Weidnesdoy, July t21,1976

THE MIGHiGAN DALY

Page Thrwee


Senate extends tax credits

WASHINGTON ('-The Senate voted
vesterday to extend for at least 8 months
S15-billion-a-year package of individual
tax cuts intended to fight the economic
recession.
The extension, which is expected to
wia House approval, would protect most
Aiericans from an increase in the in-
caine tax through Dec. 1, 1977.
Can a 66-28 vote the Senate accepted an
amendment by Sen. James Allen (D-

Ala.) that continues the major part of
the reduction for 8 months. The Senate
Finance Committee, in writing the tax-
revision bill to which the cuts are at-
tached, had recommended a 12-month
extension,
IN ANOTHER action affecting millions
of taxpayers, the Senate voted 50 to 12 to
continue allowing full deduction of all
state and local gasoline taxes. The Fi-

nance Committee had recommended
limiting. the deduction to that amount
above $50 a year.
Here is how the extension would affect
typical families: A four-member family
earning $15,000 a year would pay $180
more if there were no extension. For a
single person earning $8,000, the figure
is $182; for a couple with no children
and earning $10,000, the figure is $20.
Hardest hit by a failure to extend the

tax reduction would be poor, working
families with children. A $6,000 per year
family would lose $45 a year if the tax
cuts were not renewed.
BEFORE THE Senate resumed work
on the tax bill, the Finance Committee
opened hearings on accusations by sev-
eral senators that the 156-page bill caters
to special interests.
However, the first day of hearings
gave no indication that the committee
would reverse itself on dozens of amend-
ments that aimed to provide hundreds
of millions of dollars worth of tax relief
to businesses. Many of the amendments
would affect only one or two companies.
Allen's amendment to extend the in-
dividual tax cuts through Dec. 1, 1977,
came as a surprise.
AlLEN SAID an extension through the
full calendar year was necessary to give
taxpayers full benefit of the major part
of the reduction, which is a $35-per-per-
son tax credit. Virtually all individuals
pay taxes on a calendar-year basis, not
the fiscal-year concept embraced by
government.
Despite all the argoaments, however, it
is generally agreed that barring a sharp
increase in inflation, the credit probably
will be made permanent sometime next
year.
The package of tax cuts technically
expired on July 1. But workers were pro-
tected against any increase in payroll
See SENATE, Page 10
Debating a debate
The race for the Democratic nom-
ination for Senate in the August 3 pri-
mary has started to heat up. Secretary
of State Richard Austin has been blast-
ed for his refusal to appear on a de-
bate with the other Democratic can-
didates on the Lou Gordon show. Rep.
James O'Hara of Utica, Rep. Donald
Reigle of Flint, and Birmingham attor-
ney James Elsmen criticized Austin for
not waving his right to equal time when
he turned down the debate - forcing
Gordon to cancel the debate. "If he isn't
willing to face the issues and voters di-
rectly," Riegle said, "then the question
arises why is he running for the Sen-
ate?
Snack salute
The potato chip is 123 years old thi
month. The Snack Food Association of
the United States, holding its annual
convention, says Cornelius Vanderbilt,
who frequented a restaurant in the re-
sort town of Saratoga Springs, one eve-
ning in 1853 sent back a batch of french
fried potatoes as "too thick." The chef,
to spite Vanderbilt, sliced his potatoes
very thin, fried them to a crisp and
salted them heavily. Vanderbilt loved
them and the potato chip was born.
0
Happenings...
... The Lincoln exhibit at Briarwood
Mall will be open from 9:30 a.m. to
9:30 p.m. ... and the Art Fair opens
all around town today.
Weather or not
It will be partly sunny today with
highs near 80. Chance of rain is 20 per
cent. A good day to check out the art
fair.

Escape route
AP Photo
Police enter through a manhole in the street yesterday, the sewer which burglars used to tunnel their way into the safe
deposit vault of a bank in Nice, France over the weekend. The thieves rifled the vault of cash, jewels and other valu-
abies totaling $10 million.
Court us legality
t of state bottle petition

By BARBARA ZAHS
ie Michigan Supreme Court yesterday
relased to hear a case challenging the
legarity of a group of petitions that would
place on the November ballot a proposal
t) ha' throwaway beverage containers.
The court said that it would not review
last Wednesday's Appeals Court decision
which upheld the legality of the petitions
sahatitted by the Michigan United Con-
sestiun Clubs (MUCC).
OPPONENTS of the throwaway ban,
including bottlers, soft drink manufac-
turers, and labor leaders, had tried to
ha: - the petitions invalidated on the
basv, of certain technical flaws.
The title is defective because it does
n5 state that the purpose (of the bill)
is to ban non-returnable bottles," claimed
Thomas Downs, the Lansing attorney
representing the bill's opponents.
Downs also contended that the peti-
tiOns, filed June 4, should have been
submitted by May 26,
BUT THE Appeals Court, in a 2-1
decision, ruled that the objections were
too minor to warrant invalidation of the
Petitions

With the Michigan Supreme Court's
refusal to hear the case, the only step
remaining before the measure is placed
on the ballot is certification of the peti-
tions by the State Board of Canvassers.
A 1 p.m. meeting in Lansing has
been scheduled for today to determine
if the 400,000 signatures submitted by

the MUCC can be accepted.
THE SECRETARY of State's office
has already reported that the petitions
contain more than the 212,000 valid
signatures needed to lace the throwaway
ban on the ballot.
See COURT, Page 10

55 m.p.h. limit proves effective
By MARK CLANCY independents and others who are paid by
Like it or not, the 55 mph speed limit the mile, claim that the limit is costing
for Michigan highways is here to stay. them money and hurting the trucking
That's the opinion of Daniel Minahan, industry.
one of the authors of the University's A cost/benefit analysis published in
Highway Safety Research Institute report Traffic Engineering shows that the 55
on the speed limit. mph limit is uneconomical, especially
The study reveals that the towered since its original purpose - gasoline con-
speed limit has been effective in re- servation - has lost much of its im-
ducirg traffic accidents and fatalities portance. Whether the lower speed limit
statewide. actually saves gas is another subject of
IN SPITE of this benefit, there is still contention, although proponents claim
considerable opposition to the limit, a 1 to 3 per cent savings in total gaso-
more than two years after it was im- line consumption since the limit went
posed. Many argue that a 55 mph limit into effect.
is unenforceable on highways built to Nevertheless, Minahan argues, "the
be traveled at 70. Truckers, especially See 'U', Page 10