August 7, 1976

Sen 49-22, passes '76 tax bill, described as longest and most complicated tax bill in 2 decades; bill extends temporary tax cuts enacted in '75 for individuals and businesses, reduces estate tax, and provides tax credit against cost of higher educ of $100 per student in '77 that would rise in stages to $250 in '80; revenue loss if bill is enacted as passed by Sen put at $17.2-billion in '77, $16.4-billion in '78, $13.9-billion in '79, $14.5-billion in '80, and $15.5-billion in '81; Sen rejects 2 provisions that were backed by Ford Adm; 1st, proposed by Sen Robert Dole, that would raise personal exemption, now $750, to $1,000, is defeated 57 to 29; 2d, that would reduce capital gains tax on property held for more than 5 yrs, is defeated 43 to 39; Sen Russell B Long, floor mgr of bill, feared inclusion of capital gains tax provision would endanger entire bill (L)

Shah of Iran says US must continue to sell arms to his country or risk instability and war in area, news conf for reporters traveling with Sec Kissinger; Kissinger says US attaches 'great importance to relations with Iran' as well as to role Iran plays in security and balance of area (M)

Police open fire in Soweto to disperse youths attacking transporation systems in continuing effort to keep black workers from jobs; official toll from 3 days of rioting is 4 dead and 30 wounded; officials comment; illus (L)

Piatigorsky, Gregor

BLS repts nationwide unemployment rate rose substantially in July '76 from 7.5% to 7.8% of labor force despite big increase in number of persons with jobs; most of jobless rate increase was among persons who have been out of work for less than 5 wks, which includes new job seekers; number of jobs increased by 400,000 during mo, with total employed rising by 3.8-million to 87.9-million; number of jobless workers in July was 7.4-million, up 280,000 from June; White House press sec Ron Nessen concedes 'disappointment' at July figures; AFL-CIO pres George Meany and United Steelworkers head I W Abel comment; Abel urges immediate passage of Humphrey-Hawkins full employment bill; BLS Comr Julius Shiskin, testifying before Cong Joint Econ Com, says recession recovery, including creation of new jobs has been 'about avg' compared with earlier recoveries; Shiskin illus; graphs show seasonally adjusted unemployment rate, July '73-July '75, total unemployment, Aug '75-July '76 and total employed, Aug '75-July '76 (M)