Page 2-The Michigan Daily- Wednesday, November 20, 1991
IRS: Despite tougher laws,
some rich still pay no taxes
WASHINGTON (AP) - Being
rich and avoiding federal income tax
is not as easy as it used to be.
But 397 couples and individuals,
with incomes of $200,000 or more,
found a way.
That's how many high-income
earners showed no tax liability on
returns filed in 1989, the Internal
Revenue Service said in a report yes-
The average income for this
All told, 32,198 couples and in-
dividuals with annual incomes of
$200,000 or more paid less than 15
percent of their earnings in federal
taxes. On the other hand, more than
80 percent of the 737,659 high-in-
come filers paid 20 percent to 30
The IRS found 2,377 returns re-
ported incomes of $100,000 to
$200,000 but paying no tax.
The 397 of the richest Americans
who paid no tax on returns filed in
1989 compares with 472 in 1988 and
595 in 1987. The IRS has been re-
porting on high-income non-taxpay-
ers since 1977, when there were 53.
The peak year was in 1986, when 613
In general, the number of filers
able to avoid federal tax has de-
clined while the number of
$200,000-plus earners has increased
steadily. On returns filed in 1987,
529,460 reported income of1
$200,000 or more; within two years
the number had increased by 40 per-1
That is no accident. Laws enacted
in 1981 and 1986 slashed tax rates
dramatically on top earners while
reducing their ability to shelter in-
All told, 32,198 with
incomes of $200,000
or more paid less than
15 percent of their
income in federal
come from taxation.
But the new report shows that
some shelter opportunities still
survive. The biggest: tax-exempt in-
terest, most of it from city and state
bonds. The IRS said 184 of the high-
income non-taxpayers reported tax-
free interest of $98.6 million on re-
turns filed in 1989. That was an av-
erage of $536,000 apiece.
So how did 397 couples and indi-
viduals earn $200,000 or more but
pay no tax?
Farming losses: 34 reported
losses totaling $16 million - an
average of $470,000. In general, such
losses can shield other income from
Partnership losses: 177 re-
ported $106rmillion of net losses,
an average of $598,000, from in-
vestments in partnerships and
closely held corporations.
Home mortgage interest: 182
deducted interest totaling almost
$17 million, an average of more than
Other interest: 189 deducted
interest exceeding $23 million, av-
Charitable contributions: 226
reported contributions of $28 mil-
lion, an average of $125,000.
. Tax credits: 105 claimed cred-
its totaling $24 million, a dollar-
for-dollar tax reduction averaging
$228,000. Most credits were busi-
Job-related moving expenses:
4 claimed expenses totaling
37 claimed deductions of $7.3 mil-
lion, averaging $197,000.
Casualty losses: 22 claimed
$17 million worth of losses from
theft, fire and other casualties - an
average of $776,000 per return.
Continued from page 1
and Senate, they had relied on Bush's
veto and his perfect record of sus-
taining those vetoes.
"You are being pressured by the
pro-abortionists today to do some-
thing you believe to be ethically
wrong. You are being pressured to
facilitate abortion by overriding
this vote," Rep. Chris Smith (R-
"Make no mistake about it: the
failure to override will not be for-
gotten by the women of this coun-
try," said Rep. Olympia Snowe (R-
Maine). "No male patient is
affected by this gag rule. You are
creating a situation for women
House Republican Leader Bob
Continued from page 1
ers to the polls.
RC sophomore KarnKoto said
she voted because she supported one
particular candidate. "It's just mo-
mentum of who you know more
than any real desire or want to
change anything," she said. "It's
School of Natural Resources
sophomore Dan Riseman voted be-
cause he thought someone in his
fraternity house was vying for an
LSA-SG seat. He was disappointed
when he discovered that his
housemate was not running, but he
decided to vote anyway.
Riseman said he thought the
publicity for this campaign was
less than usual. "Honestly, I
haven't heard too much about it,"
he said. "It's pretty silent. Last
year I think it was better."
Benezra argued that this year's
campaign was "very petty." She
said the candidates did not tackle
the two important issues that were
up for referenda - automatic stu-
dent group recognition and the
Environmental Issues Com-
Poll s~~~<.;......Iiioi..r .
E ECS .........................9:00 am to 2:25 pm .:...
.:WLiraryx:45 pm to 910 p
Union 9:00 am to 8:55 pm
M LB 9:30 am to 12:40 pm::,.
UGLi 2:00 pm to 8:55 pm
usi~ess Lo.ung 0e11 :15amt2:10pm
West Quad 11:30 am to 1:10pm
Burs ley.............4:45 pm..to 6:25 pm...
Grad. Library 7:00 pm to 9:25 pm
But LSA sophomore Debbie
Shamoon said she was voting be-
cause she was unsatisfied with the
Vernon added that many voters
were upset that there were 15
Conservative Coalition candidates
and only one independent running
"Many voters were very disap-
pointed that there were no progres-
sives on the ballot," Vernon said.
"One person wanted to know if the
Abolitionists were running."
Continued from page 1
activity and had responded.
"University security was involved
only in an assistance position,"
Heatley said, explaining campus
security took the equipment from
the students because the media cen-
ter was locked.
Heatley added that security of-
ficers "simply would not have
time in their daily schedules" to
trail an orientation group. He said
the final incident, regarding ques-
tioning of Black women at random,
was still an open investigation.
Following the presentation,
MSA elected Rackham Rep. Max
Ochoa Vice Chair of the Rules and
Elections Committee, by a 13-10
vote with three abstentions.
The assembly voted to amend
the MSA Compiled Code to pro-
vide a presidential and vice-presi-
dential oath of office. The motion
passed 11-9 with four abstentions.
Michel (R-Ill.) tried to move the
debate off the abortion issue in urg-
ing that Bush's veto be sustained for
other reasons. He noted that Bush
also raised objections in his veto
message to a budget provision that
delays $4 billion in spending until
the next fiscal year.
"This vote is not about
education, ... cancer research or job
training," said Rep. Vin Weber (R-
Minn.), a leader of anti-abortion
forces. "This bill is not about
gagging anybody ... What this bill is
about is abortion."
About 4.5 million women get
abortion counseling at such centers
every year. Since 1981, the federal
government has financed abortions
only when a woman's life is in dan-
ger and she needs the procedure to
PASADENA TICKET AGENCY
Continued from page 1
woman who was assaulted at the
back entrance of East Quad last
Saturday morning said the security
officer who took her report com-
mented that the description of her
assailant matched that of a woman
who had been assaulted earlier that
evening, she thought near
Baisden said yesterday he had
been unable to contact the officer
who took the report, but said he
would continue to investigate.
Although Baisden added he still
could not explain why report of the
East Quad incident had not appeared
in summary reports last week, he
said that housing security had fol-
lowed proper procedure and notified
administration at East Quad.
However, East Quad House
Director Deba Patnaik said Monday
he had not received any report of the
incident from security, and knew of
the assault only because the sur-
vivor had informed her residence
Investigation is continuing in the
East Quad assault, Baisden said.
Continued from page 1
LSA sophomore Aileen Supefia
described the crowd of about 50
evacuated residents as "confused and
"We were already riled up about
the rapist and then we had this bomb
threat. Basically I was scared be-
cause I didn't know what to expect.
Was it a rumor? Was it truth? Why
were we the only ones out there?"
Supera said, referring to uncon-
firmed accounts of a sexual assault
outside Stockwell last week.
The security guard in charge told
residents the building had been
checked thoroughly by three DPSS
officers. Judging from the nature of
the call, he said, the warning was
not issued by University security.
"If it turns into something serious,
we'll notify the building directors
later," said the guard at the time. He
refused to give his name.
Joel Allan, Associate Director
of DPSS in charge of Housing Secu-
rity, pointed to the caller's instruc-
tions to pull the fire alarm and,
evacuate the building as the first
Continued from page 1
"Because of the shooting at
Royal Oak we lost a lot of nurses
who had to go work there. We got
really short that day and its been
hurting us ever since," said Tina
Saad, an LSA sophomore and APO
member volunteering at the blood
Two transplants are planned at
the University hospital this week
and 60 or 70 donors are needed per
transplant. "We can do three or four
liver transplants this week if we get
a whole bunch of blood," Fry said.
Fry said student turnout in the
residence halls has been good. The
best one-day donor turnout was at
Bursley last Monday with 182
donors. Mosher Jordan hosted 161
sign of a prank.
"We do not evacuate as a normal
course. We contact staff and tell
them to notify residents that there's
a threat. We encourage them to
evacuate but they don't have to,"
Many Stockwell residents said
they were angry and frustrated be-
cause the evacuation was unorga-
nized and they did not know what to
"We don't know any emergency
procedures whatsoever," said one
resident who asked to remain
Stockwell Building Director
Julie Lavrack confirmed there have
not been any fire drills in Stockwell
this semester. Lavrack added that
bomb threats, because they are so
rare, are not covered in safety proce-
Residents were also concerned
that not everyone was told about
First-year LSA student Susan
Levin told a security guard that it
was ridiculous that some residents
didn't find out until later. "There's
got to be a way for the system to
work, and this isn't it," Levin said.
donors, South Quad had 156,
Markley had 142, the Business
School had 141 and East Quad had
Sorority turnout has also im-
proved this year, Saad said. "The
sororities have come out strong this;
year and shown great interest, but
fraternity interest has not been as
"The drive is great," Lin said.
"People are coming in. People care.
In terms of the contest itself, I hope
Michigan wins but at least we col
lected blood to.help save people's
lives. Winning is a desire but not a
The blood drive will be held to-
day and tomorrow in the Union
ballroom from 1 p.m. to 6:30 p.m.
and Friday from noon to 7:30 p.m.
pp- ,vx A'
and your host
for more information
call 763-1 107
and student comedians
Fr. Thomas Hopko, Ph. D.
Distinguished Teologian, Author and Lectrer will speak on
"THE THEOLOGY OF SEX'
Sponsored by the Council of Eastern Orthodox Churches ofMetopoltan De tro
University of Michigan
Union - Pendleton Room
530 S. State Street
Ann Arbor, Michigan
Thursday, November 21st
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(Priory Press, 1968);
The Orthodox Faith: .
(OR£. Orteodc. Churd in A nmai. 1972.76)
The Sjit Of God
(Morehouse Balowe, 1976);
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Women and the Priesthood
(SVS Press, 1983);
The Lenten Spring
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Tis' the Season...To Tell
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