Nation/World
Briefs
Republicans may be willing to skin capital gains tax cut
Senate Minority Leader Bob Dole has suggested that deadlocked budget bargainers remove the proposal to cut the capital gains tax. Republicans argue they are working on an aide said yesterday.
- imposed on property sales - be included in the defect-cut plan because it would
  damage the project.
An aide to the Kansas Republican denied that Dole was retreating on the capital gains issue. But he said Dole's plan to remove the issue from the deficit-reduction package was the best way to end the current budget talks impasse.
Dole's suggestion is the first indication that some Republicans are willing to accept a deficit-reduction plan without a cut in the budget. A recent report of Republicans repeatedly insisted that a reduction in that tax
Democrats have said Republican insistence on lowering the capital gains tax rate is the key stumbling block to the two parties working up a five-year, $300 billion defect-cutting plan.
In their search for ways to tame the deficit, federal officials are intent on taxing some of life's little pleasures: beer, cigarettes, jewelry — even your expensive new VCR.
Deficit-lowering taxes target cigarette, beer and jewelry
Although any deficit-reduction plan agreed to by Congress and President Bush is likely to rely chiefly on spending reductions and less-sweeping tax changes, it almost certainly would include several tax increases on consumers.
Top White House officials and congressional leaders already have reached tentative agreement on several tax increases that would bring in $59 billion over the next five years. Two-thirds of that would be paid directly by consumers, through higher prices for alcohol, cigarettes, airline tickets and a variety of higher-priced luxury items.
Negotiators have been struggling since May to devise a package of spending cuts and tax increases that would reduce the budget deficit by $40 billion in the next four years or $450 billion more in the following four years.
17 injured in Taiwan prison after rioters set it on fire
Prisoners rioted in a military prison and set it on fire, injuring 17 people, the Defense
More than 300 prisoners joined in the five hours of riots, which began Wednesday night when four prisoners belonging to two gangs confronted personal issues, the ministry said in a statement.
About 500 riot police and several military vehicles were called in to quell the rioting, local newspapers said. The prison is in the Taien suburb of Hsiniert.
University Daily Kansan / Friday, September 21, 1990
The ministry statement said prisoners set fire to a cell and that fire damaged most of the four-story building. It said 17 prisoners were hospitalized with burns and wounds.
From The Associated Press
Defense cuts criticized
The Associated Press
WASHINGTON — Defense Secretary Dick Cheney said yesterday that he would have to fire many soldiers, sailors and airmen if the house-passed version of the 1991 Pentagon budget became law.
Budget and troop reductions foolish, Cheney says
7
"Money also criticized as "incomprehensible" the House's decision to cut by nearly half the money available for the Strategic Defense Initiative, or Star Wars, to build an anti-missile defense.
The House on Wednesday approved a $283 billion Pentagon budget on a 256-153 bill, reflecting a reduced Sudan military threat and the ending of a hostage exchange with the Senate's $289 billion spending measure.
The new director of SDI, Henry Cooper, said in a separate statement yesterday that if the anti-missile project's financing was cut to $2.3 billion, as proposed by the House, "we will have no choice but to terminate many very successful major programs."
The Senate has proposed appropriating $3.7 billion for SDI, the same as the 1990 budget figure, but the Pentagon contends it needs at least $4.6 billion to carry out the tests required to keep the program on schedule. About $20 billion has been spent on the project since it was started in 1983.
"More importantly, the effect of this level of funding for SDI would be to postpone indefinitely our ability to deploy a system to defend the American people." Cooper said.
The rouse bill cut $24 billion from President Bush's defense spending request for the fiscal year that begins Oct. 1. The request includes military weapons such as the B-2 bomber and MX and Midget nuclear weapon
missiles, as well as a cut of 129,500 in the Pentagon's 2.1 million uniformed personnel.
"Even as Congress is telling us, 'Make sure you take care of the troops in Saudi Arabia, make sure you rotate troops in and out. They're also telling us to give back more money,' said Peter Williams, a spokesperson for Cheney.
Bush has proposed cutting 38,000 troops, although he recently indicated he would be willing to withdraw.
Cheney told a group of congressional staff members and trade industry representatives that he was particularly worried about the House troop-cut provision, Williams said.
"If we had to take cuts of that magnitude, we would not be able to do that through normal attrition. We would have to fire people," Williams said Cheney told the group.
"The secretary described the House action on SDI as incomprehensible." Williams said. "He said that is the part of the budget where we deal with the growing ballistic missile threat and the worry about the spread of nuclear and chemical weapons."
Cheney also took a verbal swab at Les Aspin, DWis, and chairperson of the House Armed Services Committee, who has helped lead a campaign to eliminate the B-2 bomber.
Williams said Cheney noted that the success so far of Operation Desert Shield, the large-scale deployment of troops and weapons to the Persian Gulf, was possible in large part because of a decade of heavy U.S. investment in military equipment and personnel.
Russian parliament urges prime minister to resign
The Associated Press
MOSCOW – The Russian republic's parliament yesterday declared that Soviet Prime Minister Nikolai Zhyzkov and his Cabinet were incapable of responding from economic rain and urged them to resign.
The lawmakers made a resolution on a 164-1 vote with 16 abstentions that also called on the national parliament, or Supreme Soviet, to "solve" the problems of the entire government of the U.S.S.R."
The resolution was referring to the Council of Ministers or Cabinet and not President Mikhail Vorobyov, who has backed a sweeping program to promote education at the market-oriented reform than Rvkshv wanted.
The national Supreme Society now is considering whether to approve it or one of two other proposes.
Russia is by far the largest of the country's 15 republics, and its lawmakers have considerable influence in the national Supreme Soviet, which is to meet Monday.
The Russian parliament last week threw its support behind the 500-day plan.
Under Soviet law, the national parliament could call an extraordinary meeting of its parent body, the Congress of Peoples Deputies, which has the right to force the prime minister and his Cabinet
out of office
Rykhzov has been under fire for months because of growing shortages of basic goods.
Ilya Konstantinov, a Russian parliament lawmaker from Leningrad, said the Soviet population had dropped by 50 percent.
"It's obvious that the Ryzhkov government could not and cannot correct the problem," he said. "It's also obvious that the Ryzhkov governa-
ment is adopting the radical program of economic reforms."
Thousands of demonstrators marched Sunday in Moscow and demanded Ryzhikov's resignation because of the failing economy. Many also called for Gorbachev to resign.
Ryzhik became prime minister in 1983, and he often has been seen in public next to the Soviet
But they disagree over which direction the Soviet economy should take as it tries to recover.
Ryzhkov said publicly that his government would not be able to implement the more radical 500-day plan and that he would resign if the national parliament voted for it.
Under Ryzhkov's proposal, the economy still would be controlled by the central government while moving slowly toward a market-based economy.
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