THE UNIVERSITY DAILY KANSAN
VOL. 101, NO.83
THE STUDENT NEWSPAPER OF THE UNIVERSITY OF KANSAS
ADVERTISING:864-4358
WEDNESDAY JANUARY 29,1992
(USPS 650-640)
NEWS:864-4810
Bush shows revival plan for economy
The Associated Press
PresidentBush
WASHINGTON—President Bush proposed election-year tax breaks and business incentives to revive the U.S. economy last night and vowed, "We're going to lift this nation out of hard times."
Bush also announced dramatic cuts in the U.S. nucleararmament.
In his annual State of the Union speech, the president challenged the Democrat-controlled Congress to back his economic programs by March 20 or face a political fight. Invoking Persian Gulf War rhetoric, he vowed the recession would not last.
"The centerpiece of his economic plan was a bid to put more money in peoples' paychecks by lowering tax withholding rates — even though it would mean smaller refunds a year from now. Bush said that the plan would pump $25 billion into the economy. It would increase take-home pay by an average of $300 for more than 90 million wage-earners, the White House said.
Bush also called for a tax credit of up to $5,000 for first-time homebuyers, in addition to tax credits and deductions, to help low- and middle-income Americans obtain health insurance. He proposed a substantial boost in the tax breaks that businesses can claim for depreciating equipment and insisted anew on a capital gains tax cut.
Bush discussed the benefits of a reduced military bread from the disintegrated Soviet Union, saying that he would ask Russian President Boris Yeltsin on Saturday to agree to eliminate all land-based multiple warheads and said Yeltsin's initial response to Bush's proposal was very positive.
If Yeltsin agrees, Bush said, the United States will eliminate all MX missiles, reduce the number of warheads on Minuteman missiles and cut the number of warheads on sea-based missiles by about one-third.
He proposed to cut defense spending by $50 billion and use the savings to finance tax reductions.
Bush's plan also would freeze federal spending on most domestic programs at current levels. Benefit programs in the health care and Medicare would be even, pled.
The major parts of Bush's program:
The major parts of Bush's program:
- Income tax, withholding tables
would be adjusted at once by the Internal Revenue Service to give many
Americans more take-home pay. Even though that would reduce the size of next year's refunds, Bush said the move would put $25 billion into the economy in the next six months. Increases in take-home pay would increase the average income to more than $600 for two-income families, the administration claimed.
The personal exemption for dependent children, now $2,300 per child, would be raised by $500 per child to $560. A case would be laid out effectively next Oct. 17.
First-time homebuyers would receive a tax credit of up to $5,000 for homes bought this year, with half of the credit applied to 1992 taxes and over $199.90 taxes.
Up to $10,000 could be withdrawn from Individual Retirement Accounts without penalty for first-time home purchases.
All families could deduct the interest they pay on student loans.
- The capital gains tax, the tax on profits from the sale of stock, real estate and other assets, would be cut from its current top rate of 28 percent to a maximum rate of 15.4 percent for assets held at least three years.
Business: as could take an extra 15 percent depreciation allowance to encourage them to invest in more equipment and machinery.
Tax credits and vouchers to help low and middle-income families buy health insurance, up to a maximum of $3,750 per family. Bush is expected to spell out his health insurance program next month.
Michael Gaines, professor of biology, has accepted an offer to head the biology department at the University of Miami beginning this fall.
Lack of aid prompts prof to quit
By Ranjit Arab
Kansan staff writer
Abiology professor who has been at the University of Kansas 22 years says that he is frustrated with what Gov. Joan Finney hasn't done and that he is leaving.
Michael Gaines said yesterday that the had accepted a position on Fall 1992 as head of the biology department.
"I think we have reached a point where there is a lack of state support," he said.
Finney's refusal to support the Hoch Auditorium renovations was a perfect example of the neglect, he said. Gaines taught Biology 104 in the auditorium.
"I'm not excited about going to Miami," he said. "It's just something that I have to do."
He said that he knew of two other faculty members who were considering leaving the University for similar reasons and that other faculty members would leave KU if changes were not made by the Legislature.
He said he understood the problems of the economy but called Finney the anti-higher education governor.
Gaines said KU paid its faculty lower salaries than its peer institutions. Although he would not disclose the salary he will receive at Miami, he said it included a significant raise.
"In that case, the taxes are an investment well spent." he said.
Gaines said the decision to leave was not easy.
Games said the decision to leave was not easy.
"I have tremendous feelings about KIT." he said
"I have tremendous feelings about KU," he said.
He has taught an introductory course in biology, as well as classes in evolution. He also is the director of the Howard Hughes Scholarship Program, which aims to increase minority involvement in the sci-
Gaines will continue his affiliation with KU by remaining director of the Hughes program until 1995, he said.
He said another reason he decided to leave was that he had accomplished everything he wanted at KU and was ready for a change.
Ross Murfim, dean of arts and sciences at Miami, sa.d that Gaines had never expressed discontent with Kansas.
"I think he has a deep loyalty for Kansas and the institution," he said. "But I think it was the opportunity to become a chairperson and shape a department that attracted him to us."
James Muyskens, dean of liberal arts and sciences at KU, said he talked extensively with Gaines before he decided to leave.
Muyskens said he did not know whether Finney was to blame for the lack of support, but said he agreed higher education needed more attention.
"It is a real question of whether there is an understanding at the state level of what it costs to do scientific research," he said.
Muyskens said that the process to replace Gaines had not started and that he feared others might lie. KI soon
"I think there is a feeling among several scientists here that it is going to be hard for them to have the research funding," he said. "Obviously I'm doing everything I can to make them stay."
Del Shankel, interim executive vice chancellor, said support for higher education was the responsibility of the Legislature, not f. J. Finney.
"I think that the governor is wanting to provide more support for higher education," he said. "But we are in difficult times."
Shankel said Gaines' departure was a personal loss because the two worked together in the biology department.
"He has been an exceptionally good colleague and a good friend," he said. "I hate to see him leave."
Gambling issue spurs arguments
By Gayle Osterberg Kansan staff writer
Kansan staff writer
State Rep. Joan Hamilton. D-Topeka.draws a full house in a poker game.
TOPEKA - Debate heated up yesterday between sides of the state gambling issue as two opposing pieces of legislation began to take shape.
On the other side, the House Federal and State Affairs Committee yesterday heard representatives from the Kansas Lottery explain a proposal to install a statewide network of video lottery machines. A bill concerning the machines is expected to be introduced next week.
A constitutional amendment was introduced in the House Monday that would make all forms of gambling illegal except for lottery games already offered.
The actions come on the heels of Gov. Joan Finney's proposal to use video lottery revenues to help finance public schools and the signing of a compact allowing the Kickapo. Indians to operate a casino on their, servation near Horton, north of Topka.
The proposed amendment outlawing gambling was referred to the House Federal and State Affairs Committee.
If the resolution were passed by both House and Senate, it would be on the general election ballot in November.
The constitution allows the state to operate a lottery, historically defined by lawmakers as a form of gambling.
State Rep. Sandy Praeger, R-Lawrence, is one of 57 co-sponsors of the amendment. She said the resolution responded to the attorney general's written opinion that current law would allow a casino to operate on American Indian reservations.
Meanwhile, Kevin Scott, a representative from the Kansas Lottery, offered legislators a demonstration of a 5-foot black terminal featuring a multi-color screen and slots accepting range ranging from quarters to $20 bills.
"People voted on the concept of lot-ry in 1986," she said. "I don't really believe they thought they were voting or all forms of gambling. If we are going to *spand* the definition, people should have the chance to vote on it."
Scott said the lottery was preparing a draft of a bill providing for a number of new positions, a member of the Federal and State Affairs Committee is expected to
The machines offer poker, blackjack, bingo and keno games, which are played on the touch-sensitive screen.
Installing the machines would require the purchase of a central computer system, which would be hooked up to all the terminals in the state. Independent operators could purchase up to 10 terminals for each location. Scott said they expected the most common locations would be convenience and liquor stores.
introduce the bill to the House sometime next week. he said.
The proposal provides the state with 30 percent of the revenue during the first year and 40 percent in following years.
Profits from the games would be divided between the state operators and the host operator.
The video machine revenues are one of three sources of revenue the governor hopes will make up the shortfall created by a statewide property tax levy for education.
Speech viewers fault Bush
By Svala Jonsdottir
Kansan staff writer
Kansan staff writer
When President Bush presented his State of the Union address last night, many members of the KU community watched the basketball game instead.
But some who watched the president thought he failed to provide an effective plan for dealing with domestic problems.
"It was probably good politics, but he didn't seem to have a lot of new suggestions for the economy," he said. "His view of the economy may be to do as little as possible, but it doesn't seem to me that the economy is moving toward recovery by itself."
Mohamed El-Hodri, professor of economics, said he listened to the address but did not hear anything new.
Many of the president's proposals are not going to help those who need help the most. EI-Hodiri said.
"All the tax cuts are good if you have income, but if you don't have an income, a tax cut is not going to do much good," he said. "His idea of tax credit for health insurance is good for those who have jobs, but how do I pay for insurance while I am looking for a job?"
He said that the president's proposal for investment tax credit could help businesses but that alone would not bolster the economy.
What is slowing down the economy is that people are not
buying," El-Hodiri said. "It is not that people are scared to spend, they simply don't have the money. That is the issue nobody is addressing."
Burdett Loomis, professor of political science, said the first part of the speech had been effective.
"What he said about the patriotism and Desert Storm was politically very effective, but when he turned to domestic policy, I don't think he made much impact," he said. "Almost all of what he said, he has proposed before."
The address strength was that it was relatively moderate and did not promise any quick solutions, Loomis said.
"There was one political gimmick in there, which was the possibility of reducing the amount of taxes withheld, in order for people to have more money to spend, he said. "It is a short-term solution, because it does not change the amount of taxes, but just affects when you get your money."
Loomis said Bush did not present an effective plan for spurring the economy.
"He kept talking about working together, but his laundry list of proposals included things he should know will run into a lot of partisan opposition," he said. "I guess he was trying to have it both ways."
Stephanie Harsin, Topea freshman, was one of two students in McCollum Hall labs watching the address.
She said she had been curious about what Bush would say about the economy. She was not impressed.
Infidelity claims don't hurt Clinton in polls
The Associated Press
WASHINGTON — Most Americans do not believe that Democratic presidential contender Bill Clinton's marital fidelity should be an issue in the campaign and want the media to drop the matter, according to an ABC News poll released late Monday.
Fewer than 10 percent said they were significantly less likely to vote for Clinton as a result of the allegation, the poll showed.
The television network released its poll after Clinton and Gennifer Flowers earlier in the day accused each other of lying about the matter.
Eighty percent of 790 adults in the nationwide random survey said they thought that Clinton should remain in the race whether or not he had an extramarital affair.
Clinton denied having had a relationship with Flowers, a singer and Arkansas state employee who made the accusations in a paid interview with the Star tabloid and in a news conference on Monday.
ABC's poll has a margin of error of plus or minus 4 percentage points.
The ABC poll did suggest that claims of marital infidelity, if proven, could be damaging to Clinton. Twenty-six percent of the respondents said they could not vote for a candidate who had an extramarital affair.
On the other hand, 73 percent agreed with Clinton that his faithfulness to his wife was an issue between the two of them.