The Michigan Daily - Friday, September 14, 1990 - Page 5

Proposal
offers tax
ebreak for
wealthy
WASHINGTON (AP) - A new
tax proposal by Republicans at the
budget summit would cost low-and
moderate-income Americans $4.1
billion next year while slashing
*axes by $11 billion for those better
off, according to documents obtained
yesterday by The Associated Press.
A Democratic offer would lower
by $4 billion the taxes paid by peo-
ple with incomes below $20,000,
while boosting them by $26.8 bil-
lion for everyone else, the papers
show.
In the Republican plan, the
iggest break, $7.4 billion, would
o to people with incomes of more
than $200,000.
The estimated distribution of
both tax proposals was calculated by
Congress' nonpartisan Joint Tax
Committee.
The GOP plan included cutting
the capital gains tax rate, limiting
the deducibility of state and local in-
came taxes, a tax on petroleum fuels
~nd higher alcohol taxes. It also
contained a proposal to increase ex-
cise taxes, extend the soon-to-expire
3 percent tax on telephone calls and
change in the child care tax credit.
The Democratic proposal included
a surtax on the income taxes paid by
people earning more than $200,000
annually, higher alcohol taxes and
taxes on energy and gasoline.
rIt also contemplates extending
the 1.45 percent payroll tax people
pay on their first $51,300 of wages
each year to all of their additional in-
come, if any. The tax, which is in-
cluded in the Social Security levy,
gdes to the costs of hospital care
provided by Medicare.

Grant apprvedto xpad
SDetroit Metropolitan Airport

WASHINGTON (AP) - The
Federal Aviation Administration ap-
proved a $185 million grant Thurs-
day for expanding Detroit Metropoli-
tan Airport.
The agency released a letter stat-
ing its intent to supply the grant, a
key component of funding for the $1
billion project, said Rep. Bob Carr,
(D-East Lansing).
Carr, a member of the House
subcommittee that handles trans-
portation spending, had requested the
money. He said it would pay for a
fourth parallel runway, a second

cross-wind runway, accompanying
taxiways, lighting, a tunnel for an
access road and other improvements.
"Getting the FAA's agreement
and ... endorsement through this let-
ter of intent is a major hurdle," Carr
said.
He acknowledged that some peo-
ple oppose the project, fearing it
would increase noise near the airport
in Romulus, about 25 miles west of
Detroit. But he said it would create
10,000 jobs and alleviate worsening
congestion at the airport.

Z
Saudi Showstoppers
American soldiers from the 82nd Airborne cheer their approval for entertainers performing a USO-style show
Wednesday in Saudi Arabia. The hour and a half performance was organized for the troops by amateur singers,
dancers and musicians from the U.S. and Britain who live and work in Saudi Arabia.
.iiht

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