(Continued from Page 1)
IF THE HEADLEE or Tisch tax
proposals pass in November, either or
"both would have far-reaching effects on
'projects like this o e.
Murray said the effects of the delay
would mostly be the time lost in selling
-the bonds and settling on construction
contracts, which are cheapest in the
winter. If the contract bids must be
delayed until after the April election,
Murray said, "we can expect a five to
ten per cent increase in construction
costs after the new season begins on
Belcher said he did not find out about
the deadline for submitting the bond
proposal until last week. However, he
said he is confident the project would be
approved anyway "if we show the
g facility debate delayed
the Michigan Daily-Wednesday, October 11, 1978-Page 7
Rep. Diggs quits
citizens the project is good for the city
and can be paid out of revenues."
MURRAY SAID Monday night that
he would not recommend constructing
any more parking structures which
would give the city debts greater than
30 per cent of the city's operating
revenues. However, he said because of
inflation, the annual debt payments
would diminish in dollar value and
revenue will increase.
Murray called the 30 per cent debt
framework his "rule of thumb" and
said yesterday "my rule would still
hold with or without Headlee." He went
on to explain that private companies
can figure their debts in terms of the
percentage of the company's sale
value, in which case a higher debt
status is tolerable. It cannot be figured
that way for public projects, "because
we can't sell our assets," Mujrray said.
When the bond is repaid in twenty
years, Murray said the interest will
raise the total cost to $4 million.
Belcher said Murray's view is a
"sound economic outlook" but he noted
that "most cities in Michigan have deb-
ts of 50 to 60 per cent" of their operating
revenues. Belcher added that ad-
ditional structures may be built by
using alternative financing methods.
He said the city may lease new parking
structures from private developers af-
ter those firms incur the capital in-
vestment burden. He said more parking
revenue may be obtained by raising the
parking rates also.
OTHER FUNDING methods, Belcher
said he may employ are partial funding
through the city's Economic Develop-
ment Corporation (EDC) or the Down-
town Development Authority.
"Parking structures are so key to
getting finances and developing and
restoring housing inthe downtown,"
Belcher said. He added, "When finan-
cial lenders look at the prospect of
financing any building in the downtown,
that's one of the things they look at."
Latta said seven parking structures
have been figured into the Planning
Department's capital improvements
budget as an eventual goal. Belcher
said he only plans two more structures,
including this one. Murray said, "It is
very unlikely we can do that and
remain financially solvent."
(Continued from Page 1)
the conviction is reversed or the
congressman is pardoned or reelected.
SINCE CONGRESS is slated I to
recess Saturday, 'Diggs' action was
seen mainly as a token gesture.
Diggs was convicted by a U.S.
District Court jury in Washington last
Saturday of defrauding the government
of 166,000 by padding the salaries of five
staff aides to help pay off his business
and personal debts, which are con-
But Diggs contended, as he did during
his trial, that other members of
Congress have "violated criminal
statutes that were much more venal"
and said he questions "Why I was
picked out as a target forprosecution"
by the Justice Department.
He refused to name names, but said,
"I think the same government that sent
the FBI after me would see fit to in-
vestigate these other matters."
Diggs claimed that "there 'is
something unholy" about the Justice
Department's alleged policy of "selec-
"This is the first time in the history
of this country that criminal charges
have been initiated against a member
of Congress under these conditions," he
omises veto for Senate tax cut
(Continued from Page )
" College students or their parents
would be allowed a tax credit for 35 per
cent of tuition costs to a maximum
credit of $100 in the current school year,
$150 in 1979 and $250 in 1980. This is not
in the House bill.
° " Repeal of the current individual tax
credit of $35 per person of 2 per cent of
the first $9,000 of taxable income, a
)naximum credit of $180. This and the
current $750-per-person exemption
would be replaced by a $1,000 exem-
ption. The credit is subtracted from
taxes owed; the exemption reduces in-
'come subject to taxation. The House
* An increase.in the standard deduc-
tions. The deduction for a single person
would increase from $2,200 to $2,300, for
heads of households from $2,200 to
$3,000 and for couples filing a joint
return from $3,200 to $3,400. The House
bill has the same increases for single
persons and couples but gives the heads
of household only $2,300.
" Expansion of the earned-incomed
credit, which rewards poor working
families who have children if the
families stay off welfare rolls. The
credit now is a maximum of $400 and
some is available to families with in-
comes up to $8,000. The House bill
retains those levels. The Senate bill
would raise the maximum to $600 and
make some benefits available to
families with incomes up to $11,000. For
the first time, the credit would be paid
as part of workers' paychecks.
" The deduction now allowed for
state and local gasoline taxes would be
repealed in both bills, meaning a small
tax increase for the 30 per cent of
Americans who itemize deductions.
" The special tax credit for the
elderly would be increased from the
current maximum $375 for a single per-
son and $562 for couples to $45 and $675.
There is nothing similar in the House
, In future years, income taxes
would be increased automatically if
federal spending exceeds targeted
limites, except in time of war or high
unemployment. Tax forms would have
to tell citizens exactly why taxes were
rising. This is not in the House bill.
" Seventy per cent of individual
capital gains, or profits from the sale of
assets, would be exempt from regular
income tax, compared with 50 per cent
under current law. The exempt portion
would be subjected to a graduated
''alternative minimum tax," which
would be paid only if it exceeded
regular income taxes. The House bill
would couple the current 50 per cent
exemption with a smaller alternative
" A special tax break would be allowd
for persons 55 and older who sell their
principal home without buying a new
6ne costing as much or more. The
profict from the first $100,000 of sales
price would be tax-exempt; the bill
provides a formula for computing
capital-gains taxes on the profits from a
higher sales price. The House bill would
allow a once-a-lifetime exemption for
$100,000 profit for all persons regar-
dless of age.
* A 1976 tax-law change that would
increase capital-gains taxes on
inherited property would be postponed
until Jan. 1, 1980.
* The maximum tax on corporate
capital gains would be cut from 30 per
cent to 28 per cent.
All of the discrepencies between the
Senate bill passed last night and the
less expensive House bill passed in
August are expected to be worked out in
a conference committee.
is preserved on
The Michigan Daily
Student Publications Bldg.
4209 Maynard Street
Dr. Davild Wi ley
Director of the African Studies Center,
Michigan State University
A lecture on Friday, Oct. 13-8 PM
"Ethics and Foreign Policy:
The U.S. and Wfrica"
the second in the 1978
DISTINGUISHED FACULTY SERIES
SPONSORED BY THE
Ecumenical Campus Center
921 Church St.
The lecture will be held in the Center's lounge. All
interested persons are invited to attend.
(Continued from Page 1)
;came after a meeting of executive
council members currently in the coun-
try, himself and Tribal Chief Jeremiah
The other two council members,
Prime Minister Ian Smith and the Rev.
Ndaganingi Sithole, are visiting the
United States and will be joined by
Muzorewa and Chirau later this week.
PRESID) T Carter said during his
press conf f yesterday he would
not meet with Rhodesian Prime
Minister Ian Smith during Smith's visit
to the United States. "There's no reason
for me to meet with him," he said.
Tiny rightwing white political parties
in Rhodesia were furious about the
proposals. "This means the surrender
and destruction of the white man and
his institutions in Rhodesia and a vic-
tory for the terrorists," said Rhodesia
National Party president Len Idenson.
Spokesmen for the black parties in
the transition government hailed the
announcement as a "tremendous
breakthrough" and a "giant step."
WHITE HEALTH and Education
Minister Rowan Cronje said schools
would remain free on black reser-
vations, while the $71 annual cost of
white state schools would be slowed not
just by lack of money, but also because
black children seeking to enroll would
have to live in the school area, must
speak English, the minority language,
and be in the proper age group.
He said implementation of the
changes could require several months.
"Our conclusions will not satisfy the
ultra-liberals, nor will the extreme
right like them," said Cronje. "Blacks
did not get it all their own way. We did
not get it all our own way. But the
solutions show our willingness to work
together... they're based on
pragmatism and reality."
The target date for black rule is made
more uncertain by the escalating six-
year war against Rhodesia by black
nationalist guerrillas, who vow to
disrupt any attempt to get blacks to the
Yesterday's announcement said land
laws in white areas - the suburbs of the
seven major cities - will be scrapped.
Blacks will be able to buy homes in any
suburb, said Cronje. But"new laws
tightening up on health and building
regulations will be effected
"THIS IS SO the character and stan-
dard of those areas ... will be main-
tained. In terms of the customs of our
black people, with the extended family
system there may be difficulties in
respect of housing standards and health
standards," the minister said.
Free medical clinics for blacks will
be retained, but Cronje said anyone
would be eligible for treatment at the
white hospitals, provided they can pay.
Accompanied by black co-minister
Gibson Magaramombe, Cronje told a
news conference that the Land Tenure
Act - the heart of Rhodesia's race
discrimination - will be repealed.
But he said black reservations known
as tribal -trust lands across half the
country are to be retained. Whites will
be allowed to set up trading posts in
small designated industrial and com-
mercial parts of the reserves.
More thanihalf the country's blacks
live on the reservations, mostly as
peasant farmers on communally-owned
land which have always been off limits
Until its partial repeal 18 months ago,
the Land Tenure Act divided this Mon-
tan-sized country into roughly equal
areas for blacks and whites.
"We accept enormous and traumatic
implications would follow a sudden
disruption of the communal concept
applicable to the tribal trust lands,"
Tribal chiefs and the previous white-
minority government argued that to
admit white traders would be unfair
competition to blacks.
White farmland was opened to black
buyers last year, and last August the
transition government, in the face of in-
ternational criticism of its racial
policies, outlawed discrimination in
hotels, swimming pools, theaters and
other public places.
'Jazzstars' thrill Hill
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another fiercely-paced adventure, in-
fusing the song with the strong sear-
ching quality so inherent in his and
Coltrane's styles. Rollins hit a strong
staccato line while Carter played a den-
se series of harmonic textures under-
;neath the two soloists.
The Milestone Jazzstars were an
,,exercise of contrasting styles from dif-
Jerent eras. Sonny Rollins' fierce bop-
ping pace had its roots in the fifties with
his work with Max Roach and Mles
Davis. McCoy Tyner derives his
mystical spirituality from his sixties
work with Coltrane, and Ron Carter's
passive coolness seems most at home in
this decade. Monday night at Hill, the
trio, plus drummer Al Foster, demon-
strated the ability to fuse all three
musical backgrounds into one coherent
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