faxes down, cost of living up
under value-added tax proposal
Plant could open in seven years
THE BATTALION Page 11
WEDNESDAY, OCTOBER 24, 1979
Texaco plans to gasify coal
United Press Internationa]
WASHINGTON — If the
sionisfree, House’s chief tax writer has his
A&M Psu wa y- the price of almost everything
sition Anall 1“ buy will rise by up to 10 percent
— but you 11 have more money to
spend because taxes on income and
udder Oranj Social Security will go down,
aiding in tlif j House Ways and Means Chair-
t Show. man Al Ullman, D-Ore., has pro-
the Texas Dt P° se d legislation to impose the
in Room 1! country’s first value-added tax, a
device used for many years in sev
eral European countries,
u a , At the same time his $130 billion
x 1 eu ; inclirect tax would go into effect,
there would be a $130 billion cut in
will be heldj direct taxes, along with an increase
ill be shown, in business tax incentives,
t 7:30 p.in,iiB ncome taxes would drop an aver-
ade for Christ ^ percent, Social Security
, t-H 35 wou hl be cut by a third, and
1 11 ' l! various tax revisions would be made
to aid the poor and the elderly and
to encourage saving.
;t at 7.15 p* ,; Don t look for immediate action
on the idea, however. Hearings
ffigin Nov. 7, and it could l>e years
ffijre any action is taken. The con-
cept, moreover, has many foes.
[;;dn effect, a value-added tax is a
sales tax because it is charged at
band Oner $ach step of the manufacturing pro-
rouse ggss on the amount of value that is
m the Univtr added to the product. At the retail
’ Growing lj level, the consumer pays the tax in
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'orms may
Rollie White
Bullock: tax ‘sneaky’
United Press International
AUSTIN — Comptroller Bob Bullock said Tuesday a proposed
federal value-added tax would be the sneakiest blow to the American
public since Pearl Harbor.
Bullock, recuperating from a heart attack, issued a statement
through his office strongly criticizing the value-added tax suggested
by Rep. Al Ullman, chairman of the House Ways and Means Com
mittee.
“It’s the income tax wolf in sales tax sheep’s clothing, ’’ Bullock said.
“It has the complexities of the income tax system and the regressive
ness of a high sales tax. ”
Bullock said the tax would be included in the final sales price of
products, meaning the tax would fall hardest on lower-and middle-
income consumers.
“The only winner seems to be the federal treasury which will be
raking in 10 cents on the dollar for every product and service in the
country,” Bullock said.
“Let’s face it, they want a new tax to pay off the billions of dollars
we now owe as the result of deficit spending.”
Bullock said a value-added tax would make all products cost more.
the form of higher prices.
For instance: if an auto manufac
turer uses $1,000 of steel to produce
a $4,000 car, the value of that steel
has been increased by the manufac
turing process. A tax on this in
crease in value would be passed on
to the consumer in the form of a
Biggest since Stalin
Dissidents on trial
higher price on the car.
Under Ullman’s plan, the tax
would be structured so the
maximum amount of price increase
at the retail level would be limited
to 10 percent, but there would be
exceptions.
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MANOR EAST 3-3
United Press International
PRAGUE, Czechoslovakia — Authorities ignored protests from
the United States and Western Europe Tuesday and pushed ahead
1 floor of the w ith one of the biggest political show trials in the Communist bloc
since the Stalinist era.
The trial of six prominent signers of the Charter 77 human rights
manifesto entered its third day Tuesday, with four men and two
women charged with “subversion of the state abetted by a foreign
agent” — identified as the CIA.
The six, arrested in simultaneous police raids May 29, face sen
tences of between two and 10 years in prison. The verdicts are ex
pected Thursday.
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STARTING OVER
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WHEN A STRANGER
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Food, medical care and residen
tial housing would be limited to a 5
percent tax. No tax at all would be
charged on transactions of govern
ments, charities, public and private
nonprofit educational institutions,
mass transit and nonretail sales by
farmers and fishermen.
The tax would be charged on im
ports, but would be rebated on ex
ports in an effort to make U. S. goods
more attractive in other countries.
Ullman proposed these tax cuts
and changes:
— A $52 billion cut in Social Se
curity taxes, lowering the rate on
employees and employers to 4.5
percent in 1981. The rate now is
scheduled to go to 6.65 percent in
1981.
— A $42 billion income tax cut,
an average of 18 percent concen
trated on middle-income taxpayers,
and lowering the maximum 70 per
cent tax rate to 50 percent.
— Expanded earned income
credit for the working poor, and the
standard tax credit for the elderly
would be made refundable, mean
ing it would be paid from the gov
ernment even if no tax was owed.
Aid to families with dependent chil
dren would be increased.
— Special incentives for saving,
including an expansion of individual
retirement accounts and special sav
ings accounts on which no tax would
be charged on interest on savings
accounts of up to $1,000.
-— A $28 billion cut in business
taxes as well as incentives, including
a lowering of the corporate tax rate
from 46 percent to 36 percent.
United Press International
BUFFALO, Wyo. — Texaco Inc.
and a Houston-based energy com
pany Tuesday announced plans for a
feasibility study that could lead to
construction of a coal gasification
plant capable of producing up to 250
million cubic feet of natural gas
daily.
Texaco spokesman John Masson
said it would take five to seven years
before natural gas could flow from
the plant north of Buffalo, assuming
every step in the tedious process
from feasibility study to finished
structure went smoothly.
The source of coal and water
would be Texaco’s holdings of 2.3
billion tons of coal on 37,000 acres of
land near the Lake DeSmet Reser
voir on the western edge of Wyom
ing’s coal-rich Powder River Basin.
The energy company also owns
about 50,000 acre-feet of water in
the reservoir, which has a capacity
of 239,000 acre feet.
“After completing the study and
complying with the environmental
and regulatory requirements it is
anticipated that a coal gasification
plant would be built relatively close
to Texaco’s Lake DeSmet Reservoir
property, ” Texaco said in a prepared
statement.
The main partner in the project
would be Transwestern Pipeline
Co., a subsidiary of the Houston-
based Texas Eastern Corporation.
Earlier this year, Texas Eastern un
successfully attempted to gain ap
proval for use of Wyoming water in
a coal pipeline to the Gulf Coast.
Texaco bought the DeSmet coal
lands from Reynolds Metals Co. in
1973 and three years later submit
ted a proposal to the federal Energy
Research and Development Admin
istration for a “demonstration”
gasification plant. The agency, how
ever, turned down the plan.
In Cheyenne, Richard Moore of
the Wyoming Industrial Siting Ad
ministration said the gasification
facility, if built, would be compara
ble in size to a 1,500-megawatt
power plant. It would, however, re
quire a substantially larger work
force.
Masson said said the gasification
plant would be built and operated
by Transwestem. Its capacity would
be between 100 million and 250 mil
lion cubic feet a day.
“In addition to supplying the
water and operating a mine to sup
ply the coal, Texaco has an option to
participate by up to one-third own
ership of the gasification plant,”
Masson said.
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WHEN THE TRIAL began Monday, a tight chain of security
guards barred diplomats from the United States, Britain, Canada,
West Germany, Holland and Italy, journalists and a representative of
Amnesty International from the courtroom.
The opening of the trial sparked protests from the governments of
many Western European nations, the head of the European Parlia
ment and the Communist parties of France and Italy.
1 A trial of such a large group of political dissidents has not been seen
Lin the Communist world since the purges of the Stalinist years,
p In Washington, a State Department spokesman said Monday, “We
deplore the arrest of this group and their trial for exercising their
legitimate human rights.”
THE SPOKESMAN SAID the United States has expressed its
•; concern about the trial directly to the government of Czechoslovakia,
most recently last week in diplomatic contact.
“We understand four or five other persons will also be brought to
trial” in Czechoslovakia on similar charges, the spokesman said.
More than 100 fellow dissidents gathered outside the courthouse,
under the scrutiny of plainclothesmen, to show their solidarity with
the accused.
The defendants include Czechoslovakia’s most noted playwright
Vaclav Havel, 43, Jiri Deinstbier, before 1968 the nation’s most popu
lar radio broadcaster, Peter Uhl, 39, an economist and Vaclav Benda,
33.
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THE WOMEN ARE Dana Nemcova, 46, a psychologist and Otta
Bednarova, 52, a former television journalist who until her arrest was
working as a cleaning woman.
Only close relatives of the defendants were allowed to attend the
proceedings, but they were threatened with prosecution if they re
vealed details of the “secret” trial to those standing vigil outside.
Anna Uhl, wife of defendant Uhl and the daughter of jailed Charter
77 activist Jaroslov Sabata, was dragged from the courtroom shortly
after the trial began when she insisted on taking notes of the proceed
ings. Dissident sources said she and the unidentified wife of another
defendant have been placed under arrest.
Defense sources said the indictment referred to articles the defen
dants smuggled to exile publications — newspapers and magazines
the government charges are financed by the CIA.
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