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January 22, 1978 - Image 1

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Michigan Daily, 1978-01-22

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Vol. IXXXViII, No. 93 Ann Arbor, Michigan-Sunday, January 22, 1978 Ten Cents 8 Pages Plus Supplement

Carter proposes
cutting taxes and
business deductions

From Wire Service Reports
WASHINGTON - President Carter
yesterday proposed a $24.5 billion tax
cut - designed to help ease the pain of
higher Social Security taxes and infla-
tion - aimed at low-and moderate-in-
come people who file uncomplicated
tax returns.
Carter also proposed a more exten-
sive tax "reform" program than antici-
pated, including an end to tax deduc-
tions for many state and local taxes
such as gasoline and sales taxes, sharp
curbs on medical expense deductions
and new curbs on tax shelters.
BUSINESSES also would pay lower
taxes and would benefit from several
new incentives, including an expanded
investment tax credit - but would lose
such advantages as deferral of taxes on
foreign operations and most entertain-
ment expenses.
CARTER'S TAX proposals come
down hard on some of the business com-
munity's favorite - and sometimes
most pleasurable - practices, saying
they are financed at the expense of gov-
ernment revenues. -
As widely anticipated, the admini-
stration's proposals would cut by 50 per
cent the amount of currently deductible
business entertainment expenses for
food and beverages.

MOST OF THE individual tax cut was
aimed at low-and moderate-income
taxpayers, with 94 per cent of the bene-
fits going to those making less than
$30,000, he said.
For a family of four, taking into ac-
count $3.9 billion in recently enacted So-
cial Security tax increases, the average
Carter tax cut would amount to $216 at
$15,000 income, $150 at $20,000 income,
and $24 at $30,000 income. A family
making $40,000 would pay a tax in-
crease of $80, however, and at $100,000
income the tax increase-would be $888.
Here is a breakdown of the proposals:
" $23.5 billion in individual tax cuts in
1979, brought about by lower tax rates
and a new $240-per-person individual
tax credit to replace the current $750
per person deduction. A credit general-
ly is more valuable than a deduction to
taxpayers in lower brackets, and the
new credit would benefit those making
about $22,000 or less.
" $6.8 billion in net individual tax "re-
forms" to offset the above cuts and
leave a net reduction of $16.7 billion.
Most reforms involve curbs or elimina-
tion of itemized deductions such as the
end to federal deductions for state and
local gasoline and sales taxes, and lim-
iting medical and casualty deductions


to amounts in excess of 10 per cent of
income. Medical deductions now are
limited to the excess of 3 per cent of in-
" $8.4 billion in corporate tax rate
cuts from 48 per cent to 46 per cent at
the highest income level and a libera-
lized investment tax credit, which
would permit business structures such
as buildings to be claimed for the first
See CARTER, Page 3

Chic sheik skis

His headdress flapping in the wind, Sheik Abdul Haddad of Lebanon, wea'ring the latest in "chic sheik" skiing
apparel, demonstrates his Middle Eastern ski technique on the slopes at Winter Park, Colorado.


Sadat raps Begin in address

From Wire Service Reports
CAIRO, Egypt President Anwar
Sadat accused Israeli leaders-yester-
day of sabotaging peace negotiations
and sdeclared, "They are in the
defendants' box before the court of
world history."
In a speech clearly aimed at
arousing Israeli and U.S public
opinion against the administration of
Prime Minister Menahem Begin.
Sadat told the Egyptian parliament
there is "hopelessness in our
breasts" and that Israeli intransi-
gence resulted from U.S arms sales
to the Jewish state.
DURING A meeting Friday with
Secretary of State Cyrus Vance,
Sadat said, ┬░he asked the United
States to sell Egypt the same kinds
and quantity of weapons Israel is
allowed to buy. U.S. policy has been
to sell Egypt only small quantities of
non-lethal weapons.
"I have asked him (President
'Carter) not to put an embargo on
us," Sadat said in the emotional,
sometimes angry, speech, which was
broadcast live on national television
and radio.
"I'm telling the U.S. people here is
the result of the limitless arsenal that
you gave, which makes a person like
Begin say he does not need the recog-

thing of an anti-climax because
Sadat offered no new proposals for
resuming the negotiations, broken off
last Wednesday when he recalled his
foreign minister from Jerusalem.
SADAT TOLD the assembly Israeli
leaders had deliberately undermined
his peace initiative, begun in Novem-
ber when he visited Jerusalem.
The only way to achieve peace, he
said, was for Israeli leaders to aban-
don "their expansionist aims" and
stop negotiating with deceit.
"I say the door to peace is still
open," Sadat said, "but on one condi-

tion - no treading on sovereignty or
on land, here or there."
The Egyptian leader revealed that
in preliminary talks with Israeli
Defense Minister Ezer Weizman in
December he had threatened war if
Israel insisted on keeping 20 Jewish
settlements in the Sinai Peninsula
after it was returned to Egypt.
"If you are serious about this,"
Sadat said he told Weizman, "please
tell Begin that I will not allow a single
settlement or give up a square inch of
my land even if this requires that I
fight you to the ends of the earth."

Renter's tax credit

nition of Egypt," Sadat declared.
"FOR THE information of the
stupid Soviet Union, I broke off the
negotiations because Israel did not
agree to specific mention of with-
drawal from the (Syrian) Golan
Heights, the (Jordanian) West Bank
and Gaza before mention of Sinai,"'
Sadat said.
The Soviets and Syrians have
accused Sadat of seeking a separate
peace with Israel at the expense of
Egypt's former Arab allies.
The 102-minute speech was some-

Michigan apartment
have a tax credit coming
the time to read their sta
Although somewhat con
1977 General Property 7
available to renters in p
come Tax form MI-1040 C
renters a similar credit to
should multiply your tota
by 17 per cent ( .17) . The
figure your share of the a
fee of your apartment (s
agement agent for this an'
The next step is to "
household income by 3.5 p
and subtract the income t
rental total.

happy. returns,
GO - The final step is to multiply the num-
renters may ber you have left by 60 per cent (.60)
te income tax and the remaining figure is your prop-
erty tax credit.
nplicated, the According to the booklet, this credit
Tax Credit is may not exceed $1,200.
art III of In- AS AN EXAMPLE, if your total rent
R-4, and gives and annual'fee for 1977 was $1,440 ($120
that of home- a month) and your total income was
$2,000 you are entitled to a property tax
e form, you credit of $44.80 on your income tax.
A rent for 1977 - To include the credit in your Michi-
n add to that gan income tax report, the final figure
innual service should be carried to line 22 of the MI
nee your man 1040 form and the entire 1040-4 form
eeourshould be attached to your income tax
multiply your return.
er cent (.035) As part of your income tax return, the
total from the property tax credit claim is also due
April 17, 1978.

Daily Photo by PETER SERLING
Engineering student Ken Urtel plugs away diligently at his Saturday night
studies in the Undergraduate Library snack bar.
Academc1 anxiety
jitters m--ore nerves

Escaped Cambodian
describes atrocities

Tuition and dorm rates aren't
the only student problems on
the rise around campus.
"Generally speaking, there
has been an increase in emo-
tional and physical problems
among students," said Ken
Newbury, a pilot program aca-
demic counselor.
Newbury said the problems

students are facing, especially
those of freshpersons, range
from depression and muscle
tension to ulcers.
"The problems students are
facing are real," Newbury
added, "I've seen students
crying after doing well on an
exam. It's not uncommon for
someone to get an 'a' on an
.See ANXIETY, Page 2

escaped from his native Cambodia
after two years of seeing starving
people in hospitals hide the bodies of
the dead so they could eat them. He
saw his parents, his brothers and
sisters, and his children die, one by
one. '
Yathay, a 34-year-old civil en-
gineer, arrived in Washington Fri-
day, telling his story under the
auspices of the American Security
Council, a private group which
supports and lobbies for American
military spending.
He said at least 2.5 million people,
of a total population of six million,
have died since the communist
Khmer Rouge took power in Cam-

Rouge took power. After a moment of
stupefaction, all the people in the city
were happy. They acclaimed the
victors. We thought peace had ar-
rived and we'd be able to work after
five years of disaster and destruc-
"But after a few hours, the order
came to evacuate the city of Phnom
Penh. Everyone had to leave -
soldiers, civilians, monks, the
wounded and sick, even women
giving birth.
"WE WALKED in single file. A lot
of the children and the sick died on
the way. After 10 days, we crossed a
river and reached Cheu Khmarr. The
next day, the work in the fields
began. We worked 12 hours a day;




Women targets of night crime

It is 11:10 on a Wednesday night. A woman
emerges from the Undergraduate Library, anxious to
get home. She sighs in disgust as she realizes the next
Nite Owl bus won't leave for another 20 minutes and
decides to walk.
As she gets further from campus she begins to get

college campuses: it's dangerous to walk around at
night alone.
In the past few weeks, with the reports of slayings
of three women in a sorority house at Florida State
University and a series of knife attacks at Michigan
State, women here have become more aware, but not
necessarily more careful.
"People aren't taking as many precautions as

don't sit around and talk about it anymore, but
nobody walks alone, either," she said.
"I think last year there was a lot of peer pressure
not to go out by yourself," said Berke. "People would
get yelled at by their friends if they did.it, so they
rode the bus or found an escort."
Escort services are still available for those who

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