The Michigan Daily-Saturday, August 12, 1978--Page 5

U.S. plans more arms sales
WASHINGTON (UPI)-The admin- Pakistan, Spain and Thailand. the maximum allowed. Other proposed sales:
istration yesterday notified Congress If all of the latest group of sales are Despite its description as a "ceiling," eThailand would get ammunition
it plans to sell another $744 million in accepted by the countries involved, and the figure does not accurately reflect worth $33.5 million plus $10.9 million for
arms to seven countries under its arms if Congress does not vote disapproval all military sales abroad, however. 40,000 rockets for use by helicopters.
sales ceiling for this fiscal year. within the allotted time, the sales will Sales to NATO allies, Japan, " South Korea would get 37 self-
The notification seemed partially raise to about $6.2 billion the total of Australia and New Zealand are exem- propelled 155 mm howitzers, 1,100 TOW
designed to get the proposals before arms and military equipment sold so pted, as are military construction anti-tank missiles and radar for pin-
Congress, which has 30 days to disap- far this year under the administration's programs for such nations as Saudi pointing North Korea mortar fire worth
prove them by majority vote of both ceiling. Arabia. Those programs run into hun- $87.9 million.
houses, before the legislators recess for President Carter's self-imposed dreds of milions of dollars annually. " Spain would be sold 129 armored
Labor Day. ceiling for the fiscal year, which ends troop carriers and other tracked
THE PROPOSED sales include $263.5 Sept. 30, is $8.6 billion. Israel would get Shrike air-to-ground vehicles and three guided missile laun-
million worth of equipment for Iran, PENTAGON SOURCES said further missiles, Sparrow air-to-air missiles, ching systems worth $57 million.
$217.7 million for the nationalist proposals are expected to go to various types of electronically guided + Pakistan would receive 40 Mark-46
Chinese government on Taiwan and Congress within the next few days to "smart" bombs and artillery am- torpedoes and related equipment worth
lesser amounts to Israel, South Korea, push the year's sales volume closer to munition worth $93.6 million. $10.2 million.
Income tax cut bill may change in Senate
xthe actions already approved hy the ting few capital gains recipients. t people would be "worse off" under the worse off by the action taken," Blumen
He which discarded nerly all of would also eliminste the provisions af- House-passed $16.3 billion tax cut bill. thal told reporters.
House, wThe measure now goes to the Senate,
President Carter's recommendations fecting a taxpayers' 50 percent where the outcome is likely to be even However, the committee and Long
for tax code revisions in the name of maximum tax. the administration. represent Blumenthal's biggest ob-
reform. Long had already spoken out in favor l"We believe the American people are stacle.
" Further efforts to sim lifA tax of the second change. But he also has

-

" r rcn eiirts o sipin yax
return filing. Long has suggested more
people might use the simple standard
deduction form if they had available to
them tax credits for "these unusual
situations ... like a very high medical
expense or very high casually loss."
Long has said, and handlers of the
House tax legislation have conceded,
that the $16.3 billion in income tax relief
will not, for millions of taxpayes, offset
the effect of higher Social Security
taxes and inflation pushing incomes in-
to higher brackets. This year tax relief
should at least accomplish such an of-
fset, he said.
The House bill would reduce the
maximum tax on capital gains to 35
percent, compared with the present
theoretical top of 49 percent of what the
treasury says is the practical
maximum of about 40 percent.
Under existing law, although in
general half of capital gains is exempt
from tax, much of the exempt half can
be subjected to a 15 percent minimum
tax. Additionally, for high-earning tax-
payers, the exempt half also serves to
reduce the amount of their income that
cannot be taxed at more than 50 per-
cent, leaving more to be taxed at rates
up to 70 percent. It is the combination of
these factors that produces the 49 per-
cent top.
The House bill would eliminate the
minimum tax on capital gains, sub-
stituting a small alternative tax affec-

indicated he favors a strong minimum
tax.
He has indicated his basic approach
would be to reduce the amount of
capital gains subject to ordinary
taxation, now generally 50 percent. He
spoke favorably of a proposal he said
was made by the late President John
Kennedy to cut the taxable portion to 30
percent. It was not adopted at the time.
The House bill also would give
homeowners a break by permitting a
taxpayer to sell, once in a lifetime, his
or her principal residence and pay no
tax on the first $100,000 of profit. Long
had previously endorsed such a
proposal.
The House also adopted a provision of
considerable future significance.
Beginning in 1980, it would provide a
new method of calculating taxable
gains by allowing for inflation. Op-
ponents of this provision said that when
fully effective it would cut the revenue
from capital gains in half, costing
initially $4 billion a year.
Long has expressed approval of the
principle of such so-called indexing of
capital gains for inflation. But a source
close to him said he would be more
likely to look upon it as an alternative to
other ways of reducing the capital gains
burden, rather than to add it to other
. tax cuts, as the House did.
Treasury Secretary Michael Blumen-
thal said yesterday the American

Rhodesian guerrillas killed

GRAND REEF, Rhodesia (AP) -
Two black guerrillas blamed for taking
part in the massacre of 13 British
missionaries and children at Vumba
near Rhodesia's border with' Mozam-
bique were shot dead by government
troops, the military reported yesterday.
The bodies of the two, along with
weapons and ammunition from com-
munist nations were shown to reporters
at this border military airbase.
One man, apparently in his late 20s,
was shot in the face. His companion,
shot in the legs and chest, looked about
18.
A notebook, which a security force
spokesman said was found in the pack of
the older man, contained a handwritten
account, in English, of the June 23
massacre and a cassette tape of the
mission school choir.
Nine British missionaries and four of
their children, including a three-week-
old baby, were hacked and bludgeoned
to death with axes, logs and clubs by a
group of 20-24 black raiders at the school
20 miles west of here.
Since the guerrillas started their war
against the Salisbury government six
years ago, 36 white missionaries and
their children have been killed, 19 of
them last June. Yesterday was the first
time the government claimed killing or
capturing thoseresponsible.
The area is heavily infiltrated by
guerrillas of Robert Mugabe's Zimbab-
we African, National Union. Mugabe
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denied responsibility and blamed black
scout units of the Rhodesian army for
the deaths.
The notebook contained a detailed list
of money, radios, tape recorders and
household effects "captured from the
enemy" at the mission.
Asked why guerrillas would carry
such incriminating evidence as the
notebook, the spokesman said, "Every
time we capture terrorists or kill them
and get kit and equipment, we always
find notebooks in which they set out in
the most incredible detail - mostly lies
- accounts of what they have done. We
think it is to impress their superiors."
Editor's Note: This story was submitted
to Rhodesian military censors.
STUDENT
ACCOUNTS:
Your attention is called to the
following rules passed by the Re-
gents at their meeting on February
28, 1936: "Students shall pay
all accounts due the University
not later than the lost day of
classes of each semester or sum-
mer session. Student loans which
are not paid or renewed are sub-
ject to this regulation; however,
students loans not yet due are
exempt. Any unpaid accounts at
the close of business on the last
day of classes will be reported to
the. Cashier of the University and
"(a) All academic credits will
be withheld, the grades for the
semester or summer session lust
completed will not be released,
and no transcript of credits will
be issued.
"(b) All students owing such
accounts will not be allowed to
register in any subsequent semes-
ter or summer session until pay-
ment has been mode,"
,E

GEO meetings end

(Continuedfrom Page 2)
Bitner said he was notified by Edgar
Willis, chairman of the Speech, Com-
munications, and Theatre Department,
that Edna Williams, a TA last fall, was
losing her post for the winter term due
to poor teaching performance.
"He (Willis) told me that this par-
ticular person was not being renewed
for the winter of 1978 because from time
to time this person started teaching
there had been complaints about the
person's attitude in class - that this
person had treated the students like
children," Bitner testified.
The testimony supported the GEO
allegation that GSAs, like other em-
ployees, are rehired primarily on the
basis of their work records.
Later in the day, Veracruysee ac-
cused his adversary of leading
Felvebel's testimony. t t d
r. Cousens has led tewittesses an

Further on in Felvebel's testimony
Cousens objected, after which
Veracruysee said to the judge, "I'm
worried about one thing, Mr. Sperka.
Often when Mr. Cousens objects he
signals the witnesses (how to answer)."
Sperka did not comment on the
allegation.
The hearings will resume on Septem-
ber 20 in the Union.
Walk a mile.
Play Billiards
at the
UNION.
Open'til 1 a.m.
,Ai'A