Pade Two THE MICHIGAN DAILY Friday, January 26, 1973 I _ .. t a NIXON'S BUDGET Domestic programs cut ACU-I1 Bowling Tournament SIGN UP NOW! M-UNION LANES I "Someof my favorite movie momentsof the year! Sophisticated, Biting and Droll. Donald Sutherland ogain demonstrates he is one of our most extra- ordinary contemporary actors." --William Wolf, Cue Magazine WASHINGTON (P) - President Nixon plans to drastically slash funds for a variety of housing, edu- cation and research programs in his fiscal 1974 budget, claiming all cutbacks are necessary to curb in- flation. It will be one of the tightest budgets in recent years, accord- ing to officials in the Office of Management and Budget. Nixon will send the massive document to Congress Monday. The Office of Economic Oppor- tunity is scheduled to be broken up and its responsibilities placedI in other agencies due to the rap- idly expanding economy, growing population, and new federal serv- ices, the Administration claims. Widespread cutbacks in funds for housing, health, education and social programs, subsidized public- service jobs, work training and community services are scheduled. Also scheduled for trimming are funds for science, technology, space and atomic - energy pro- grams. "There will be some screams from the scientific com- munity," said one official. The budget is reported to call House committee to probe tax system in hearings i WASHINGTON OP) - The House Ways and Means Commit- tee's review of the tax system is starting earlier and may last longer and probe deeper into fun- damental tax considerations than had been expected. Feb. 5 is the starting date for public hearings. Estimates of the time required for the hear- ings have gone up from six weeks to eight. Proponents of tax reform, in and out of Congress, are certain to be heard on proposals aired during last year's political cam- paigns for changes in oil indus- try taxes, rapid depreciation and the investment credit. But the committee is prepar- ing also to look at potentially broader revisions that could in- clude the rate of taxation on capital gains and the length of time an asset must be held to qualify for capital gains treat- ment ,and on the whole structure of estate and gift taxes. There were no predictions this early as to what the committee might eventually recommend. Any recommendation from Pres- ident N i x o n' s administra- tion would have an effect. But present plans are not to hear administration spokespersons until the end of the public ses- sions. There are proposals for shift- ing the tax system generally in the direction of lower rates, but more restrictions on deductions. Charitable deducations might be affected, sources said, but prob- ably not the deductions of spe- cial vrilue to homeowners: mort- gage interest and local real es- tate taxes. for big cuts in health programs, { including research programs ex- cept those dealing with cancer and heart disease, and hospital con- struction. The administration has been looking at a 19 per cent cut in federal support for education, in- cluding "Title I" funds to help disadvantaged children. The Commerce Department's Economic Development Adminis- tration is due for phasing out. Di- rect loans for rural power systems are no longer being provided. The administration announced on Jan. 5 an 18-month morator- ium on new subsidized housing programs for low income families. The budget will not call for any funds for new approvals in fiscal 1974, which starts July 1, sources say. Expected to be immune from the cutback is Nixon's general revenue sharing program ,a five-year, $30 billion spending program. Many of the cutbacks have been made effectivefor fiscal 1973,bthe current year, as Nixon has tried to cut spending by $10 billion to hold the budget to $250 billion. He has done it through impounding funds appropriated by Congress. The Michigan Daily, edited and man-1 aged by students at the University of Michian.tNews phone: 764-0562. Second Glass postage paid at Ann Arbor, Mich- igan 420 Maynard Street, Ann Arbor. Michigan 48104. Published daily Tues-' day through Sunday morning Univer- Pity year._ Subscription rates: $10 by carrier (campus area); $11 local mall (in Mich. or Ohio); $13 non-local mail (other states and foreign). Summer Session published Tuesday through Saturday morning. Subscrip- tion rates: $5.50 by carrier (campus area); $6.50 local mail (in Mich. or Ohio); $7 50 non-local mail .(other states and foreign). OPEN 12:45 SHOWS AT 1, 3, 5,7,9 P.M. ONE CAT... WHO PLAYS LICE AN ARMY! I "At least I know who I was when'1 "ot up this morning, but I think I must have changed several times since then"-Alice's Adventures in Wonderland-Lewis Carroll LATE SHOW-FRI. & SAT. open ll:05-start 11:15 not continuous with "Travels . ." TRADE MARK WONDERLAND An MGM Presentation in METROCOLOR gli ALL SEATS $2.00 r , l ui " I 7519 7 0 I NEXT- "THE MECHANIC" He does body work. When he fixes someone, they never work again. Subscribe to The Michigan Daily FEATURE TIMES Mon. - Fri.: 7:15 and 9:40 375 N. S.,LE RD5 76s-130oSat., Sun.:2, 3:50, 5:45, y:45, 9:10 AP Photo The fruits of war The newspaper's headlines acclaim the cease-fire, but for this Vietnam veteran, Michael Guerrin of Bridgeport, Conn., the war will never be over. He is being treated at the West 'Haven Veter- an's Hospital for a back injury he received in Vietnam. H-DAYS Agreement announced in Chicago teachers' strike CHICAGO (P) - A tenative set- Salaries for 1972 ranged from $9,- tlement in the longest teacher 796 to $16,716. strike in Chicago history - 11 days The board agreed to shorten the of class - was reached yesterday school year from 40 weeks to 39 after a 10-hour negotiating ses- weeks in 1973, and to allow ele- sion. bmentary teachers a half hour of Robert Healey ,president of the peaaintm wc eki Chicago Teachers Union (CTU), preparation time twice a week i said the chances for schools to the morning. Before the agree- open today "look good." ment, preparation time had been Lydon Wild, the board of edu- used at the discretion of princi- cation's negotiator, said most of pals for teachers meetings or oth- the funds for the $22.6-million pack- er purposes, a CTU spokesperson age will come from money saved said. by not paying striking teachers The strike began January 10 and and from money budgeted for 1972 closed most of the city's more but not spent. than 650 schools, leaving 558,000 The board of education agreed to children without formal instruc- the teachers' demands for a 2% tion. The system has 25,970 teach- per cent pay increase retroactive ers and the union claimed that to_ Jan. 1 and smaller classes. 94 per cent of them were on strike. I Due to overwhelming response I' I' Subscribe to The Michigan Daily $nn Arbor M(ujic Mart will be conducting new GROUP LESSONS IN GUITAR Beginning January 29th Rental instrument kits are available at a nominal charge applicable tQward purchase of the instrument. Private and group les- sons are also available in guitar, flute, re- corder, banjo, and drums. For information call 769-4980 jl~im #4,' Ip It u Ic Iota~ TONIGHT 336 S. STATE MON.-SAT. 9:30-9:00 Drugs and Madness in Ann Arbor MEET DR. KUNNES: Author of Your Money or Your Life and American Heroin Empirey McCabe Y and Mrs. iller Julie Christie Warren Beatty dir. Robert Altman "A jewel of a film. Beatty and Christie are perfectly fantastic." "Brilliant! Completely fresh ... provides the ultimate truth about the makina of America." N.Y. TIMES I