Canyon, a result of the generous gift of Mr. Wallace Pratt, celebrated Texas geologist, now being preserved by the Park Service but being of insufficient size to develop into a park; and

Whereas this location is only 35 miles from Carlsbad Caverns National Park where approximately 550,000 visitors per year are all potential tourists for west Texas, each tourist being worth $8.56 per day; and

Whereas this would add to the chain of existing attractions already in this area and thus prolong the stay of tourists in west Texas; and.

Whereas the population explosion of Texas alone will demand more and more recreational areas to serve our own needs; and

Whereas we should lend every effort to the preservation of this virgin land for generations yet unborn so they might know the nature of the world in its creation: Now, therefore, be it

Resolved, That the directors of the Wink Chamber of Commerce recommend this resolution be adopted.

Respectfully submitted.

F. M. BALLARD, President, Wink Chamber of Commerce.

RESOLUTION 228

Resolution requesting the establishment of a national park in the Guadalupe Mountains, to be known as Guadalupe Peak National Park, and requesting the favorable consideration of the Congress of the United States in establishing such area as a national park

Whereas the City Council of Carlsbad, Eddy County, N. Mex., has been petitioned by its citizens to recognize the Guadalupe Peak National Park as a place well situated and established for a national park; and

Whereas said area is located in close proximity to the Carlsbad Cavern National Park and is an area of great natural beauty readily accessible by the public. That the same should be preserved for the enjoyment and pleasure of the public as a whole; and

Whereas the mayor and City Council of the City of Carlsbad, Eddy County, N. Mex., desire to see the establishment of such area as a national park, and urge the public officials to take such action as is necessary to create and consummate the same: Now, therefore, be it

Resolved by the City Council of the City of Carlsbad, N. Mex., That the Congress of the United States be, and it is hereby, petitioned

and requested to establish in the Guadalupe Mountains of west Texas an area to be known as Guadalupe Peak National Park, and thereby recognize the great natural beauty of the area and preserve its uses and enjoyment to the public.

Introduced, passed, adopted, and approved this 13th day of June 1963.

Mayor. City Clerk.

REDUCTION OF INDIVIDUAL AND CORPORATE INCOME TAXESAMENDMENTS (AMENDMENT NO.

311)

Mr. MILLER. Mr. President, I submit an amendment, intended to be proposed by me, to the bill (H.R. 8363) to amend the Internal Revenue Code of 1954 to reduce individual and corporate income taxes, to make certain structural changes with respect to the income tax, and for other purposes. I ask that the amendment be printed, appropriately referred, and printed in the RECORD.

The PRESIDENT pro tempore. The amendment will be received, printed, and appropriately referred; and, without objection, the amendment will be printed in the RECORD.

The amendment (No. 311) was referred to the Committee on Finance, as follows:

On page 1, beginning with line 3, strike out all through line 4 on page 2 (section 1 of the bill).

On page 2, line 5, strike out "SEC. 2" and insert "SECTION 1".

On page 2, beginning with line 14, strike out all through line 23 on page 27 (title I of the bill), and insert the following: "TITLE I-REDUCTION OF INCOME TAX RATES ON GROWTH INCOME

"SEC. 111. INCENTIVE TAXATION OF GROWTH INCOME.

"(a) INDIVIDUALS.-Section 1 (relating to tax on individuals) is amended by striking out subsection (d) and inserting in lieu thereof the following new subsections:

"'(d) TAX ON GROWTH INCOME.-Notwithstanding the rates of tax prescribed above, the tax on growth income shall be reduced by an amount equal to one-half the tax otherwise computed on the basis of such rates: Provided, That such reduction shall not exceed the tax for the first immediately full taxable year: And provided further, That reductions of less than $5 shall not be recognized.

666

-

"(e) CROSS REFERENCES.(1) For definition of taxable income, see section 63.

"(2) For definition of growth income, see section 64."

"(b) OPTIONAL TAX ON INDIVIDUALS.-Section 3 (relating to optional tax if adjusted gross income is less than $5,000) is amended by adding at the end thereof the following:

"Provided, That the tax on growth income shall be reduced by an amount equal to one-half the tax otherwise computed under the table; but such reduction shall not exceed the tax for the first immediately preceding full taxable year, and reductions of less than $5 shall not be recognized.'

"(c) CORPORATIONS.-Section 11 (relating to tax on corporations) is amended by redesignating subsection (d) as (e), and by inserting after subsection (c) the following new subsection:

"(d) TAX ON GROWTH INCOME.-Notwithstanding the rates of tax prescribed above,

the tax on growth income shall be reduced by an amount equal to one-half the tax otherwise computed on the basis of such rates: Provided, That such reduction shall not exceed the tax for the first immediately preceding full taxable year: Provided further, That reductions of less than $15 shall not be recognized.'

"(d) TECHNICAL AMENDMENT.-Section 12 is amended by renumbering paragraphs (1) through (8) as (2) through (9), respectively, and by inserting before paragraph (2) (as renumbered) the following new paragraph: "(1) For definition of growth income, see section 64.'

"SEC. 112. TAX REDUCTION PAYBACK.

"(a) INDIVIDUALS.-Part I of subchapter A of chapter 1 (relating to tax on individuals) is amended by renumbering section 5 as section 6, and by inserting after section 4 the following new section:

"SEC. 5. TAX REDUCTION PAYBACK.

"(a) The amount of tax redutcion attributable to growth income provided for in sections 1 and 3 shall be voided and the reduction shall become a part of the tax due and payable for the following taxable year to the extent prescribed in subparagraph (b)

666

"(b) If a taxpayer's combined income from wages and salaries, rents, ordinary dividends, royalties (other than royalties receiving special tax treatment), interest, and business and farming (with adjustments provided in section 64 applicable to the current taxable year) is less than such combined income (with adjustments provided in section 64 applicable to the first immediately preceding taxable year) for the year of tax reduction due to growth income, the tax reduction shall be voided according to the proportion that the decrease bears to the amount of growth income on the basis of which said tax reduction was computed: Provided, That said tax reduction shall not be voided to the extent said decrease is attributable to the retirement or death of a taxpayer (or his spouse) or to losses due to fire, flood, drought, windstorm, theft, or other casualty, not covered by insurance or otherwise: Provided further, That if said following taxable year is a short year due to termination of an estate or trust, such combined income (with adjustments provided in section 64 applicable to the current taxable year) shall be annualized for the purpose of computing said decrease, if any.'

"(b) CORPORATIONS.-Part II of subchapter A of chapter 1 (relating to tax on corporations) is amended by renumbering section 12 as section 13, and by inserting after section 11 the following new section:

"SEC. 12. TAX REDUCTION PAYBACK.

6

"(a) The amount of tax reduction attributable to growth income provided for in section 11 shall be voided and the reduction shall become a part of the tax due and payable for the following taxable year to the extent prescribed in subparagraph (b).

"(b) If a corporation's combined income from rents, ordinary dividends, royalties (other than royalties receiving special tax treatment), interest, and business and farming (with adjustments provided in section 64 applicable to the current taxable year) is less than such combined income (with adjustments provided in section 64 applicable to the first immediately preceding taxable year) for the year of tax reduction due to growth income, the tax reduction shall be voided according to the proportion that the decrease bears to the amount of growth income on the basis of which said reduction was computed: Provided, That said tax reduction shall not be voided to the extent said decrease is attributable to losses due to fire, flood, drought, windstorm, theft, or other casualty, not covered by insurance or otherwise: Provided further, That if said following taxable year is a short year due to

liquidation, dissolution, or reorganization, such income (with adjustments provided in section 64 applicable to the current taxable year) shall be annualized for the purpose of computing said decrease, if any.'

"SEC. 113. DEFINITION OF GROWTH INCOME. "Part I of subchapter B of chapter 1 (relating to definition of gross income, adjusted gross income, and taxable taxable income) income) is amended by adding at the end thereof the following new section:

""SEC. 64. GROWTH INCOME DEFINED.

"(a) For purposes of this subtitle, the term "growth income" means the excess of the combined income from the current taxable year from wages and salaries, rents, ordinary dividends, royalties (other than royalties receiving special tax treatment), interest, and business and farming (with adjustments provided below) over such combined income (not less than zero) for the first immediately preceding full taxable year (with adjustments provided below), hereinafter referred to as the "base year". "(b) With respect to the current taxable year, strike out the following:

""(1) Gains and losses from the sale or exchange of capital assets or property treated as capital assets, the capital loss carryover deduction, and net operating loss deduction. “

"(2) Recognized income due to recovery of bad debts, prior taxes, and delinquency amounts, and due to improvements by a lessee.

""(3) Net income from illegal activities. ""(4) Lump sum income which the taxpayer may ratably allocate for tax purposes except to the extent of the portion ratably allocable to the current taxable year.

"""(5) Losses from fire, flood, windstorm, theft, or other casualty not covered by insurance or otherwise.

""(6) Income resulting from a change in method of valuing inventory, method of accounting, or method of depreciation.

""(7) Dividend income from a corporation in excess of 125 percent of such income

received from the corporation in the previous

taxable year, or in excess of current earnings of said corporation, whichever excess amount is the greater, where 50 percent or more of the total combined voting power of all classes of stock of said corporation is owned by the taxpayer.

""(8) In the case of a taxpayer other than a corporation, income from a business or a partnership which represents the continuation of the business of a corporation, 50 percent or more of the total combined voting of all classes of stock of which is owned by

the

taxpayer. (This provision shall not apply after the first full taxable year following cessation of such business by the corporation.)

""(9) In the case of a corporation, income which represents the continuation of the business of another corporation merged or consolidated with the taxpayer or which represents the continuation of the business of another corporation of which 50 percent or more of the total combined voting power of all classes of stock is owned by the corporation. (This provision shall not apply after the first full taxable year following such merger or consolidation or cessation of such business by the other corporation.)

"""(10) In the case of a corporation, the

decrease in deductions for charitable contributions (under section 170) below such deductions for the first immediately preceding full taxable year.

"(11) In the case of estates and trusts, the decrease in deductions for income paid over to beneficiaries below such deductions for the first immediately preceding full taxable year where such payment is discretionary."

"(c) With respect to the base year, delete the following:

""(1) Gains and losses from the sale or exchange of capital assets or property treated

as capital assets, the capital loss carryover deduction, net operating loss deductions, and the additional first-year depreciation deduction authorized by section 179.

"**"(2) Recognized income due to recovery of bad debts, prior taxes, and delinquency amounts, and due to improvements by a lessee.

"(3) Losses from fire, flood, windstorm, theft, or other casualty not covered by insurance or otherwise.

""(4) Income resulting from a change in method of valuing inventory, method of accounting, or method of depreciation when such change results from action of the Commissioner."

"(d) In the case of corporations, the combined income for the base year shall not be less than such income (with the same adjustments) for the taxpayer's calendar or fiscal year 1963 or (if the taxpayer was not in existence or was inactive during such year) the first full taxable year thereafter: Provided, That the taxpayer may elect in lieu of such limitation to use the average of such combined income (with the same adjustments) for calendar or fiscal year 1963 and the two immediately preceding full taxable years (or, if the taxpayer was not in existence for such period, the first immediately preceding full taxable year) if active during such period.

"In the case of a reorganization, the limitation on the base year of the continuing corporation shall be computed by using the combined income for calendar or fiscal year 1963 of the corporations which are parties to the reorganization; and if the combined income of fiscal or calendar year 1963 and the two immediately preceding taxable years (or first immediately preceding taxable year, as the case may be) is used in lieu of such limitation, the combined income for such period of the corporations which are parties to the reorganization shall be used.

"(e) Where income or deductions have been arbitrarily shifted from one year to an

other by a taxpayer for no business purpose

other than reduction of taxes arising from the reduced tax rates on growth income, the Commissioner is authorized to make such adjustments as are necessary to protect the

revenue.

"(f) In determining ownership of stock for purposes of this section, actual or constructive ownership (under section 318) shall be taken into account.

"(g) Where a joint return is filed for the current taxable year and separate returns were filed (either as married or single individuals) for the base year, the base year's income shall include the income (with adjustments specified above) of both returns unless the income on the joint return represents the actual income of only one spouse.' "SEC. 114. EFFECTIVE DATE.

"The amendments made by this title shall be effective January 1, 1964. In the case of taxable years ending prior to December 31, 1964, the tax reduction provided for in this title shall be reduced according to the proportion that the number of months not falling within the calendar year 1964 bears to twelve."

On page 278, beginning with line 1, strike out all through line 20 on page 304 (title III of the bill).

Amend the title so as to read: "An Act to amend the Internal Revenue Code of 1954 to encourage economic growth by providing for reduced income tax rates on growth income, to make certain structural changes with respect to the income tax, and for other purposes."

Mr. MILLER. Mr. President, this amendment incorporates what I call my incentive taxation-growth income plan. It would substitute this language for the proposed reduction in tax rate sched

ules-title I of the bill-and also would strike out the new optional tax provisions and optional tax tables contained

in title III.

AMENDMENT OF FOREIGN ASSISTANCE ACT OF 1961-AMENDMENTS (AMENDMENT NO. 312)

Mr. GRUENING. Mr. President, I send to the desk an amendment to H.R. 7885, the Foreign Assistance Act of 1961, cosponsored by my colleague [Mr. BARTLETT], which aims at securing compensation for the fishermen whose vessels, traps, and other equipment are damaged by foreign invading vessels.

The PRESIDENT pro tempore. The amendment (No. 312) will be received, printed, and lie on the table.

Mr. GRUENING. Mr. President, we have a very serious situation in Alaska, where, in the last 2 years, Japanese and Russian vessels have invaded our shores. They have ridden roughshod over local fishermen. They have pulled up crab reimbursing them by law. traps. At present there is no way of Nothing is done by the administration to stop this action but a nice protest to stop it, which is completely inadequate. The Russians' answer to the stopping of convoys is an indication of how they act.

The least we can do is to make provision to compensate our own fishermen for the losses they have suffered. That is a perfectly justifiable goal. I hope the amendment will be favorably looked upon. I intend to discuss it more fully when I call it up.

Mr. DOMINICK submitted amendby him, to House bill 7885, supra, which ments (No. 314), intended to be proposed

were ordered to lie on the table and to be printed.

IMPROVEMENT OF THE NATIONAL
SYSTEM-

TRANSPORTATION
AMENDMENT (AMENDMENT NO.

313)

Mr. MAGNUSON. Mr. President, by request, I submit, for appropriate reference, an amendment, intended to be proposed by me, to the bill (S. 1062) to provide for strengthening and improving the national transportation system, and for other purposes. I ask unanimous consent to have printed in the RECORD a letter from the Chairman of the Civil Aeronautics Board, the Chairman of the Federal Maritime Commission, and the Chairman of the Interstate Commerce Commission, requesting the submission of the proposed amendment.

The PRESIDENT pro tempore. The amendment will be received, printed, and appropriately referred; and, without objection, the letter will be printed in the RECORD.

The amendment was referred to the Committee on Commerce.

The letter presented by Mr. MAGNUSON is as follows:

CIVIL AERONAUTICS BOARD, Washington, D.C., October 16, 1963. Hon. WARREN G. MAGNUSON, Chairman, Committee on Commerce, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: In its report to your committee dated September 30, 1963, on S.

1061 and S. 1062, the President's transportation bills, the Board stated with respect to section 4 of S. 1062, amending section 1003 of the Federal Aviation Act of 1958 so as

mission recommend that the provisions enclosed herewith be substituted for those of section 4 of S. 1062, and that they be enacted as being in implementation of the

jurisdiction of the Board, the Federal Maritime Commission, and the Interstate Commerce Commission to enter into joint rates and provide for their regulation by a joint board composed of representatives of such agencies, that although it had favored the enactment of similar provisions in bills in the prior Congress, the Chairmen of the three agencies had concluded that further analysis and evaluation of the technical problems of joint rates and joint boards was desirable. The Board further stated that legislation representing the joint efforts of the Board, the Federal Maritime Commission, and the Interstate Commerce Commission was under consideration in the executive branch, and that it deferred its comments with respect to section 4.

The three agencies have cooperated in the preparation of provisions intended as a substitute for section 4 of S. 1062, which are submitted herewith. These provisions differ principally from the present provisions of section 4 in that they provide greater detail with respect to the internal organization of the joint board, standards for its actions, and its powers and duties.

In this connection, attention is called to the fact that the joint board in being authorized to prescribe joint rates is given powers similar to those presently exercised by the three agencies with respect to individual rates, i.e., power to prescribe the lawful rate, as well as the maximum or minimum, or maximum and minimum rate to be observed. The three agencies recognize, however, that in the event that legislation similar to S. 1061, withdrawing from the three agencies authority to determine that a rate or charge is lower than a reasonable minimum rate or charge in the transportation of bulk commodities and certain agricultural and fishery products and withdrawing from two of them similar authority with respect to passengers, is enacted, it will be necessary to similarly limit the powers of the joint board in this respect.

The Board, the Federal Maritime Commission, and the Interstate Commerce Com

tation message that the Congress should "declare as a matter of policy that through routes and joint rates should be vigorously encouraged, and authorize all transportation agencies to participate in joint boards."

Advice has been received from the Bureau

of the Budget that there is no objection

to the submission of these amendments from the standpoint of the administration's program and their enactment would be in accord with the program of the President. Sincerely yours,

ALAN S. BOYD,
Chairman, Civil Aeronautics Board.
JOHN HARLLEE,

Chairman, Federal Maritime Commission.
LAURENCE K. WALRATH,
Chairman, Interstate Commerce Com-
mission.

ENROLLED BILLS PRESENTED

The Secretary of the Senate reported that on today, November 7, 1963, he presented to the President of the United States the following enrolled bills:

S. 876. An act to authorize the Administrator of General Services to convey certain lands in Prince Georges County, Md., to the American National Red Cross; and

S. 1201. An act for the relief of Dr. James T. Maddux.

VOCATIONAL EDUCATION

Mr. PEARSON. Mr. President, vocational education has been the subject of considerable congressional attention during this session of Congress. It has been viewed as a vital instrument for dealing with problems of unemployment, juvenile delinquency, and the elevation of the status of minorities. It was linked to the reduction of tariffs, through the Trade Expansion Act of 1962, and to area Status of vocational education programs

To provide

Teachers of vocational education subjects for youths in and out of school. Assistance for vocational educational programs for youths in and out of school. Training of practical nurses..

1946.

Vocational training for youths in and out of school in technical fields.

Area Redevelopment Act....

do...

Retraining for the unemployed in depressed

areas.

Retraining for unemployed, on-the-job training, and vocational training.

During the debate on the most recently considered program, H.R. 4955, I supported an amendment to reduce the fiscal authorization for the vocational education program to the level approved by the House. It will be recalled that the House had voted to authorize $630 million for the first 5 years for grants to the States. The Senate committee proposed $1.01 billion, or almost a 60 percent increase. It will further be recalled that the authorization voted by

the House was six times that originally requested by the President.

Mr. President, my vote to support the House version of the vocational education proposal was not one in opposition to vocational education. It represented support of an adequate program, and at the same time demonstrated my concern for the proliferation of vocational education programs.

I ask unanimous consent that there be printed in the RECORD at this point a brief table I have had compiled. It shows a number of the major vocational education programs currently in effect, and several proposals still pending. It lists the specific program, their current status, the type of training they provide, the administering agencies, and the appropriation for each.

There being no objection, the table was ordered to be printed in the RECORD, as follows:

areas.

Work experience and training for youth from 16 to 22.

vocational education programs at the State level.

Nevertheless, I point to the remarks contained in the minority views of the

Joint Economic Committee in the 1963 Joint Economic Report (S. Rept. No. 78, 88th Cong., p. 91):

The redundancy and inconsistency which exist among the adjustment provisions of the Trade Expansion Act of 1962, the re

$29,225,000 annually.

$5,000,000 annually through fiscal year 1965.

$15,000,000 annually through fiscal year 1964.

$14,500,000 annually through fiscal year 1965.

$655,000,000 over a 4-year period (fiscal year 1962-65).

Maximum per worker of $65 per week for 78 weeks.

$1,010,000,000 over 4 years.

Additional $200,000,000 over a 2-year period (fiscal year 1964-65). Additional $5,500,000 over 2-year period (fiscal year 1964-65).

$100,000,000 in fiscal year 1964; remainder to be determined later.

training features of the Area Redevelopment Act, the Manpower Development and Training Act, and the unemployment insurance program are impairing the effectiveness of

our training and retraining efforts. We believe it is urgent for the administration to examine the relationship of these programs to one another and to provide for their more effective coordination in order to better promote the objectives of the programs.