LOCAL/STATE The Michigan Daily - Thursday, January 9, 2003 - 3A State may lose revenue under Bush plan Ice near Taubman Medical Library causes slip and fall A person walking near the Taub- man Medical Library on Catherine Street slipped and fell on ice Monday morning, according to Department of Public Safety reports. According to the DPS incident log, the person remained on the ground for 10 to 20 minutes. DSP is unsure of what injuries had been sustained by the victim. University worker forges aycheck to get $70 bonus DPS was alerted Monday that a former University student working for the University had changed the amount of his paycheck from $8 to $80. According to DPS reports, the check was then cashed for the incorrect amount. Air freshener, smoke from oven trigger Res Hall fire alarms DPS officers determined a fire alarm that sounded Monday at approximately 11:20 a.m. in Mosher Jordan Residence Hall was triggered by air freshener. No other problems were found. A separate fire alarm that sound- ed Monday from the Victor Vaughn House at 1111 Catherine St. was caused by something burning in the oven, staff members told police. There was no fire and nothing was damaged. Door damaged at Michigan League over weekend An unknown person reportedly maliciously damaged the exterior door to the Michigan League Underground sometime Saturday night, DPS reports state. It is unknown how or why the door was damaged. Computer equipment stolen from Art and Architecture Building A computer monitor, keyboard *axrd' mouse' were amonrg the items reported stolen. DPS officers also believe the per- petrator possibly forced entry into several of the victim's cabinets. In addition, a University-owned laptop computer in the Medical Sci- ence Unit II building on Catherine Street was reported stolen Monday morning. Police believe the computer was stolen over the weekend from a locked room. Despite warning, man illegally enters closed B-School An unknown man, described as being a white, 5-foot-6 male wear- ing a blue hooded sweatshirt, was seen trespassing in the Business Administration Building at 1 a.m. Monday morning. Prior to his entry, the suspect was told by another person that he could not enter the closed building, DPS reports state. Officers could not locate the man upon their arrival. Woman may have had stroke in South Quad Dinning Hall Persons in South Quad Residence Hall requested an ambulance Mon- day after believing a woman in Din- ing Room 2 was suffering from a stroke. The woman was reportedly con- scious and breathing at the time of the call, DPS reports state. The woman's current condition is unknown. Big House pillar damaged, car may be to blame A brick and cement pillar near Michigan Stadium was damaged sometime Saturday. DPS has no suspects but believes a vehicle caused the damage. Reported car break-in while owner in meeting~ LANSING (AP) - Michigan would lose at least $125 million a year in tax revenues if lawmakers approve President Bush's latest economic stimulus package, according to a report released yesterday by the Center on Budget and Policy Priorities. "One of the most astounding features of the plan . is that there is no fiscal relief for the states," said the report's author, budget analyst Iris Lav. Michigan Republican Party Chairman Rusty Hills defended Bush's plan, saying the center's analysis is flawed because it doesn't consider whether the plan will create more jobs. "It's going to help create jobs, and the more people that go to work, the more the state will earn in tax revenues," he said. "There's benefits for everybody across the board. This is the right tonic at the right time." The Washington-based Center on Budget and Policy Priorities is liberal-leaning but has a reputa- tion for evenhanded analysis. Bush's proposal, announced Tuesday, would accelerate tax cuts scheduled for 2004 and 2006 and eliminate the tax on corporate divi- dend payments. Lav said the dividend cut would be the costliest measure for states, reducing revenue by $4.5 billion per year to 43 states. According to Lav's analysis, Michigan would have the ninth-highest amount of revenue losses, behind California, New York, Ohio, Massachusetts, North Carolina, Virginia, Pennsylvania and Illinois. Michigan would be better off than some states because it wouldn't be affected by Bush's plan to increase the amount that small businesses can deduct for business invest-. ments. California and Michigan have their own business tax systems that don't work in tandem with the federal system. Lav said states would be better served by a Democratic proposal that would give $31 billion directly to state governments. States already are facing budget deficits of around $50 billion in 2003, she said. Further cuts could lead to more lay- offs, lower benefit payments and lower reimburse- ment rates for services. "The best thing the federal government can do right now is supply some aid and avoid putting costs on states," she said. Lav said one option discussed in a White House conference call with governors Tues- day night was that states could continue to tax dividends independently. But she said that option could be short-lived, because companies may want to stop producing the forms required for dividend taxes if the federal gov- ernment doesn't need them. Slide show Nissan makes move to Big Three's truck industry DETROIT (AP) - Nissan Motor Co. rolled into the full-size truck market Tuesday with its offering called the Titan, a hulking truck that the company's chief executive said will play an important role in the automaker's ongoing turnaround. "We've had some good vibrations coming from the Titan," said Nissan CEO Carlos Ghosn after the new truck made its debut at the North American Interna- tional Auto Show. "It's good to start like this. When you start like this, chances that it's going to be a com- mercial success are very high." Nissan will compete in a market long dominated by domestic pickups from Ford, Chevrolet, GMC and Dodge. The first foreign challenger, the Toyota Tundra, entered the mix a few years ago and has done well for the Japanese automaker. The Titan has a towing capacity of up to 9,400 pounds and features door handles, control knobs and a steering wheel designed for easy operation while wear- ing work gloves. The 2004 model has a 5.6-liter, V-8 engine with more than 300 horsepower. But it also has luxury touches, such as a driver's seat memory system, heated front seats and adjustable cuphold- ers. The rear doors can be opened 180 degrees rearward. The truck will be in showrooms late this year. Pricing has not been established. The Titan will be built at Nissan's new manufacturing facility in Canton, Miss., a $1.43 billion investment for a company that was on the brink of bankruptcy just a few years ago. UIhjd s §keadshipNmnhasaciedasblkigtuw undiubegn mn1999uidranaUlianeihPmAnkFxndcoanythmwn44.4pmt ofNism Before the arrival of Ghosn, who moved to Nissan from Renault, Nissan had lost money in the last seven years out of eight as it tried to keep up with Toyota Motor Corp., Japan's top automaker, in product lineup and market share. Nissan has returned to profitability through selling off money-losing businesses and cutting costs by sharing parts and research with Renault. In November, Nissan reported a 25 percent rise in profit for the first half of its fiscal year as sales rose 10 percent. The results marked a company record for the fifth straight fiscal half-year. Nissan is in the middle of a three-year revival plan that calls for selling one million more cars in three years, achieving industry-leading profit margins and eliminating debt. Ghosn said the company has accomplished its goal for profit margins and should be debt free in the next year. The company's automotive debts totaled $19 bil- lion four years ago. Ghosn said Nissan has plans to sell 250,000 passenger cars in China by 2006, but more importantly in the near term is the success of its products in the U.S., such as the Titan, 350Z, Altima and Infiniti G35. DAVID KATZ/Daily LSA senior Ethan Orley shows Ann Arbor resident Debra Westrum his slide film from Italy where he traveled over Winter break. Internet sales tax bill looms over state Legislature LANSING (AP) - There soon may be no way to avoid paying the sales tax on Internet and catalog purchases in Michigan as state lawmakers appear poised to consider a bill to collect those taxes. "The legislation'Woul'd bebsed on an agreement recently reached by a group of 33 states, including Michigan. It's intended to create more uniform tax laws so taxes on purchases made across state lines can be more easily collected. Michigan's budget woes are giving a boost to the bill, which would bring in an estimated $100 million to $300 mil- lion in sales and use tax revenue that now goes uncollected each year, according to the nonpartisan Senate Fiscal Agency. However, the national agreement calls for states to pay for some of the collection system, which would include computer software for retailers to report sales tax revenues and which state should collect it. The agreement would be volun- tary for retailers who do business in different states, said Ellen Marshall, spokeswoman for the Streamlined Sales Tax Project. Simplifying the tax code would make it more attractive for retailers to collect sales tax, state Treasury spokesman Terry Stanton said yesterday. Many online retailers say it's too difficult to figure out the patchwork of sales taxes across the nation and make sure the money is collected and sent to the states from which residents are making online and cat- alog purchases. Consumers are required to pay sales tax on purchases made online, over the telephone and by mail, but people don't always pay it and the state doesn't go after them. Ads link SUVs and terrorsm LOS ANGELES (AP) - A group hoping to lessen U.S. reliance on foreign oil yesterday debuted two television ads that link gas-guzzling sport utility vehicles to terrorist funding. The ads mimic spots that link drug money to terrorism. One commercial features a child's voiceoveraand shows a man filling his gas tank and footage of terrorist "It's not a new tax, it's a fairness issue that will help keep some people in business" - Rick Johnson (R-LeRoy) You surf the net, Now surf the world A Semester ALMOST Abroad at the UNIYRSI[ OF HWAilly Study abroad without leaving the country Stay for one semester or a year. Choose from an unparalleled array of Asian, Hawaiian, or Pacific courses in the arts, sciences, or business while living in a vibrant, island-based, multi-cultural community and campus. For complete information, connect to: www.hawaii.edu/almost or e-mail almost@hawaii.edu. On campus housing and meals available. In Michigan, the 6 percent sales tax accounts for 28 percent of the state's total tax revenue, Stanton said. The sales tax brought in about $6.5 billion last year, he said. Michigan's single sales tax rate puts it ahead of other states where officials have to figure out how to collect differ- ent local and state taxes to create a uni- form system, Stanton said. "The state is between 80 and 90 per- cent compliant with the agreement now," he said. "Some sales and tax statutes would have to be changed in legislation, but we wouldn't be starting from scratch." Under the national agreement, a business would charge the appropriate tax at the time of purchase and then electronically submit the tax informa- tion to the state, said Eric Rule of the Michigan Retailers Association. Proposed legislation may contain some tax credits for retailers to pur- chase the electronic equipment, he said. Supporters of the Streamlined Sales Tax Project, including Democratic Gov. Jennifer Granholm and Republican House Speaker Rick Johnson, say it would level the playing field between Michigan retailers and out-of-state merchants who sell through catalogs and the Internet. "The mom and pop stores have been calling me about it," said Johnson, of LeRoy. "It's not a new tax, it's a fair- ness issue that will help keep some people in business." Despite the support of Johnson and Granholm, the bill isn't likely to receive quick approval from the GOP-'con- trolled Legislature. Two years ago, the House narrowly approved a bill to allow Michigan to participate in the national group's efforts to develop a way to collect taxes. A number of Republicans think the bill will mean new taxes and stifle economic growth. Rep. Leon Drolet, a Republican from Macomb County's Clinton Township, said the bill may have a hard time in the current Legislature, which he considers more conservative than the one that left office Dec. 31. Although the state faces a deficit and could use the money, the slow economy is hurting taxpayers as well, he said. "We don't need the money, the peo- ple need the money to keep the econo- my going," Drolet said. The bill to participate in the national Streamlined Sales Tax Project expired on Dec. 31. Johnson said the House may consider a bill to extend the state's participation in the group. Michigan doesn't need to be in the group to be part of the most recent agreement on collecting sales taxes across state lines. But it may need to be a member to be part of any future agreements. The University o4 Hawaii is an equal opaiiunitylafirmative action institution. '' , '. Ann Arbor - The University of Michigan Board for Student Publications is recruitin to replace members whose terms expire in May 2003. The Board is looking at members of the University Community-faculty, staff & students-who have experience and expertise in finance, development or architecture. - ..T : Alcohol alone is the most commonly used date-rape drug. Sexual predators look for vulnerable people to assault. The Board is include The responsible for three publications which Michigan Daily, The Michiganensian I .