The Michigan Daily-Wednesday, August 5, 1981-Page 3 Tax cut awaits Reagan's signature From AP and UPI WASHINGTON - The House sent President Reagan yesterday the bill he wanted to slash per- sonal income taxes in each of the next three years and launch what he contends will be an era of economic boom without inflation. Operating under unusual procedures that required a two-thirds majority vote, the House voted 282-95 for the compromise tax cut bill worked out by House and Senate negotiators during a marathon weekend session, sending it on to the president for his signature. AS HAD OCCURRED in the Senate a day earlier, final passage was held up in the House long enough for several members to try to trim some of the $11.8 billion that the bill earmarks for the oil industry through 1986. Rep. James Shannon and his supporters were no more successful than a fellow Massachusetts Democrat, Sen. Edward Kennedy, had been. The bill, which includes massive tax cuts for - businesses and special interests, will cost the T eaasury $748.8 billion in lost tax revenues through 19 . The heart of the bill is Reagan's proposal to per- manently reduce personal tax rates by an average of would be cut automatically every year, starting in 1985, to help offset inflation. REAGAN, WHO has waited nearly six months sin- ce first unveiling his proposal, planned to sign his prized across-the-board tax cut package into law today or Thursday. The first bit of the tax cut will start showing up in paychecks received in early October, but for most workers, that will amount to a decrease of less than $1 in taxes withheld. Bigger cuts in withholding will follow next year and in 1983. A typical four-member, one-earner family with $20,000 income would get a $25 tax cut - less than $2 a week - for the last quarter of 1981. The family would get an additional reduction of $228 in 1982, $371 in 1983 and $464 in $1984. When fully effective, the bill would reduce that family's current tax liability of $2,013 to $1,549. Similarly, a single person earning $30,000 now pays $5,718 in federal income taxes. That would be cut $71 this year, $566 next year, $1,117 in 1983 and $1,342 in 1984. HOWEVER, PEOPLE making less than $10,000 a year will get such a small tax reduction in 1982 that increases in inflation and Social Security payroll deductions will mean they will end up paying more. Hey, good-lookin'.! This foxy lady was spotted yesterday while cruising for hitchhikers along Huron Parkway. Prisons need 'tighter LANSING (UPI)-Michigan's riot- torn prison system needs tighter discipline, better trained guards, and improved facilities, Gov. William Milliken's special committee said yesterday. The nine-member committee, in its final report to the governor, reaffirmed its initial finding that an unauthorized lockdown by guards sparked the first riot at Southern Michigan Prison in Jackson May 22, but was sharply critical of the state Corrections Depar- tment for failing to avert a recurrence four days later. Media coverage of the riots also was criticized. THE PANEL made 39 recommen- dations and said a voter-passed ban on sentence reductions for good behavior has caused serious problems and called for alternatives. The state must hire more black guards to ease serious racial tensions, maintain minimum staffing, improve food and soothe strained relations between ad- ministration and front-line prison em- ployees, it said. Milliken called the situation "urgent," but said he stands behind embattled Corrections Director Perry Johnson. The May riots at Jackson, the Michigan Reformatory in Ionia, and the Marquette Branch Prison-called the worst in 30 years-are expected to eventually cost the state about $9 million. THE COMMITTEE, headed by for- mer Michigan Supreme Court Justice Lawrence Lindemer, said government "has an obligation to render the prisoner better equipped to return to society." "Basic to a resolution of all problems in prisons is development of adequate physical facilities to avoid system overcrowding," the 40-page report said. Responding to a chronic complaint of d1s1pine' prison guards, the committee called for stronger disciplinary measures against unruly prisoners. SPECIFICALLY proposed were elimination of automatic appeals to the circuit court, doubling the maximum major misconduct penalty, increasing availability of detention and segregation cells and improved training for guards in disciplinary procedures. The committee concluded racial ten- sion between black and white prisoners is "evident," noting 75 percent of all inmates seeking protective custody are white. White guards are predominant in the heavily black prisons and most have "little knowledge, empathy or awareness of the black experience," the report said, calling for race relations training. EAST LANSING (UPI)-A biochemistry honor student at Michigan State University is accused of running a laboratory that could produce enough cocaine to "get MSU high for a long time," police said yesterday. Phillip Lyle Lamoureux, 21, a senior from Dayton, Ore., attending MSU on a scholarship, was arraigned in U.S. District Court in Grand Rapids on charges of conspiracy to manufacture cocaine. HE WAS released on a $5,000 personal recognizance bond. Preliminary examination was set for Aug. 19. Det. Lt. Gene Wriggelsworth of the Tri-County Metro Narcotics Squad said Lamoreux's laboratory in suburban Williamston was capable of producing drugs with a street value "in the millions." He called it one of the largest seizures ever made in the area, but said Laboureux has not been found with any drugs. "It would be enough to get MSU high for a long time," Wriggelsworth said of the lab's potential production. The maximum penalty for cocaine con- spiracy is 15 years. TWO OTHER suspects were- being sought on conspiracy charges, he said. Wriggelsworth said that the metro squad, along with the federal Drug En- forcement Administration and MSU campus police, has been stalking Lamoureux for at least two years. According to a roommate, Lamoureux is "really smart" and "not into messing up anybody." The room- mate said Lamoureux only "dabbled" with the laboratory. Wriggelsworth said Lamoureux was operating with equipment worth $2,00, much of which he had bought himself.