The Michigan]Daily
Vol. LXXXVI, No. 63-S Ann Arbor, Michigan-Saturday, August 7, 1976 Ten Cents Twelve Pages
House may
tab city for
research
The U. S. House of Repre-
sentatives is slated to vote Mon-
f;<day on a measure that may put
Ann Arbor in the running as a
site for a $45 million federal
health research center.
The facility, which is tem-
porarily housed in Cincinnati,
w a u I d perform chemical
research under the auspices of'
the National Institute for t)c
cupational Safety and Health
~,(NIOSl I), and employ up t 80
people, many of whom are top-
*, level research scientists.
ANN ARIOR repsrtedly rank-
ed high on a list of ten possi
ttte ysites tar the research f
bl ie o h eerh' - citity in an eartier studty re
quested by the Mouse appropri-
' -ations subcommittee last year.
The study was initiated because
Daily Photo by SCOTT ECCKER of apparent recruitment prob-
lems in Cincinnati at the tem-
. and the walls came tumbling down porary center.
Sen. Robert Taft (R-Ohio),
A bulldozer does a quick disappearing act yesterday with an old dwelling on Liberty, preparing for construction of "Michigan however, insisted last Novem-
Square," a four-level office and retail center. The builders will begin laboring next week, and are slated to complete con- ber - two weeks into the study
struction of Ann Arbor's latest example of contemporary architecture sometime next February. that the investigation be
See HOUSE, Page 4
Senate extends tax cuts

WASHINGTON (P-The Sen-
ate passed a bill last night that
freezes income taxes and makes
billions of dollars worth of
changes in the taxation of busi-
nesses and investors.
The m e a s u r e, which has
something for just about every-
body, was approved 49 to 22.
MOST IMPORTANT, the bill
would extend through Dec. 31,
1977, the individual and busi-
ness tax cuts enacted last year.
They are worth about $180 a
year ago to a typical $15,000-a-
year family of four.
The measure, debated by the
Senate for nearly six weeks,

aims to simplify the tax-filing
process while creating new tax
breaks for college students,
working parents, the elderly
and housewives.
Despite a fight by a bloc of
liberals, the bill carries a long
string of tax advantages for
high-income investors and busi-
nesses. But it would end some
abuses of tax shelters and make
it more difficult for the wealthy
to avoid taxation altogether.
The bill is sharply different
from the version passed by the
House last year. A Senate-
House conference will have to
reconcile the differences later
this month.

As a whole, the House bill is
less generous to high-income in-
vestors and businesses.
The Senate bill, however, aims
to provide specific relief to:
--PARENTS of college stu-
dents, by allowing a special tax
credit for tuition and similar
expenses;
--HOMEOWNERS, by allow-
ing a credit for certain energy-
conservation improvements;
-WORKING PARENTS, by
simplifying and liberaizing tax
benefits to offset the costs of
child-care expenses. A less gen-
erous provision is in the House
bill.

Reagan defends ticket

--HOUSEWIVES, by launch-
ing a program that eventually
could lead to federally subsi-
dized pensions for spouses who
do not work outside the home.
As far-reaching as those pro-
visions are, the long=g Senate bat-
tle was fought not over such
benefits but over tax breaks for
investors and businesses.
Sen. Russell Long (D-La.) and
a majority of his tax-writing
Finance Committee wrote into
the bill a series of tax breaks
designed to attract investment
in American business.
SEN. EDWARD Kennedy (D-
Mass.), leading the opposition,
criticized many of those incen-
tives as an unwarranted drain
of tax dollars.
In virtually every case, Lotng
One of the rare exceptions
came yesterday when the Sen-
ate voted 43 to 39 against a
Long proposal that would have
provided an additional $870 mil-
lion a year worth of tax relief
for investors, with two-thirds of
it going to the wealthy-persons
with incomes above $50,000.
THE ARGUMENTS on that
provision summed up the long
weeks of debate on the bill:
Industry is crying out for cap-
ital, Long said. "These invest-
ment needs can be met only by
increased private savings," he
added.
"This, in turn, requires more
favorable tax treatment of the
income from capital"

THE PROPOSAL, r e p I i e d
Kennedy, "is simply another
effort to provide an increased
tax preference for the wealthy,
at the expense of the millions
ot low- and middle-income in-
dividuals who already bear too
heavy a burden with the tax
laws."
A miajoir side issue durinig the
debate was the fight by Sen.
Edmund M u s k i e (D-Maine),
chairman of the Budget Com-
mittee, to protect the new con-
gressional budget - making pro-
cess.
Time and time again, Muskie
warned that by voting new tax
breaks to become effective in
future years, the Senate was al-
most guaranteeing that Con-
grems wouild be unable to bal-
ance the budget.
MUSKIE LOST every fight.
By preliminary estimates, the
bill would raise $3.6 billion a
year by 1981 by shutting off or
reducing a variety of tax bene-
fits, mainly for investors and
businesses.
However, by creating new
tax benefits, such as the chedit
for college tuition, the bill would
virtually wipe out the entire
revenue gain by 1977.
And, by 1981, the net effect
would be a $3.7-billion-a-year
loss. These figures do not in-
clude the $24-billion worth of
across-the-board tax-cut exten-
sions for businesses and indi-
viduals.

PHILADELPHIA f(A>) Ronald Reagan and Richard Schweiker
defended their conservative-liberal team yesterday while courting
uncommitted delegates in Schweiker's home state.
"Neither one of us has compromised our principles in any
way," Reagan said at a joint news conference.with the Penn-
sylvania senator he picked last week as his proposed vice presi-
dential running mate.
"I HAVE NOT retreated one iota from the positions upon
which I campaigned. The senator has not found it necessary, in
doing what he is doing, to compromise principles," the former
California governor, who is challenging President Ford for the
GOP bid, said.
"What we really are doing for the first time in the history of
See REAGAN, Page S

'What we really are
doing . . is trying to
bring segments of this
rarty together to win
an election . . .'-Ron-
aId Reagan, defending
his choice of Richard
Schweiker for running
mate