Nation/World
University Daily Kansan / Friday, September 29, 1989
7
House approves Bush tax cut
Democrats say cuts will help wealthy only
The Associated Press
WASHINGTON — The House yesterday approved a proposed cut in capital gains taxes, rejecting arguments from Democratic leaders that the cut would buy a windfall for the rich at the expense of a bigger budget deficit.
A nearly solid bloc of Republicans — only Doug Bereuter of Nebraska defected — was joined by 64 Democrats, mostly from timber and farm areas, in the 239-190 vote that could redeem Bush's campaign promise to tax investment income at a lower rate than wages.
"The tax reduction fits well with the economic and tax policies that
have guided this nation through 82 record months of growth, creating hundreds of thousands of new, productive and lasting jobs in our nation," said House Republican Leader Robert H. Michel of Illinois.
Capital gains are profits from the sale of stocks and other investments.
Majority Leader Richard Gephardt, D-Mo., said the plan was "a $25,000-a-year tax cut on average to 375,000 American families, the wealthiest families in America, for some decision they already made not for something they might do in the future."
The Joint Committee on Taxation estimates that the proposal would cut taxes for 8 million couples and individuals, with 80 percent of the benefit going to those with total yearly incomes of more than $100,000. Those making less than $50,000 a year would get 5.6 percent of the benefit
The House rejected a Democratic leadership plan that would have junked the capital gains tax cut and
sought to increase incentive for saving by expanding tax-deductible IRAs.
Restoring a lower tax rate for capital gains would reverse an important part of the 1986 tax overhaul, generally recognized as the biggest domestic achievement of the Reagan administration. That law cut tax rates across the board, but ended special treatment for capital gains and reduced or ended such deductions as state sales taxes and Individual Retirement Accounts.
The capital gains reduction, which is considerably different from the one Bush proposed, is part of a massive bill whose chief purpose is to reduce the budget deficit. A final vote on the package is likely next week.
The plan is especially attractive to many lawmakers because, economists say, it is likely to generate an additional $9.4 billion during the next three years by encouraging investors to sell long-held assets. This would help Congress meet its deficit-reduction goals.
Capital gains tax cut effect on revenues
Estimated net effect of 30% capital gain tax cut through Dec. 31, 1991, to be followed by inflation indexing of capital gains
SOURCES: Chicago Tribune,
Joint Committee on Taxation
Knight-Ridder Tribune News/JOHN HANCOCK
Senate approves $600 million for Star Wars
WASHINGTON — The Senate, caught up in a debate about the future of the Star Wars program, reversed its position yesterday and restored $600 million for the missile-defense shield.
The Associated Press
The action on the overall $288 billion defense spending bill came in
response to appeals from several lawmakers, including ranking members of the Senate Armed Services Committee.
On Tuesday, the Senate overwhelmingly agreed to a $100 million reduction in Bush's request for the government in the fiscal year beginning Sunday.
But by a slim vote of 53-47, the
Senate on Wednesday restored two-thirds of the money it had cut for Star Wars, formally known as the Strategic Defense Initiative, as it adopted a budget for the program of $4.3 billion.
approved amendments:
The Senate was expected to complete work on the spending bill later in the dav.
Earlier in the day, the Senate
- requiring that $820 million of the money for Star Wars be used for research on lasers and particle beams.
▶ allowing the use of defense department funds for a multinational antinarcotics strike force if such a group is formed.
World Briefs
PERSIAN GULF CRASH: Two U.S. Army pilots were rescued uninjured from the Persian Gulf after their small helicopter crashed during a night patrol exercise, the Navy said yesterday.
Nicos Spanos, the neurosurgeon, said he operated for 45 minutes on the hurtle.
The injured turtle was taken to the government fisheries department. Its director, Andreas Demetropoulos, said he took it to the Nicosia General Hospital "for specialized brain surgery since she had been bashed on the head."
The turtle was recuperating at a fisheries department turtle hatchery near Pephos on the west coast of the east Mediterranean island.
"It was not a difficult operation, but it was undeniably an interesting one," Sagnos said.
The English-language daily newspaper said the female turtle was found floating in the water off the east coast with its skull broken, apparently hit by a boat's propeller.
TURTLE SKULL OPERATION:
The chief neurosurgeon of Cyprus' main hospital was summoned urgently to operate on the broken skull of a three-foot sea turtle, the Cyprus Mail reported yesterday.
The OH-58D helicopter was operating from the missile fritter US Rentz when the crash occurred, 65 miles northeast of Bahrain about 10 p.m. Wednesday, said Petty Officer Joseph Bartlett, spokesman for the Navy's gulf-based force.
MISS MISSOURI CHOSEN: After two weeks and four rejections, a
UKRAINIAN LEADER OUSTED;
the conservative chief of the Ukrainian Communist Party yesterday lost his position as head of the Soviet Union's strongest political machine to a progressive protege of President Mikhail S. Gorbachev.
Mussburger, who competed as Miss Twin Counties, finished sixth in the Missouri pageant in the summer. She said she had planned to compete again next year but decided to accept the title instead.
Gorbache sharply criticized the dictatorial style of the ousted official, Vladimir V. Shcherbitsky, who ran the Ukraine and its 50 million people with an iron hand for 17 years.
From the collections of Royal Robbins and Ruff Hewn
The new Ukrainian party leader is Vladimir A. Ivashko, who was Shcherbitsky's second-in-command and who three weeks ago used the pages of the daily newspaper Izvestia to sharply criticize absolute commanders unresponsive to the public.
pageant turned down the crown, apparently because pageant rules would make them inelegible to compete until 1991 in the state and national pageants.
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He was retired in a meeting of Ukrainian Communists, which Gorbachev attended.
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Pat Meusburger, 25, a television newscaster at station KSNF in Joplin, on Wednesday accepted the crown that was given up by Debye Turner when she was named Miss America on Sept. 16.
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