The Michigan Daily - Monday, October 5, 1992- Page 7 Congress awaits Bush's decision on tax bill WASHINGTON - (AP) - Congressional negotiators waited yesterday for a signal from President Bush on whether he would accept a compromise tax bill with expanded Individual Retirement accounts, new urban aid programs and some rela- tively minor tax increases. Although the $27 billion bill in- cludes several provisions that he fa- vors, there were indications Bush would use the tax increases as a reason to veto the measure. The campaigning president has renewed his promise not to raise taxes and daily criticizes Democratic nominee Bill Clinton's record of agreeing to comparable packages. Two of Bush's senior advisers sidestepped opportunities to endorse the bill. White House Budget Director Richard G. Darman referred to the bill as another Democratic effort to raise taxes. He declined on NBC- TV's "Meet the Press" to say whether the legislation will become law. Reminded that the bill contains more than two dozen tax increases, Darman said, "It isn't a tax increase bill if he's going to sign it. ... The President will not raise taxes. ... Period." Housing Secretary Jack Kemp said on ABC-TV's "This Week With David Brinkley" that the bill's ur- ban-aid program, designed to re- spond to the Los Angeles riots, "isn't going to get the job done.... It's too little, too late." Negotiators, led by Sen. Lloyd Bentsen (D-Texas) and Rep. Dan Rostenkowski (D-Ill.) agreed on major outlines of the bill Saturday night and worked out final details yesterday. They dropped two Senate-passed tax increases on the well-to-do in an effort to meet Republicans' most obvious objection. That still left numerous targeted tax increases in the bill, including a few that Bush himself had proposed last winter. Among the tax increases recommended by Bush were those accelerating the estimated tax pay- ments from corporations and higher- income individuals and requiring se- curities dealers to pay tax on the market value of their inventories. Congress added many of its own tax increases. They include delaying a scheduled drop in top estate-tax rates; eliminating a tax saving for those who take lump-sum pension payoffs, and raising withholding from some gambling winnings. The tax increases would pay fob dozens of special tax reductions and improvements in social programs. They include: designating 50 "enterprise zones" and rewarding in- vestors and businesses that create jobs there; liberalizing tax-de- ductible IRAs, and renewing a dozen business and individual tax breaks that expired on June 30. The bill also would repeal the luxury tax on expensive yachts, planes, furs and jewels. As Bush proposed, it would relax tax rules for investors in real estate and simplify the corporate alternative minimum tax. Negotiators dropped a proposal to give tax credit to first-time home buyers. Evidence says Bush knew of AP PHOTO Gov. Bill Clinton is leading the presidential race in Michigan, according to a new poll, with 46 percent of the public's support. POLL Continued from page 1 on Bush's handling of the economy. Asked which of the candidates would be best able help the econ- omy create jobs, 49 percent said Clinton, while 22 percent said Bush and 15 percent Perot. The character issue apparently didn't carry much weight with Michigan voters. In related news, officials at Michigan State University and in the capital area are glad to be back on the list of presidential debate sites. The university, originally scheduled to host the first debate Sept. 22, will host the third and fi- nal debate Oct. 19 at the Wharton Center. .5'.' Congress is awaiting President Bush's decision on a new tax bill that could increase taxes. The president is expected to veto the measure. Bush has $20 million more than Clinton, plans media blil R arms deal. WASHINGTON (AP) - George Bush said he didn't know American hostages were being bought with U.S. arms. He also said he didn't know the United States was dealing with Iranian radicals rather than moderates. Disclosures in recent weeks have challenged these assertions that Bush believed he had put behind him in the 1988 campaign. But doubts about Bush's recur- ring portrayal of himself as unin- volved never went away. They were shelved, to be dusted off in recent weeks with information suggesting, Bush knew more than he has admitted. Two sources have disclosed the [ existence of two top-secret Israeli tZ reports describing in detail a briefing. given to Bush in Israel when he was vice president. The contents are said gns. to spell out in detail the genesis of nd by no the arms-for-hostages deals with Iran ersonally and its various stages. Early on, 100 mil- The briefer, Israeli government use bid. official Amiram Nir, made clear to the race Bush that the United States aid: ting with Israel were dealing with radical; ur blocks forces in Iran because they were the weeks. only ones who could deliver the udgeted, hostages, according to a copy of president Nir's account obtained by ABC's h money "Nightline" program. 1 end up ere Perot Nir's briefing was one of nearly a id Herb dozen Bush was given between July Southern 1985 and November 1986 on the expert. Iran-Contra scheme. WASHINGTON (AP) - President Bush has as much as $20 million more than Bill Clinton to spend in the campaign's final month and plans to use his carefully 0 hoarded funds to bankroll an un- precedented month-long media blitz. Clinton's campaign insists it still has plenty of reserve cash for a final volley of its own - and so does Ross Perot, who is unbound by any legal limits on campaign spending. An Associated Press review of campaign spending shows that Bush began October with about $49 million left of the $65.5 million the Republicans are allowed to spend on the fall election. Clinton, meanwhile, had between $27 million and $32 million left. The difference is explained by three factors: Clinton by law had to begin spending his legally limited fall campaign money a month earlier than Bush, since the Democrat re- ceived his party's nomination in mid-July and the GOP convention wasn't until mid-August. Clinton's strategy called for spending more money early on to build a high profile - one that helped him grab the lead he now holds. Bush's strategy called for hus- banding campaign resources for a $30 million advertising blitz in the final month. The Clinton campaign says it's spending is right on schedule. Aides said the Democrat prepaid some of October's media expenses and also will benefit from an unprecedented Democratic Party get-out-the-vote drive and millions of dollars in generic vote-Democrat ads. "I don't think they'll be running out of money over there. We'll just have a little more to spend down the stretch," said Charles Black, a senior adviser to Bush's campaign. Spreading a legally limited bankroll over the fall election cam- paign is an inexact science that his- torically has caused campaign strategists to pull at their hair, espe- cially in the crucial final days. "When you start there's always a debate and infighting over how much you spend early on and how much you save until the last week- end. And in the end, you always wish you had more," said Leslie Dach, a senior aide to Democrat Michael Dukakis' failed 1988 bid for the White House. Bush and Clinton are bound by a $65.5 million spending limit - $55.2 million in government money and $10.3 million from their respec- tive parties. Each agreed to the limit when they accepted full taxpayer fi- nancing of their fall campaig Perot's spending is boun legal limits because he is pe bankrolling his campaign. F he talked about spending $ lion or more on a White Hou Perot, who re-enteredI last week, has been negotia the networks to buy half-hou of television time in coming "No matter how they b the question of whether the] or Bill Clinton saved enoug for the end may very wel depending on how and wh spends his money," sai Alexander, a University of; California campaign finance r CUTS Continued from page 1 they have felt the growth of homeless- ness more and more each day. Che'row Johnson, COTS Shelter director, said the average length of stay has gone from seven days to 35 days, "and some have been here for much longer," Johnson said. "The public's perception of a shel- ter being a warm bed, a cup of soup and a sweater is way off," she said. "Here at COTS we have a licensed daycare, case management, adult liter- acy programs, an IBM-funded com- puter literacy program, mental health services and a medical team that comes by." Yet even with all that shelters pro- vide, the government mandates that they do more. With the de-institutionalization of Michigan's mental hospitals and cen- ters, hundreds of mentally-disabled cit- izens have been put out on the street. They often end up at places like COTS. "We are now dealing with all sorts of special need cases, from mentally disturbed adults to twelve-year-olds who have never been immunized," said Johnson. And with these special needs come special workers and special programs, all which require special funds - funds that programs like COTS are lacking. Although Michigan has put in place what Truscott calls "one of the most comprehensive welfare programs in the nation," it does not apply to those who once qualified for GA. The new pro- gram deals solely with Aid to Families with Dependent Children - AFDC - cases. Before GA's elimination, the Michigan Opportunity and Skills Training (MOST) program, put people into the job referral stream and on line for job spaces. Now these people have fallen off track. They no longer have GA to keep them on their toes, and there is little sign of internal motivation. Scarcity of jobs, lack of training and transportation are three major ob- stacles for people trying to find employment. Sharon Parks of the Michigan League of Human Services said former GA recipients who have a drivers' li- cense and access to a car are three times more likely to have jobs. "There are already 450,000 people looking for employment in this state, and a lot of them have recent work ex- perience, what chance does one of the 82,000 former GA clients have against them?" she said. The familiar cry of "get a job at McDonald's" has its faults as well, Parks said, adding that working at a fast food restaurant seldom pays more than minimum wage, and rarely pro- vides any sort of benefits. For an adult trying to rent an apartment, buy food- and clothing, and pay for utilities, the paycheck - ranging between $78.36 and $162.49 weekly - hardly covers costs. Even if all former GA recipients were all able to locate jobs, there is no guarantee that they would be able to keep them. Many have problems beyond sim- ply being unemployed. Several have substance abuse problems that have not been addressed. Others are men- tally disabled or emotionally disturbed. 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