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August 02, 1973 - Image 5

Resource type:
Text
Publication:
Michigan Daily, 1973-08-02

Disclaimer: Computer generated plain text may have errors. Read more about this.

Thursday, August 2, 1973

THE SUMMER DAILY

Page Five

Bethlehem: Four years'
profit but no fed. tax

(Continued from Page 1)
would mean we're making mon-
ey instead of paying taxes. I'm
paying plenty of taxes; the gov-
ernment doesn't give me any
extra money."
SPOKESPERSONS for the IRS
in Washington stated that they
are barred by law from com-
menting on any individual's or
corporations' tax returns.
A highly qualified source who
has asked to remain unidenti-
fied maintained that Bethlehem
Steel avoids payment of federal
income taxes by using one ac-
counting method in preparing the
10-K reports and annual share-
holders' reports, and a different
method in filing IRS returns.
The source told The Daily that
the company "in all likelihood"
presented a corporate loss to the
IRS, while announcing substantial
profits to the SEC and its share-
holders.
Chicano
advocate
approved
(Continuedfrom Page3)
time operation could be squeezed'
out of the OSS budget.
"I'm sure I can find the mon-
ey," he said.
Johnson, however, later added
that it has not yet been decided
what s p e c if i c 0SS programs
would have to be cut to meet the
advocate funding needs.
FUNDING FOR the other top
OSS priorities listed by Johnson
remains uncertain. "We'll have
to weigh that question at a later
date," Johnson said of the Native
American advocate position.
Cuts have already been made
in the salaries of professional and
legislative OSS staff members,
Johnson said.
Presently the OSS funds three
full-time advocate positions, in-
Women's Advocate, and an edu-
cational innovator. Funding is
also provided for an Office of
Constituency Services to repre-
sent students not included in
these minorities.
MECHA HAS BEEN pushing for
a full-time Chicano advocate for
over a year now. In December
Chicano students confronted the
director of OSS in his office and-
the part-time Chicano "liaison
officer" position was created.

THE DIFFERENT income fig-
ures, the source said, could be
created by addition or subtraction
of depreciation allowances, loss-
es carried forward from past
years, and other items which
may be legally deducted from
corporate income when filing tax
returns.
Such deductions are consider-
ed standard for large corpora-
tions, and have been enacted into
law to encourage economic ex-
pansion.
A spokesman for Congressman
Charles Vanek (D-Ohio), who
yesterday issued a report detail-
ing similar tax situations for
several other large corporations,
said the explanation given by The
Daily's source is "accurate."
VANEK IS a member of the
House Ways and Means Com-
mittee, which began extensive in-
vestigation of corporate taxation
last summer.
Vanek's spokesman told The
Daily Tuesday, "we're aware of
the problem. Bethlehem is only
one of the firms involved . . .
they're getting away with mur-
der."
Ways and Means Committee
Chief Counsel John Martin would
not comment specifically on
Bethlehem Steel, but told The
Daily, "We all recognize that the
two different bases by which
corporations make accounts is a
problem . . . and it's one that
we've looked into for some time."
HE ADDED, however, that he
does not "see this accounting
difference in terms of a loop-
hole," but rather as a necessary
business procedure.
In the September 1, 1972, is-
sue of Forbes magazine, Beth-
lehem rzn a full-page advertise-
ment in which company Chair-
man Stewart Cort denounced
"careless rhetoric" on alleged
tax loopholes during the fall po-
litical campaign.
Cort contended in the ad that
Bethelem was "paying our fair
DAILY OFFRCIAL
BUT LT 'N
August 2, 1973
DAY CALENDAR
Deadline for estries in the Mar-
jorie Rapaport Poctry Contest, today,
The Hopwood Room , 1006 Angell Hall
4:30 pm.
Audio - Visual Films: Children's
Films, "Lorax," Aud. 3, MLB, 7 pm.
Univsi ,tr Ptayers: TenneseeWit-
liams, "t O A sot Tin ot," P -w
er Ctr., 8 pm.

share" of taxes, and listed a
total tax expense" of some $355
million in 1970-71.
CORT'S FIGURES matched
those presented in Bethlehem's
10-K reports for taxes other than
federal income: foreign, state, lo-
cal, property, social security, ex-
cise, sales, and utility taxes.
The only federal income tax
apparently included in Cort's
total of "tax expense" was $30
million paid in 1971.
The advertisement, however,
failed to mention the company's
federal income tax refund of $14
million in 1970.
BETHLEHEM S T E E L' S
spokesman refused last night to
comment on the Forbes ad.
Bethlehem Steel's
past four years
(all dollar figures are in mil-
lions. Parentheses indicate a
lax refund,)
Net Income Paid
After Expenses, Federal
Before Federal Income
Year Income Tax Tax
1969 $169.5 ($52.9)
1970 121.0 (14.0)
1971 201.2 30.0
1972 183.6 15.0
Totals: $675.3 ($21.9)
(Income figures exclude all non-
federal income taxes: state, local,
foreign, deferred, property, utility,
social security.) source: Bethle-
hem Steel Corp. 10-K reports, 1969-
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AP Photo
Marshall's judgment
Supreme Court Justice Thurgood Marshall yesterday refused to
reinstate a lower court order halting U.S. bombing in Cambodia
as unconstitutional. He claimed issuing a ruling would exceed
his legal authority.
TRANSCENDENTAL
MEDITATION
as taught by
MAHARISHI MAHESH YOGI
* NATURAL TECHNIQUE DEVELOPS FULL
CREATIVE ABIllTIES
j PROVIDES DEEP REST AND RELAXATION
" LIFE EXPANDS IN FULFILLMENT
INTRODUCTORY LECTURE
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