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Vol. LXXXVIII, No. 153 Ann Arbor, Michigan-Wednesday, April 12, 1978 Ten Cents 10 Pages
House to decide on tuition tax credits
By JUDY RAKOWSKY
First in a three-part series
The soaring cost of higher education has pin-
ched enough pocketbooks to instigate
legislative action. Yesterday, the House Ways
and Means Committee approved a bill that
would provide tax credits for parents of post-
secondary students, separating it from com-
posite legislation including elementary and
Tuition tax credits would provide straight tax
reductions to offset educational expenses.
THE PROPOSED plan provides for a $100
credit in 1978, $150 in 1979, and $250 in 1980 and
thereafter. The committee also voted to expand
the plan to include part-time students. If a
student elects six credits or more, then he or
she qualifies for the tax credit.
In response to yesterday's action, President
Carter reiterated his vow to veto any tax credit
legislation that is too costly or unconstitutional.
Rep. Carl Pursell (R-Mich.) represents one
of the largest college constituencies in the
country, and has strongly supported tax credit
legislation. "It looks pretty good at this point,"
he said yesterday following the committee's
ACCORDING TO the College Entrance
Examination Board, the average annual cost of
attending a public university has increased 56.6
per cent in the past five years, from $1,783 to
$2,790. Middle-income families are expected to
be hardest hit by rising higher education costs,
because their incomes exceed the limits for
loans and scholarships.
Various solutions have been proposed to ease
the financial burden middle-income families
bear in order to educate their children. The
Carter administration' has proposed a bill
which would expand the present grant and loan
programs. Over 100 bills have been proposed
for relief through the tax system, and tuition
tax credits are just one method.
ALternative procedures to alleviate the
tuition burdens that have been proposed in-
clude: tax deductions, tax deferrals, and the
'It's a quick political fix for
somebody's daddy who doesn't
really need it.'-Rep. William
flexibility to choose between a credit or a
THE CROSS-FIRE over tuition tax credits,
described by one representative as a "full-
scale war", is a recent development, but the
issue has been up for Congressional con-
sideration for almost 30 years. Pressure for
approval this year is reflected in the support of
250 legislators sponsoring or co-sponsoring
such proposals. .
Many supporters claim tuition tax credits put
tax dollars back in the hands of those who have
paid them. Critics, like Rep. William Ford (D-
Mich.), counter, "It's a quick political fix for
somebody's daddy who doesn't really need it."
The issue was brought into the Congressional
limelight again when President Carter in-
troduced, through Rep. Ford, a bill that would
expand the present grant and loan programs.
Carter's proposal has been dubbed a
"quickie, haphazard" bill by tax credit
proponents who claim it was thrown together
following a not-so-secret memo from Depar-
tment of Health, Education, and Welfare
(HEW) Secretary Joseph Califano.
The memo informed the President that
tuition tax credits are now a "hot issue" and
something should be done about them.
MOST OF THE tax credit bills are mirror
images of each other. They differ mainly in the
amounts to be awarded, who can qualify for
payments, and the provisions for reducing
payments above certain income levels.
Sen. Bill Roth's (R-Del.), popular bill would
give college and vocational school students a
credit of 50 per cent of educational costs or a
maximum of $500 beginning next year.
Qualified educational expenses include:
outlays for tuition, books, and lab fees, but not
costs such as room and board. His plan should
cost $1.2 billion the first year and $2 billion the
second year it is in effect.
Roth's proposal also provides credits for
elementary and secondary school taxpayers.
This segment of the bill is the.most controver-
sial as Attorney General Griffin Bell has
already declared it unconstitutional. The basis
for his decision lies in the constitutional provi-
See TUITION, Page 2
By SHELLEY SEEGER
If you go to the A&W Drive-In at
2405 West Stadium Blvd. be sure to ask
for Lois Watkins to be your carhop.
She's the one with long blonde hair, blue
eyes, about five foot two, walks with a
wiggle, winks a lot, and is a 52-year-old
Lois is probably the second oldest
carhop in the country. The only one
known who has her beat for longevity is
a grandmother in California who "hop-r
ped" for 18 years. Lois still has six
more years to go before she can tie the
BEING A CARHOP was not Lois's
lifelong ambition. But after her
husband's death in 1966, she needed a
job to.support her and her four children.
A neighbor, Helen Curtis, who worked
at the West Stadium A&W, pursuaded
Lois to apply for a carhop job. In the
spring of 1967, Lois began taking orders
and enjoyed it so much that she stayed
on year after year.
"I enjoy my work and I enjoy
working with the public. Being on my
feet doesn't bother," said Lois.
The customers seem to enjoy Lois as
much as she enjoys serving them. She
is often asked for by name. The tips she
gets show the cu tomers' admiration
for her. On a goo day she makes as
much as $22.
LOIS SEEMS TO get along with just
about everybody. She said, "All the.
See GRANDMOTHER, Page 7
Carter unveils new
Daily Photo by ALAN BILINSKY
LOIS WATKINS, a 52-year-old grandmother, is still shaking after 12 years
of carhopping at Ann Arbor's A&W.
WASHINGTON (AP) - President
Carter, launching a new effort to slow
inflation, asked business and labor for
voluntary cooperation yesterday and
promised not to use wage and price con-
trols except in "a national emergency
like all-out war."
The President also chided Congress
for not enacting his long-stalled energy
program and threatened ad-
ministrative action to restrict foreign
The inflation rate last year was 6.8
per cent. Prices rose at an annual rate
of 8.4 per cent during the first two
months of 1978. The administration had
originally predicted prices would rise
6.1 per cent this year, but some gover-
nment economists now say the increase
could be closer to seven per cent.
IN RULING OUT wage and price
controls, Carter said he will not try to
stem inflation by proposing actions that
would increase unemployment.
"I can't imagine any circumstances
under which I would favor wage and
price controls than a national emergen-
cy like all-out war," he told a news con-
ference following a speech to the
American Society of Newspaper
Carter said he would set an example
by seeking to limit federal pay in-
creases to about 5.5 per cent this year
and by vetoing legislation that would
CONGRESS WOULD have the final
say on salaries for most federal em-
ployees, although Carter could limit
pay raises for White House employees
by merely issuing an executive order.
Carter gave his White House staff a
pay raise of up to 25 per cent in March
1977 and another of 7.05 per cent in
The President said it is a myth that
the government itself can stop inflation.
"Let me be blunt about this point,"
Carter said. "I am asking American
workers to follow the example of
federal workers and accept a lower rate
of wage increase. In return they have a
right to expect a comparable restraint
in price increases for the goods and
services they buy."
AT THE NEWS conference, Carter
" He has not decided whether to seek
re-election in 1980.* He expects his
image, as reflected by public opinion
polls, to improve with the achievement
of more success in resolving such dif-
ficult issues as energy and inflation.
In the last Associated Press-NBC
News poll only 33 per cent rated Car-
ter's performance excellent or good
while 64 per cent gave him only fair or
poor marks. Three per cent were un-
" "Good and steady" progress is being
made toward a new Strategic Arms
Limitation Treaty with the Soviet
* He will veto tuition tax credit
legislation that he considers either too
costly or unconstitutional. "I think the
whole concept is fallacious and I don't
like it," Carter added. Meanwhile, the
House Ways and Means Committee ap-
proved a bill providing income tax
Top Soviet aide at'
VIOLA TORS UNDE TERRED BY NEW $50 FINE:
Handicapped parking unenforced
By AMY SALTZMAN
When the fine for handicapped park-
ing violations in Washtenaw countyewas
raised from $5 to $50 last February it
was hoped that individuals who had
selfishly been parking in these spaces
would stop. Unfortunately, stiffening
the fine seems to have spurred little
Sandra Sepesi, who was barn with
Open Spine, has been so frustrated by
the situation that she has started a
campaign of her own to try to combat
I'D LIKE TO congratulate the judges
for their effort in having raised the fine
to $50, but what good is it if it isn't being
enforced," staes Sepesi.
According to Ann Arbor police chief
Walter Krasny, however, handicapped
parking violations have been enforced
right along. "The people who park in
these places are gambling and losing,"
But Sepesi claims that, for the most
part, violators don't seem to be
"My blood has been boiling, as time
and time again I have pulled into
parking lots, mainly at Briarwood,
Meijers, and Arborland, only to find the
handicapped spaces filled with cars
with no handicapped stickers or license
plates on them," states Sepesi.
"IT'S A PROBLEM and we're aware
of it," said Bill Carlson, an assistant
manager at Meijers. "We've been en-
couraging customers confronted with
this problem to call the sheriff's
department, and have had more
response from them since then. We also
credits to help pay the cost of college
" He is in no "big hurry" to achieve full
diplomatic relations with China, but
eventually hopes to have such relations
with the Communist nation.
" Attorney General Griffin Bell made
the right- decision in electing to
prosecute three former top FBI of-
ficials who allegedly issued orders for
unlawful burglaries by lower-echelon
agents. A federal grand jury on Monday
indicted former FBI Director L.
Patrick Gray and his two top aides.
IN HIS SPEECH on the economy,
Carter said he expects industry and
labor to keep price, wage and salary in-
See CARTER, Page 10
parked cars were tipketed or given
At Briarwood, the situation looked a
little brighter. Near Penney's, three out
of four illegally parked cars were
ticketed and one car had a warning on it
provided by Briarwood security guar-
Near Hudson's, however, none of the
unauthorized cars were ticketed even
though the Briarwood notice had been
placed on the windshields.
"WHEN OUR SECURITY guards see
unauthorized cars parked in 'handicap-
ped parking spaces, they call the police
and ask them to come out and ticket the
cars," states John Wagner, the
manager of Briarwood.
Wagner adds, that attempts are being
made to improve the situation. "Some
of the handicapped parking signs are
faded, but we plan to put up new signs
in about a week."
Sepesi, however, has further com-
plaints about the parking situation at
"Briarwood is the absolute worst
place I have been to shop in all my 33
years. Whoever designed it had no
thought to the disabled, unless they are
in a wheelchair. Why are the handicap-
ped spaces that are provided at the far-
thest end of the building?"
THE HANDICAPPED parking out-
side of Hudson's is way off at a corner
of the building. "By the time I get in
there I'm too tired to go any further,"
Rick Spencer, chairman of the city's
Committee on Problems of the Han-
dicapped, feels there is no easy remedy
See HANDICAP, Page 7
By The Associated Press
Arkady Shevchenko, the top Soviet
employee of the United Nations,
remained in hiding yesterday while a
Soviet official sought to portray him as
a problem drinker influenced by U.S.
iptelligency agents to walk off his job
The official, Second Secretary
Evgeny Lukyantsev of the Soviet U.N.
mission in New York, said his gover-
nment would ask that Shevchenko be
fired from his post as undersecretary
general for political and Security Coun-
IN MOSCOW, a woman claiming to
be Shevchenko's wife said she believed
he was being held by Americans again-
st his will. But the U.S. government
denied involvement in the apparent
A U.N. statement issued Monday said
Shevchenko, 47, "was absenting him-
self" from his $76,000-a-year post
because of "differences with his gover-
nment" and was considered to be "on
Secretary-General Kurt Waldheim,
on a visit to Ireland, said yesterday that
he did not know whether Shevchenko
would seek political asylum, but:
"What is sure is what he does not want
to return to the Soviet Union."
LUKYANTSEV said Shevchenko
"had a drinking problem. It is quite
possible that American special services
or FBI or CIA have caught him . < .
From our point' of view it was as
In Washington, a State Department
" The tennis team for men and
women both came away with
9-zip victories, the men beating
Michigan State, the women best-
ing Western Michigan. See page 9
* Those hard-hitting Red Wings
are Stanley Cup bound after last
night's 5-3 win over Atlanta in the
first game of the playoff series.
See story on page 8.
spokesperson said: "The United States
in no way attempted to influence him
(Shevchenko) in his decision."
Secretary of State Cyrus Vance met
yesterday with Soviet Ambassador
Anatoly Dobrynin and the State Depar-
tment said the Shevchenko affair was
A SPOKESPERSON also reported
the Soviet Embassy had lodged a for-
mal protest with the State Department.
A senior U.S. official, who declined to
See TOP, Page 10
By MARK PARRENT
GEO officers to run unopposed
By MITCH CANTOR
While in the mist of a major effort
to organize for a May 12 Michigan Em-
ployment Relations Commission
(MERC) hearing, the Graduate Em-
ployees Organization (GEO) will hold
what will probably be a very quiet elec-
tion this week.
GEO is currently preparing for the
MERC ruling on whether graduate
student assistants (GSAs) should be
considered as students or employees.,
The union will begin analyzing infor-
mation this week which has been
gathered from approximately 1,800
~nrt~nnr ir.. cant .-t to C A c. i r-
bargaining rights. The information ob-
tained for the hearing will also be used
to organize for a possible fall strike.
The election, which will begin Thur-
sday night and continue through next
Friday, will feature four candidates
running unopposed for their respective
Incumbent President Mike Cark is
running for the same office. Steward
chair David Lechner is running for the
vice-presidency, presently held by
Marty Bombyk. Steward Greg Scott is
vying for the position of secretary,
which will be vacated by Linda
Kaboolian. Incumbent treasurer Rob
ballot, Cark said voters may write in
other members. He also said that about
175 of the GSAs have paid GEO dues
and are allowed to vote.
Clark said he is unhappy, though not
surprised with the lack of candidates in
"I'm disappinted, of course, to say
the least," Clark said. "We have dif-
ficulty in getting people to put in the
time necessary for this organization.
We would love other people to run.-
Candidate Scott agreed and also
blamed lack of election opposition on
Student turnout in the Michigan
Student Assembly (MSA) election was
relatively high again yesterday, accor-
ding to estimates by MSA officials.
Election Director G.J. DiGiuseppe
said about 1500 students voted yester-
day, and 1800 Monday. Today is the
final day of the election.
THE TURNOUT just from the first
two days' balloting is higher than any
student government election since 1973,
The MSA president, vice-president
and school and college representatives
will be elected in this election. Several
ballot questions will also be decided.
The high turnout comes despite
numerous problems in the ad-
ministration of the election. Some
polling sites which were scheduled to be
open over the past two days were not.
DiGiuseppe said that these sites will be
open sometime during the day today,
THE FOLLOWING is -a rough
schedule of polling sites which will be
open today: Daytime: Business Ad-
ministration, School of Education,
Engineering Arch, Public Health,
Flrieze Bilding~ . Law Shool.Crain