Viewpoint
The Battalion Wednesday
Texas A&M University May 9, 1979
V -
Carter windfall tax not as tough as expected
By DON PHILLIPS
WASHINGTON — President Carter
seems to have learned one big lesson in
dealing with Congress: pick your fights
carefully and then don’t hold any punches
in trying to get your way.
As a general rule, as long as the fight
doesn’t get personal, the grizzled politi
cians of Capitol Hill will respect a gut
fighter and won’t hold a victory against the
winner.
But when he brought up his tax on oil
company windfall profits, Carter forgot a
basic lesson in dealing with the public:
don’t build expectations beyond what you
intend to deliver.
In short, the windfall profits tax that
Carter ballyhooed to the country in his
very effective effort to sell Congress on the
idea was, to say the least, a puffed up ver
sion of the tax that he eventually sent to
Congress.
The prevailing wisdom in Congress
when Carter first mentioned the tax was
that it couldn’t pass.
But Carter took his case to the people.
Mincing no words, he whipped up public
support by castigating the oil companies
and pointing out the tremendous profits
they would reap when he decontrolled the
price of oil — an action mandated by Con
gress itself.
He was helped along by a twist of fate
which must have oil company public rela
tions officers still kicking their desks. A
few days after his announcement, oil com
pany quarterly reports showed a tremen
dous increase in profits.
Seemingly overnight, the mood in Con
gress shifted, and it seemed that the battle
would not be over whether to have a
windfall profits tax, but over how much
would be returned to oil companies as a
“plow back” for money they spent in actual
exploration and development of energy
sources.
Again, Carter went to the public and
marshalled his forces on Capitol Hill, and
it appeared once again that he would pre
vail and kill any plowback scheme.
But then a funny thing happened on the
road to victory. Carter revealed the details
of his plan and it turned out not to be as
tough a tax as he had built it up to be.
In fact, over three years it is estimated
that the tax will collect only about $3.7
billion of the estimated $14 billion in ex
cess profits that will flow from decontrol as
the price of controlled domestic oil rises to
the world market level.
The tax was so mild that almost
everyone jumped at the chance to support
it, and oil state congressmen said privately
that it was about the best they could hope
for, given the mood of the country. Plow-
back talk almost vanished.
The major reason that the tax was so
mild was that the excess profits taxes paid
by oil companies may be taken as a busi
ness deduction against regular income
taxes.
Since the corporate tax rate on profits is
46 percent, every dollar of deductions is
worth 46 cents. In short, allowing the
windfall profits tax to be a deduction
against the corporate income tax cuts the
effect of the windfall profits tax by 46 per
cent in one swoop.
Perhaps, in practical terms, Carter’s
strategy will result in the best possible
deal he could get from Congress.
Perhaps he will gain support by first
frightening oil state legislators and oil
companies with a tough-sounding tax,
then relieving them by asking for less.
But such strategy may also fertilize the
seeds of cynicism that already are planted
deep in the minds of the American people.
Ronstadt, Brown may as well have stay home
By DICK WEST
WASHINGTON — I like public opinion polls that
really get to the bottom of situations, as opposed to
those that merely skim the surface.
You can see what I mean in a survey by Public Inter
est Opinion Research, a local polling firm, regarding
California Gov. Edmund Brown’s recent trip to Africa
with singer Linda Ronstadt.
The first question posed was: “In your opinion, as a
result of the trip, would you be more or less likely to
consider Governor Brown as a possible presidential
candidate?’’
The significance of that inquiry can hardly be exag
gerated insofar as the 1980 presidential race is con
cerned.
Had the poll shown a sharp upsurge of consideration
for Brown, Miss Ronstadt would have been inundated
with safari invitations.
As it was, 12 percent of those tabulated did indeed
represent themselves as “more likely” to consider
Brown. However, that positive reaction was offset by
26 percent who said they were “less likely” to consider
him.
And what of the majority whose opinion could be
crucial? Well, 51 percent said Brown’s trek with the
pretty, young rock star made “no difference” in their
view of his potential candidacy.
That doesn’t necessarily mean they were indifferent
about it. The 51 percent might well have strong opin
ions pro or con. It simply means their feelings were the
same after the trip as before.
The remaining 11 percent expressed “no opinion.”
That could mean they were undecided whether they
felt better or worse toward Brown. Or it could mean
they were keeping their opinions to themselves.
In any event, the overall thrust of the poll is that the
impact of the odyssey on Brown’s presidential pros
pects was negligible.
So don’t look for any wholesale competition to enlist
Miss Ronstadt as a traveling companion.
As I suggested earlier, some polls which have
plumbed the public psyche for the political implica
tions of Brown’s travels might have dropped the sub
ject there. Not this one.
After sampling how the public felt about Brown
going on such a trip with Miss Ronstadt, this one pro
ceeded to the next logical question: How did the public
feel about Miss Ronstadt going on such a trip with
Brown?
Ten percent thought more highly of Miss Ronstadt
for having accompanied the governor, and 15 percent
thought “less of her. ” There was a 61 percent majority
whose regard for Miss Ronstadt was unchanged, and 14
percent had no opinion.
As I analyze the survey, voyaging with a governor
doesn’t do much more for a singing career than voyag
ing with a rock star does for a political career.
Poll-wise, it’s almost as if they never left home.
Cops and kids again
Editor:
I would like to comment on Mr. Stone’s
letter and on those sent in retaliation.
There are some parts to Mr. Stone’s letter
that have truth to them. I wish that those
students who read the letter would read it
again with an open mind.
Concerning Ronald O. Bucchi’s letter to
Mix. Stone: You really had a lot to say but
only reinforced my stereotype of the rich
kid. Look who’s talking about tones of let
ters relating to IQ! You stuck your foot in
your mouth.
Now to Robert Hafernik’s letter. Do you
really think it is the policeman’s idea to not
ticket certain areas?
I’m happy with the KKs’job. I really
wonder how many tickets they write are in
actuality “undeserved.” I would also like
the students to remember the tickets they
get out of with made-up stories, of which I
am no exception.
Finally, I would like to thank Mr. Stone
for his letter. It’s been a long time since
the letters to the editors have been inter
esting to read.
— Paul A. Hayes, ’81
Good riddance
Editor:
This letter is addressed to Mr. Thomas
Stone, the ex-KK that felt possessed to get
in one last kick before he leaves the place
we all love and cherish.
Mr. Stone, this is not a “Highway 6...”
letter. I don’t think you are worthy of that.
I do, however, say “good riddance” to you.
I’ll try not to sound too sarcastic — a con
sideration you obviously did not bother
with.
First of all, I do not appreciate being
called a “rich crybaby” simply because my
father gave me a car. And I do not care
Letters to
where I park it — it’s the only means of
transportation that is always available to
me.
Second, I’ve never ignored a ticket, nor
have I called home for “daddy” to help pay
for one — I wasn’t brought up that way.
(Although I do know he would not hesitate
to help me out in time of need, should I
ever ask.)
Third, since you bring up the subjects of
the real world and of money in such
closely related context, I might bring it to
your attention that it is not so uncommon
for money to “talk” out there as much, if
not more so, than on our campus. (I won’t
talk about what goes on in the upper eche
lons.)
Fourth, I’ve had vast experience with
my car not starting. And since College Sta
tion servicemen often won’t bother to
come help start your car when you need
them, I’ve found it best to call on a friend
(but then you probably don’t know what
that is, do you?).
And since you don’t appear chivalrous
enough to aid a lady when she calls upon
you, I might point out that next year, the
ladies will be parking across the tracks,
just like the gentlemen — equal rights and
all. So you better get out quick before a
thousand girls want a ride to their dorms. I
might also mention that judging from the
tone of your letter, we students are more
mature than you appear to be.
Lastly, let me state that if you are un
happy in your present economic stratum,
why did you choose the career you chose?
Obviously, you’ve decided it’s not the
thing for you. And as far as you finding
students “unfriendly and hostile” goes,
you instigated that reaction yourself, not
we. If you would try being more friendly
and less sarcastic, you might find that
people can be quite amiable. That’s the
real world.
— Dwain Handley, ’82
the Editor
Parents grateful
Students:
We would like to thank the students,
members of the faculty and the staff of
Texas A&M for all the many acts of kind
ness to our family during the days follow
ing the loss of our own Aggie, Wendy
Waterman.
Wendy had told us many times of tl^e
moving and beautiful Silver Taps cere
monies that she had attended and how
meaningful they were to her. Before her
death she had invited us to attend Parent’s
Day and Aggie Muster. Because she was
so touched with the spirit and traditions of
A&M, and felt such pride at being an Ag
gie, we wanted to be part of these things
for her.
It was true — all these things she had
told us — we had experienced them for
ourselves, at the sad and dignified Silver
Taps, and again at Aggie Muster. These
tributes to your “fallen comrades” filled
our hearts with gratitude that Wendy was
a part of such a fine tradition and had this
wonderful experience of Texas A&M even
for so short a time.
A university is only a campus with build
ings and books and people, until it be
comes one like yours whose warmth and
feelings show what Texas A&M and “Ag
gies” are all about. Wendy knew; we are
learning.
We feel like Wendy is still a part of
A&M. And the “Spirit of Aggieland” will
always be in our hearts.
— Mr. and Mrs. H.W. Waterman and
family
Not just PR problem
Editor:
In last Wednesday’s editorial, Mr.
Pendleton, in stating his reasons for oppos
ing the reinstatement of the draft, appears
intent on playing down the basic issues
which underlie this problem. To him it is
simply a public relations problem faced by
the armed forces and should not be
enacted now because of the controversy
and “suspicion of (the nation’s) leaders” it
would cause.
However, the issues which must be dis
cussed are not whether the draft can be
sugar-coated to make it acceptable but
whether the United States government
should have the power of conscription and
whether it should follow an interventionist
foreign policy which requires greater re
serves of tnanpower in order to uphold
some of the most corrupt and repressive
governments in the world. Apparently
Mr. Pendleton accepts this role for the
U. S. as evidenced by his reference to “the
next time we send in the Marines” as a
given fact.
Also implied by Mr. Pendleton is that
scraping the draft at this time would avoid
a confrontation between the nation’s youth
and their “parents’ culture,” or establish
ment. The situation in this country at the
present time, however, makes a confronta
tion inevitable. This time though, the lines
will not be drawn between one generation
and another but rather between those who
wield power and those who oppose their
insane policies of continued endorsement
and protection of nuclear power plants,
further development of nuclear weapons
(such as the MX missile), and now the at
tempted return to mandatory service in
the military in order to defend the U.S.
monetary interest abroad.
To ignore these problems is to allow
these policies to continue and probably to
expand. Discussions and confrontations
which can help develop possible solutions
should be encouraged not stifled. The
lines for the next confrontations are being
drawn and people will have to decide
which side they will be on.
— Alex Berckman
Prof extends thanks
Editor:
I would like to extend my thanks to the
Association of Former Students for the
teaching award received this year. I would
also like to thank my colleagues, my stu
dents, and my former students who were
kind enough to recommend me for this
honor.
This teaching award is, in reality, a
“team trophy,” since the teaching in our
First Year Chemistry program (of which I
am unashamedly proud) depends entirely
on the cooperation of the faculty and staff
of the Department of Chemistry. The
level of cooperation and support that we
have had from our entire faculty, our De
partment Head, and our Administration is
unmatched on any other campus in the
country.
The award is the second greatest honor I
have ever received. The first is the
privilege of working here with the finest
people on the face of the earth — the Ag
gies.
God bless you all.
— Rod O’Connor
Professor and Director
First Year Chemistry
Throwing toast
Editor:
How lucky we are in the seventies to
have “The Rocky Horror Picture Show”
where we can dress in drag and throw
toast in the air...
— Steve Schulte, ’82
Top of the News
LOCAL
Cyanide-infested road removed
A waste disposal company ordered to remove hazardous waste used
to surface a road in a Corrigan subdivision plans to begin the work
this week, a spokesman said today. Don Fitch said Browning Ferris
Chemical Services Inc. had hired an East Texas contractor to digout
and resurface a road in the Reiley Village Subdivision where the
Texas Department of Water Resources found cyanide in the surfac
ing. The department, which began its inquiry after cattle deaths
raised suspicion about runoff water in the area, last Friday ordered
Browning-Ferris to remove the waste sludge used as paving.
STATE
Hearings in Davis trial open
Tarrant County prosecutors Tuesday opened a change of venue
hearing for the second T. Cullen Davis murder solicitation trial by
calling a woman who organized a taxpayers’ protest of the retrial. Joy
Smith, who denies she ever has met the millionaire, said she has
collected more than 76,000 signatures and distributed 11,000 bumper
stickers which read “Taxpayers’ protest of the third trial of Culler
Davis.” In addition to Davis’s earlier trial in Houston on the murder
solicitation charge, he was acquitted in Amarillo in 1977 on a murder
charge. “(It’s) a waste of taxpayers’ money to do it again,” Smith
testified. “I object to the way tbe entire thing has been handled. It
was nothing but a railroad job.” She added she thought Davis could
get a fair trial in Fort Worth. Smith organized her campaign five and
one-half months ago and claims Davis’s earlier trials have cost Tarrant
County taxpayers $457,000.
NATION
1
Rolling Stone publisher buys Look
Jann Wenner, the publisher of Rolling Stone magazine, said today j a t
he is taking over the recently revived Look magazine and will be ^
changing it from a biweekly to a monthly. After the June 11 issue, H
Wenner said, Look will become a monthly. The outgoing editor and®
president of Look, Robert Gutwillig, had vowed that the magazine H
would continue to be published every other week. ■
Me
onl
Pops conductor hospitalized
Boston Pops Maestro Arthur Fiedler was in good condition Tues
day at the Tufts New England Medical Center where he was hos
pitalized after a fainting spell. The 84-year-old conductor was admit
ted Saturday night after the conclusion of a concert. He blacked out
for about 30 seconds and complained he felt dizzy. Hospital officials
said it is expected that Fiedler will remain in the hospital for another
couple of days. “I’ve talked to people who have seen him. They
inform me that he is resting comfortably. He is very bright and
talkative, Boston Symphony Orchestra spokesman Peter Gelb said
Monday.
Old fishing treaties held valid
A federal judge, in a landmark Indian treaty rights ruling, today
held that two 19th century treaties give Indians unlimited fishing
rights which cannot be limited by the state. U.S. District Judge Noel
P. Fox, in a 131-page, fact-finding decision stemming from a
longstanding dispute between two Chippewa tribes and the Michigan
Department of Natural Resources, said no state has the right to limit
or in any way infringe upon rights granted Indians in treaties with the
United States. While the decision is a sweeping affirmation of Indian
treaty rights, parties to the case were unsure how widely it would be
applied in other treaty-rights cases before the federal courts.
WORLD
Missing link located in Burma?
Dr. Russell L. Ciochon, in his first year on the anthropology staffat
the University of North Carolina Central, reported at a news confer !
ence on an expedition to Burma in which lower jaw fragments oil
primates believed to be 40 million years old were discovered. He said
the fossils support the theory Burma may have been the point of
origin of the anthropoids, the common ancestors of monkeys, apes
and humans. The origin of higher primates has been documented to
the satisfaction of most scientists to about 30 million years ago in the
Fayum region of Egypt. The first fossil, believed to be 40 millioi
years old, was discovered in 1978 by two Burmese scientists from the
Mandalay Arts and Sciences University, and resulted from a projett
developed by Ciochon and Dr. Donald E. Savage of the University of
California at Berkeley.
WEATHER
Cloudy skies turning partly cloudy this afternoon with a 207o
chance of rain. High today 80 and a low of 70 with winds S.E
at 15-20 mph.
The Battalion
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