Page 2-- The Michigan Daily - Wednesday, September 12, 1984 U.S. business sets 18 year record WASHINGTON (AP) - U.S. businesses are plan- ning to spend a record $307.6 billion on modernization and expansion in 1984, the government reported yesterday. The increase, after adjusting for in- flation, would mark the biggest surge in capital spen- ding in 18 years. The Reagan administration, which credits its business tax cuts for much of the strength, hailed the news. Economists agreed it showed the country was in a remarkable capital spending boom. THE COMMERCE Department found in a survey, taken'in July and August, that businesses plan to spend 14.3 percent more on building and expanding plants and buying new equipment than they did in 1983. With inflation, the increase translates to 13.3 percent for 1984. If the plan becomes reality, then growth would be the strongest since a 15.2 percent surge, after ad- justing for inflation, in 1966. The new survey was down slightly from one in April and May that found businesses expecting to increase capital spending by 14.8 percent in 1984. A January-February survey had put the increase at 12.6 percent. Most economists discounted the slight drop from the April-May survey, saying that 13.3 percent growth would still be remarkable. Capital spending declined 3.6 percent in 1983 after an even steeper 6.3 percent drop in 1982, when the country was in recession. "DESPITE THE downward revision, all in- dications suggest that business plant and equipment spending will remain the main force behind the ex- pansion for the next six months to a year," said Allen Sinai, chief economist for Shearson Lehman- American Express. Commerce Secretary Malcolm Baldrige said the surge in invesment was adding to capacity at the nation's factories and playing a big part in improved productivity, which has registered its longest string of increases in a decade. "Decisions to expand and modernize are being spurred by strong sales, the Reagan administration's investment incentives and continuing confidence in the economy's ability to grow," Baldrige said in a statement. Shrewd investment e Washington (AP) - If you make the right investments, you can earn more than $100,000, pay no tax and get a $500 cash payment from the federal gover- nment. And it's perfectly legal. Norris Farnell, a Texarkana, Texas, accountant, cited that actual case from his files yesterday as an example of what's wrong with the system. He testified as the Senate Finance Com- mittee resumed hearings on making federal taxes fairer and simpler. THE BEST WAY, Farnell contended, is a national sales tax. But two other authorities disagreed that the income tax is so riddled with complexities that it must be scrapped. "A fair tax would not be simple. A Don 't Be The One To Show Your Spots!r If you were born during 1957 or later, you may be at risk for contracting measles* To Be Sure You're Protected, Complete the Checklist Below Q Were you vaccinated for measles during 1968 or later? Q Did you receive a measles vaccine on or after your first birthday? Q Did you receive a rubella (German Measles) vaccine after July, 1969? [ Did you receive a rubella vaccine on or after your first birthday? If you answered yes to all the questions, you are protected against measles and rubella. If you don't know the answers to any or all of the questions, call your parents or family physician to get accurate information. If you have answered no to any of the questions or cannot obtain accurate information, you should be immunized against measles and rubella. To receive a free vaccine, come to the UNIVERSITY HEALTH SERVICE FESTIFALL IMMUNIZATION CLINIC-September 14- The Diag-11 am-4 pm. It doesn't hurt to be reimmunized! *PeOple born before 1957 are assumed to have natural immunity to measles. Sponsored by the University Health Service and the Washtenaw County Health Department arns tax-free simple tax would not be fair," said Ber- everybo nard Shapiro, who formerly was paying a Congress' chief expert on taxes as staff Reagan director of the Joint Committee on the entir Taxation. He is now national director changes of tax policy for Price Waterhouse, the Preside accounting firm. Departn There is so much room for im- recomm provement, agreed David Berenson, a AMOK partner in the Ernst & Whinney accoun- -Junk ting firm. But he noted that nearly 40 with a fe percent of taxpayers file short tax for- eRepe ms, while millions more file the long ptions a form only to itemize relatively simple rate, re deductions, such as the mortgage in- knowna terest. would b "WE FEEL that much can be done rich ar with the current income tax system to everybo restore it to a position of being the * Modi paradigm model for a fair, well- repealin accepted method of raising federal keeping revenues," Berenson said. tgage i With $100 billion a year in taxes lost to number cheaters and the "underground most-pu economy," and with a record deficit sored b3 between federal avenues and expen- and Rej ditures, many public officials are con- would t cluding that the income tax must be rate; th reformed from top to bottom. would b Because of those doubts - and . *Tax widespread public perception that is earn dollars dy else is getting away without a fair share - Congress and the administration are studying e system with an eye to making next year. Under orders from nt Reagan, the Treasury ment is due to report Dec. 1 its nendations for change. NG THE alternatives: the income tax and replace it ederal sales tax. al most deductions and exem- and tax everybody at the same egardless of income. ,This is as a flat tax. While simple, it ring a massive tax cut for the nd a big tax increase for dy else. fy the present system by- ng most deductions - but such popular writeoffs as mor- nterest - and reducing the of separate tax brackets. The blicized plan of this type, spon- y Sen. Bill Bradley, (D-N.J.), p. Richard Gephardt, (D-Mo.), ax most people at a 14 percent he highest rate for the wealthy e 30 percent. what is spent rather than what ed, exempting anything saved. IN BRIEF Compiled from Associated Press and United Press international reports Reagan offers Soviets grain WASHINGTON - President Reagan further opened the door of the bulging American granary yesterday so the Soviet Union - confronting another poor harvest - can continue an unusual grain-buying spree. Reagan told the Soviets they could buy 22 million tons of U.S. wheat and corn for the year beginning Oct. 1, an addition of 10 million to 12 million tons in annual purchases permitted under an agreement negotiated a year ago. "I've said many times our philosophy is against the unfair, wrongheaded policies of grain embargoes, and we're going to do everything we can to strengthen markets for America's farmers," Reagan told reporters called to a special session in the White House Cabinet Room. "They're the most productive people, I think, on the face of the earth." Sen. Roger Jepsen, (R-Iowa), one of the farm state leaders present for the announcement, said later that the Soviets had not sought the increase, but Reagan offered it unilaterally. Such sales are made through the expor- ters. The proposal, made in a message delivered to Moscow Monday, was unusual - offers to sell more than the maximum sales specified by the agreement generally are made during twice-yearly consultations. Union sues EPA over asbestos WASHINGTON-Calling asbestos a "killer that is stalking our schools," a labor union brought suit yesterday to force the Environmental Protection Agency to spell out how to correct the hazard. Citing an agency survey showing that 15 million pupils in 31,00 schools face the risk of breathing asbestos fibers, the Service Employees International Union asked a federal court to order the EPA to act within 30 days. John Sweeney, president of the 850,000-member union, said the suit was filed only after his organization made last-minute attempts to get the EPA to propose a regulation or standards governing asbestos removal and specifying proper abatement procedures for school districts. EPA spokesman Dave Ryan said "we have not seen the complaint" and that the agency would have no immediate comment. Asbestos contains fine fibers, which if inhaled by humans can cause a variety of serious lung disorders, including cancer. The material was widely used as insulation in buildings from mid-1940s to the mid-1970s. UAW hints at contract rejection DETROIT-United Auto Workers President Owen Bieber yesterday said a General Motors Corp. offer on job security is a "framework" for a final plan, but warned union members would reject the proposal in its current form. The world's largest carmaker said its proposal-which set off exhaustive rounds of closed-door caucuses and joint meetings after it was delivered-would change the way it does business and protect "a significant portion" of UAW jobs. A current concessions contract covering 350,000 workers at the nation's largest automaker expires Friday. Bieber, at a news conference, said the document "does have the potential" of becoming part of the final contract, but still contains a number of loopholes. "It just is going to take a great deal of effort and work before it's in a saleable form. I wouldn't take this one for ratification by union members." A number of bargainers from both sides have said the union and the com- pany are determined to reach a settlement before the strike deadline. Bieber said negotiations would move into around-the-clock sessions "at the first op- portunity." Pope angers Canadian feminists MONTREAL-Pope John Paul II, parish priest for a day to this bustling northern metropolis, beckoned Canadians yesterday to leave the "spiritual; desert" of the modern world and rediscover God. "Nothing can fill the emptiness of his absence," the pontiff, wagging a finger in the air, preached to more than 300,000 people spread out over cen- tral Jarry Park. It was the biggest crowd ever assembled in this French- Canadian city. The pope, whose visit has stirred protests among feminists here, also took note of the expanding role of women in the liberal Canadian church. But he said nothing to alter his staunch defense of traditional church positions against women priests, divorce, artificial contraception and abor- tion. Security officials had been especially concerned about the pope's stay in Montreal, where a bombing last week that may have been connected to the visit killed three people. No serious incidents were reported yesterday. Iraquis shatter lull in Gulf war s- 4 ABU DHABI, United Arab Emirates- An Iraqi warplane fired a missile into a Liberian-registered supertanker loaded with crude oil from Iran's Kharg Island terminal yesterday, shattering a 15-day lull in the Persian Gulf "tanker war." Iraq said its warplanes attacked two "naval targets" less than 24 hours af- ter claiming to have hit a "large naval target" near Kharg Island to prove its ability to block Iranian trade in the gulf. But shippers and Lloyds of London were only able to confirm that the 254,520-ton Liberian-registered Saint Tobias was hit by an Iraqi missile Tuesday after loading its holds at the Kharg Island terminal. The missile struck a starboard ballast tank but caused only minor damage and no injuries, shippers said. Shippers said the supertanker was carrying 1.7 million barrels of crude destined for Japan and, according to one shipper, "a major pollution disaster was averted. 1 4 A MICHIGAN STUDENT ASSEMBLY The MSA will be interviewing for positions for its BUDGET PRIORITIES COMMITTEE Budget Priorities Committee reviews, allocates and facilitates the funding of group events and projects. The Committee meets on a regular basis monthly and on an as needed basis. GET INVOLVED IN STUDENT GOVERNMENT Applications available at 3909 Michigan Union DEADLINE FOR SUBMITTING APPLICATION: MONDAY, SEPT. 17, 1984 - 5:00 P.M. for further information, contact Laurie Clement or Marc Wernick, 3909 Michigan Union-763-3241 4 I 4 I GZhj 3idhigan ai g Vol. XVC - No.6 Member of the Associated Press The Michigan Daily (ISSN 0745-967X) is published Tuesday through Sun- day during the fall and winter terms and Tuesday through Saturday during the spring and summer terms by students at the University of Michigan. Subscription rates: September through April-$16.50 in Ann Arbor, $29.00 outside the city; May through August-$4.50 in Ann Arbor, $6.00 outside the city. Second-class postage paid at Ann Arbor, Michigan. Postmaster: Send ad- dress changes to The Michigan Daily, 420 Maynard Street, Ann Arbor, Michigan 48109. 4 Get down to business faster. With the BA,-35. Editor in Chief ...................... BILL SPINDLE Managing Editors ................ CHERYL BAACKE NEIL CHASE Personnel Editor ....................... SUE BARTO Associate Editors................LAURIE DELATER GEORGEA KOVANIS THOMAS MILLER Opinion Page Editors................JAMES BOYD JACKIE YOUNG Magazine Editor.................JOSEPH KRAUS Associate Magazine Editor.......... BEN YOMTOOS Arts Editors...................FANNIE WEINSTEIN PETE WILLIAMS Associate Arts Editors...............BYRON BULL ANDY WEINE ARTS STAFF: Joshua Bilmes, Jeff Frooman, Dennis Harvey,DaveKopel, John Logie, Emily Montgomery. Elizabeth Plum. PHOTO STAFF: Carol Francavilla, David Frankel, Dan Habib, Jeff Schrier. SPORTS STAFF: Sue Brosner, Joe Ewing, Chris Ger- basi, Tom Keaney, Ted Lerner, Tim Makinen, Adam Martin. Scott McKinley, Barb McQuade, Brad Morgan, Phil Nussel, Sandy Pincus, Mike Redstone, Scott Solowich. Randy Schwartz, Susan Warner. Rich Weides, Andres Wolf. Business Manager...............STEVEN BLOOM Advertising Manager ... MICHAEL MANASTER (HRH) Display Manager .................... LIZ CARSON Nationals Manager............. . .....JOE ORTIZ Sales Manager...............DEBBIE DIOGUARDI Finance Manager ................. LINDA KAFTON 14 If there's one thing business students have always needed, this is it: an affordable, busi- ness-oriented calculator. The Texas Instruments calculations, amortizations and balloon payments. The BA-35 means you spend less time calculating, and more time learning. One A powerful combination. Think business. With the BA-35 Student Business Analyst. I tJ