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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Sept. 7, 1982)
- i state 2000% tax hike a threat Battalion/Page 7 September 7, 1982 '"igs. non J Legislature in special session We want YOU! All car enthusiasts to attend our 1st meeting Wednesday, 8 Sept. #321 Physics 7:30 p.m. AWARDS, EVENT DESCRIPTIONS, FILMS tmehw United Press International AUSTIN — Lawmakers will convene a special session of the Legislature today to ward off a potential 2,000 percent increase in unemployment taxes and take advantage of an unexpected forum for pre-election poli- icking. Some state leaders convinced }ov. Bill Clements that unless lawmakers acted before Oct. 1, a complicated formula used by the Texas Employment Com mission would cause a 2,000 per- fcent jump in unemployment ™ ompensation taxes paid by exas employers. House Speaker Bill Clayton said he was optimistic that the special session would last no lon ger than three days but was con cerned about the possibility of the session turning into a “poli tical battle ground.” The mere need for a special session and the specter of a tax increase are considered political liabilities for Clements. Suppor ters of his re-election opponent, Democrat Mark White, prob ably will use the session for attacks on the Clements admi nistration. “There’s going to be people wanting to shoot at Clements and there’s going to be people wanting to shoot at everyone else,” Clayton said. “I don’t think he would have called the session unless he thought it was an emergency and I think it be hooves everyone to get in here and take care of it before it be comes a political battleground.” All parties generally agree that a 2,000 percent increase in the state tax rate would generate revenues far exceeding the fund’s needs. But unless law makers act before the formula is triggered, they will be constitu tionally bound to collect the higher tax. Airline mttiej move iwestPit — denied OF TAI United Press International LOS ANGELES — A report Of Continental Airlines’ planned move to Houston was denied Monday by a spokesman for its parent corporation, Texas In ternational Airlines. The Daily Breeze of Torr ance, Calif., reported Continen- tal, based in Southern California for more than 20 years, was to move its headquarters to Hous ton later this year or early in 1983. TI corporate spokesman de nied any plans for a move. The newspaper quoted Frank Lorenzo, chairman of Texas Air Corp., which won control of the Los Angeles- based Continental in 1981, as ready to announce the consoli dation of TI and Continental. Lorenzo and Continental President George Warde are ex pected to conduct a series of meetings with employees later this month to discuss the trans fer, the newspaper said. The newspaper quoted an unidentified Continental em ployee as saying that TI man agement already has substantial ly taken over head office func tions at Continental. Hicks said, however, there were no plans for a move or for changes in the corporate struc ture of Continental. He said TI employees work ing at Continental’s main office were part of routine changes in management. Texas Air won control of Continental last year after an ex pensive and lengthy takeover fight, and shareholders approved in July the financial combination of the two com panies, which have about $295 million in long-term debt. When the two companies combined schedules earlier this year, more than 1,000 connec tions were created in Houston. Texas International now has 71 departures daily and Continen tal has 31. Continental employs about 9,000 and has laid off 2,000 since running into financial dif ficulties last year. Rhodes Scholarship 1983-85 If you are a senior with a grade point average of 3.75 plus, you could become the TAMU nominee for a prestigious Rhodes Scholarship. You might spend the first two years after graduation widening your academic base at the Univer sity of Oxford, UK. Contact Professor J. F. Reading (5-5073, 5-7717, 696-9190) Physics, before September 15. Avoid the rush... EXPOSE YOURSELF EARLY IN THE WEEK! AGGIELAND portraits are now being taken of the Class of 85 and 86 A thru F SEPT. 7-10 G thru O SEPT. 13-17 P thru S SEPT. 20-24 T thru Z SEPT. 27-30 Your sitting is FREE, so get over to YEARBOOK ASSOCIATES AT 1700 PERYEAR STREET SPECIAL NOTICE READING EFFICIENCY COURSE This could be the most important course of your entire career! IMPROVING READING COMPREHENSION *STUDY HABITS ^SELF-ASSESSMENT *TEST TAKING IMPROVING SPEED IN READING *DIFFERENT STRATEGIES FOR DIFFERENT MATERIALS *N0TETAKING from LECTURE and TEXTBOOK ^VOCABULARY EXPANSION WHO NEEDS THIS COURSE? Freshman, Sophomore or Junior — ! on the Honor Roll or on Probation! EVERYONE can improve his/her READING EFFICIENCY! Register: 718 Harrington Tower $60.00 tuition fee — 845-7140 I Interested in LAW SCHOOL? Getl (some experience first. A CO-OP| I position is available in Dallas for (this fall semester. Fees will be re-1 I funded if you already registered.! I Act NOW. Come by 420 Harring-| ton or call 845-7814. Under the TEC formula, for every $5 million the fund drops below a statutory floor of $225 million, employers’ taxes in crease 0.1 percent. The fund currently is well below $225 mil lion and could run dry by November or December if cur rent unemployment persists. To avoid the curtailment of benefit payments, Clements and other state officials proposed borrowing from a special feder al reserve funded by nationwide unemployment taxes. “This is a little bit different from an outright loan from the feds,” Clayton said. However, the Legislature almost surely will have to approve an increase in the state tax rate to keep the state com pensation fund solvent and to provide enough revenue to re pay the federal loan. Texas employers now pay the lowest state unemployment taxes in the nation — .001 per cent of the first $6,000 earned by each employee. Seventy per cent of Texas’ employers pay an annual tax on each employee of only $6, although some busines ses with a history of layoffs pay higher rates. GOING SHOPPING? Check the ads in The Battalion for the best buys! 1*—ww rrxK n Delivers Free... Fresh! Fast! Hot Pizza! Plus Free Cokes! Call Now 846-3768 846-7751 We Guarantee 30- Minute Delivery Service! © APARTMENT COUNCIL Presidents elections FILING DATES: Monday, Sept. 6 — Friday, Sept. 10 Applications available in the OCA Cubicle #216 MSC You really should try A&M TVavel Service, Inc The most professional, most experienced travel consultants in the area gives you hometown service with computerized speed. Let us plan your trips for business and for fun. A&M TVavel Service, Inc. Owned by Keith Langford ’39 (Houston) and Diane Stribling (President and Agency Manager) 111 University Drive (in the RepublicBank A&M Building) College Station / 846-8881 We support the Aggies with an annual donation for a 12th Man Scholarship