Page 4-Tuesday, August 4, 1981--The Michigan Daily Senate formally OKs Reagan's tax cut bill, House nod expected In Brief Compiled from Associated Press and United Press International reports WASHINGTON (AP)-After rebuf- fing a last-gasp protest from Sen. Ed- ward Kennedy, the Senate passed 67 to 8 yesterday a compromise version of President Reagan's tax cut and sent it to the House for a final vote that would put the landmark measure on the chief executive's desk. The House was scheduled to vote today on the bill, the largest tax cut in history and the cornerstone for the president's economic recovery program. Reagan could sign it later in the day, or, more likely, tomorrow. THE COMPROMISE version of the bill, which will cut business and in- dividual taxes by $749 billion through 1986, was approved 67-8 after Kennedy (D-Mass.) tried and failed to delete some of its special breaks for the oil in- dustry. House approval, considered certain, will send Congress off on a five-week recess. The heart of the bill is a three-step permanent reduction in individual tax rates, with rich and poor alike getting virtually the same 25 percent cut. Star- ting in 1985, taxes would be cut automatically each year to help offset inflation of the previous year. THE PERSONAL tax cuts will be felt slightly in the first paychecks received after Oct. 1. Bigger reductions in the amounts withheld from paychecks will follow on July 1 and a year later. Also in the measure are extra relief for 17 million working couples who are taxed more than if they were single; liberalized incentives for retirement CONTACT LENSES Soft contact lenses $169 Daily extended wear lenses $235 Extended wear lenses $350 Hard contact lenses- 2 pair $150 Includes all professional fees Dr. Paul Uslan, Optometrist 545 Church Street 769-1222 by appointment JL Kennedy ... fails in final maneuver savings; new investment tax breaks benefitting mainly higher income Americans; greater tax benefits for child-care expenses; lower taxes for U.S. citizens working abroad; elimination of estate taxes for all but the wealthiest Americans and steep reductions in business taxes. REFLECTING Reagan's contention that investment by upper-income tax- payers is needed to spur the economy, 32 percent of the personal tax cut will go to those earning $50,000 a year or more. They pay 33.8 percent of the tax burden. Democrats say the bill shortchanges a majority of taxpayers-those with in- comes under $20,000-who are hurt most by rising Social Security taxes and inflation. But all that was overshadowed yesterday by another chapter in the long-running Senate battle over tax benefits for the oil industry. The bill earmarks an estimated $32 billion to $33 billion in special tax relief over the decade for oil producers and royalty- owners. Rebel troops attempt to oust Bolivian president LA PAZ, Bolivia - Rebel troops took control of the provincial capital of Santa Cruz yesterday in the fourth attempt since spring to oust President Luis Garcia Meza, according to rebel broadcasts. There was no report of bloodshed in the takeover of the country's second- largest city, about 350 miles southeast of here. The attempted coup was led by two exiled army officers demanding that Garcia Meza turn power over to Bolivia's three-man military junta. Garcia Meza, who seized power in a coup a year ago, was tending to his normal duties, a presidential spokesman said. The commanders of the ar- med forces, who make up the junta, were meeting, a source at Army Headquarters here said. There was no word on their discussions. Leading the attempt were former army chief of staff Lucio Anez Rivero and former President Alberto Natusch Busch, who ruled for 15 days after a military coup in November 1979. Hundreds of Panamanians mourn passing of Torrijos PANAMA CITY, Panama - Hundreds of mourners, some weeping, filed past the closed, flag-draped wooden casket of Gen. Omar Torrijos yesterday to pay homage to the man who won the battle for Panamanian ownership of the Panama Canal. The 52-year-old leader - killed with six others when his plane crashed into a jungle hillside Friday - had run this Central American country as commander-in-chief of the powerful national guard after a 1968coup. Early yesterday, his body was taken from Paitilla Medical Center carried through the city in a black hearse at the head of a procession, and was placed on a bier in the Metropolitan Cathedral. Sources in the national guard said the general's remains were burned so badly identification had been made from awatch and blood type. The funeral was scheduled for this morning, to be attended by foreign leaders and representatives, including a delegation from the United States. The national guard and government leaders chose Col. Florencio Flores, the guard's chief-of-staff, to succeed Torrijos. But foreign diplomats here were predicting a power struggle after the funeral. "The government was not ready for this and neither was the op- position," said Foreign Minister Jorge Illueca. "The country is not ready for this." Federal jury convicts 2 in bribery scheme NEW ORLEANS - Reputed Mafia boss Carlos Marcello and former Louisiana Commissioner of Administration Charles Roemer were convicted yesterday by a federal jury of conspiracy in a state insurance bribery scheme. The jury acquitted the other two defendants. The verdicts came after the jury had deliberated 15 hours at the end of a 19 week trial. The count on which Roemer and the 71-year-old Mrcello were convicted carries a maximum penalty of 20 years and a $25,000 fine. Roemer, 58, was once the state's chief administrator after the governor, I. Irving Davidson, 59, a Washington lobbyist, and New Orleans lawyer Vin- cent Marinello, 43, were acquitted. July marketbasket increase smaller than June rise Higher prices for butter, eggs and pork chops helped boost grocery bills last month, but the July increase was smaller than the June rise, an Associated Press marketbasket survey shows. Declining coffee prices helped offset some of the increases and there were scattered bargains on frankfurters for summer barbecues. The AP drew up a list of commonly purchased food and non-food items, selected at random, and checked prices on March 1, 1973 at one supermarket in each of 13 cities. Prices of the 14 items have been rechecked on or about the start of each succeeding month. Among the highlights of the latest survey: " The marketbasket bill went up during July at the checklist store in six cities. It went down in another six cities and was unchanged in one. On an overall basis, the marketbasket bill at the start of August was four-tenths of a percent higher than it was a month earlier. During June, the marketbasket bill rose an average of 1.3 percent. e Comparing prices today with those a year ago, the AP found the marketbasket bill at the checklist stores rose an average of only 1.9 percent. Price decreases in February, March, April, and May helped keep down the 12-month rise. " The price of a pound of butter went up in July at the checklist store in six of the cities surveyed and eggs increased in price in nine cities. Pork chops went up in seven cities. a