2A - The Michigan Daily - Thursday, September 21, 2006 413 E. Huron St., Ann Arbor, MI 48104-1327 www.michigandaily.com DONN M. FREsARDu ALEXIS FLOYD Editor in Chief Business Manager fresard@michigandaily.com business@michigandaily.com NATION/WORLD 1 CONTACT INFORMATION News Tips Corrections Letters to the Editor Photography Department Arts Section Editorial Page Sports Section Display Sales Classified Sales Online Sales Finance Newsroom: 763-2459 Office hours: Sun-Thurs. 11 a.m. - 2 a.m news@michigandaily.com corrections@michigandaily.com tothedaily@michigandaily.com photo@michigandaily.com 764-0563 artspage@michigandaily.com 763-0379 opinion@michigandaily.com 763-0379 sports@michigandaily.com 764-8565 display@michigandaily.com 764-0554 classified@michigandaily.com 764-0557 onlineads@michigandaily.com 615-0135 finance@michigandaily.com 763-3246 EDITORIAL STAFF Jeffrey Bloomer Managing Editor bloomer@,tiachigaadaily.com Karl Stampfl Managing News Editor stampfl@michigandaily.com NEWS EDITORS: Leah Grahoski, Christina Hildreth, AnneDoling, Anne VanderMey Emily Beam Editorial Page Editor beam@michigandaily.com Christopher Zbrozek Editorial Page Editor zbrozek@michigandaily.com ASSOCIATE EDITORIAL PAGE EDITORS: Whitney Diho, Theresa Kennelly, David Russell, Iran Syed Jack Herman Managing Sports Editor herman~dmichigandaily.com SENIOR P RT EDITNRS : ttBell,0H o Bce MattSinger, Kevin Wright, Sepni WeWright SPORTS NIGHT EDITORS: Dan Bromwich, Amber Colvin, Mark Giannotto, Dan Levy, Ian Robinson, Nate Sandals Evan McGarvey Managing Arts Editor mcgarvey@michigandaily.com Bernie Nguyen Managing Arts Editor nguyen@michigandaily.com ASSCjIATEN ARTS EITORS:Kibely hu, iAndre Sai ein AR1 0UB EDIO:Li.C k itin Cowati let, Kriine i~n Alex Dziadosz Managing Photo Editor dziadosz@michigandaily.com Mike Hulsebus Managing Photo Editor hulsebus@michigandaily.com ASSOCIATE PHOTO EDITORS: Forest Casey, Trevor Campbell, Peter Schotentels AaSISTANT PHOTO EDITORS: Shnbra Ohn, ENone Roberton The Rev. Ed Bacon is photographed at All Saints Church in Pasadena, Calif. yesterday. The liberal church is locked in an escalating dispute with the IRS over an anti-war sermon. IRS investigates church for sermon Probe, which may cost liberal church its tax-exempt status, could reverberate in political season PASADENA, Calif. (AP) - With the campaign season in full swing, a liberal church is locked in an escalating dispute with the IRS over an anti-war ser- mon - delivered two days before the 2004 presidential election - that could cost the congregation its tax- exempt status. Religious leaders on both the right and left are watching closely, afraid the confrontation at All Saints Church in this Los Angeles suburb will compromise their ability to speak out on issues of moral importance such as abortion and gay marriage during the midterm elections. Under federal tax law, church officials can legally discuss politics, but to retain tax-exempt status, they cannot endorse candidates or parties. Most who do so receive a warning. According to the IRS, the only church ever to be stripped of its tax-exempt status for partisan politicking was the Church at Pierce Creek near Binghamton, N.Y., which was penalized in 1995 after running full-page ads against President Clinton in USA Today and The Washington Times in 1992 during election season. Before this fall's congressional races, the IRS warned that it would be scrutinizing churches and charities - important platforms, particularly for Republicans - for unlawful political activity. All Saints is an Episcopalian church of about 3,500 _ the largest west of the Mississippi - and has long had a reputation for liberal social activism among its largely affluent, Democratic-leaning membership. Dur- ing World War II, its rector spoke out against the intern- ment of Japanese Americans. The Rev. George Regas, who headed the church for 28 years before retiring in 1995, was well known for opposing the Vietnam War, championing female clergy and supporting gays in the church. The dispute centers on a sermon titled "If Jesus Debated Senator Kerry and President Bush" that Regas delivered as a guest pastor. Though he did not endorse a candidate, he said Jesus would condemn the Iraq war and Bush's doctrine of pre-emptive war. NEWS IN BRIEF HOUSTON Space shuttle Atlantis free of damage NASA gave space shuttle Atlantis the all-clear to come home yesterday after a stem-to-stern inspection prompted by a mysterious flurry of orbital litter found no damage to the ship. NASA could not say for certain what the five floating pieces of junk were - perhaps a plastic filler strip, maybe a garbage bag. But shuttle program man- ager Wayne Hale said there was no reason to worry. "We are cleared for entry. Nothing was found to be missing or damaged on the thermal protection system, the heat shield of the space shuttle Atlantis or in fact any other part of the space shuttle Atlantis," Hale said after two inspec- tions lasting a total of 7 1/2 hours. "So we feel we're very confident that we're in good shape for a landing opportunity." UNITED NATIONS Venezuelan leader calls Bush 'the devil' Venezuelan President Hugo Chavez took his verbal battle with the United States to the floor of the U.N. General Assembly yesterday, calling President Bush "the devil" The impassioned speech by the leftist leader came a day after Bush and Iranian President Mahmoud Ahmadinejad sparred over Tehran's disputed nuclear program but managed to avoid a personal encounter. "The devil came here yesterday," Chavez said, referring to Bush's address on Tues- day and making the sign of the cross. "He came here talking as if he were the owner of the world." Standing at the podium, Chavez quipped that a day after Bush's appearance: "In this very spot it smells like sulfur still." Chavez held up a book by American leftist writer Noam Chomsky "Hegemony or Survival: America's Quest for Global Dominance" and recommended it to everyone in the General Assembly. BANGKOK, Thailand Thai coup leader says no election for a year Thailand's new military ruler, winning crucial royal backing for his bloodless coup. announced yesterday that he would not call elections for another year. The U.S. and other Western nations expressed disapproval and urged a swift resto- ration of democracy. Army commander Gen. Sondhi Boonyaratkalin, appearing relaxed and confident in his military uniform at his first news conference since seizing power Tuesday night. said he would serve as de facto prime minister for two weeks until the junta - which calls itself the Council of Administrative Reform - chooses a civilian to replace hire and drafts an interim constitution. WASHINGTON Fed strategy keeps interest rates steady The Federal Reserve gave America's borrowers a break and held interest rates steady for a second straight month, part of a strategy to put the economy on an even keel. In a 10-1 vote yesterday, Fed Chairman Ben Bernanke and his colleagues decided to leave rates alone, suggesting that slowing economic activity even- tually will lessen inflationary pressures. - Compiledfrom Daily wire reporis CORRECTiONS The table of contents on page 2B of yesterday's Statement said the National Insti- tutes of Health has had its funding cut for the first time in its history. It should have said it was the first cut in 30 years. A caption on page 8B of yesterday's Statement said that Ron Koenig's department was in danger of having its funding cut. The caption should have read, "Koenig, who is director of the Medical Scientist Training School, said that if the current funding crisis persists, it will take a serious toll on academic biomedical researchers." H A caption accompanying a photo on page 9B of yesterday's Statement misidentified the photographer. Daily photographer Ali Olsen took the photo. Please report any error in the Daily to corrections@michigandaily.com. A Bridget O'Donnell Assistant Managing Editor, Design Phil Dokas Managing Online Editor ASSOCIATEONLINE EDITORS:AngelaCesere James V. 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