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Page 4/The Battalion/Tuesday, January 17, 1984
Tu
Reagan says arms talks with Moscow ‘essential
United Press International
WASHINGTON — Presi
dent Reagan, seeking to ease a
mood of superpower confronta
tion, said Monday U.S. nuclear
might is “making the world a saf
er place” but renewed arms talks
with Moscow are essential to
global peace.
Softening his recent anti-
Soviet rhetoric but standing by
to his philosophy of peace
through strength, Reagan chal
lenged the Kremlin to resume
negotiations “to work for prac
tical fair solutions on the basis of
mutual compromise.”
The Soviet news media dis
missed Reagan’s speech as “a
pseudo-peacable tirade.”
The Soviets walked out of
negotiations aimed at limiting
nuclear and conventional arms
late last year in response to
NATO deployment of U.S.
medium-range, nuclear war
head-equipped missiles in West
ern Europe.
Since talks broke off, the
Kremlin has been warning that
deteriorating U.S.-Soviet rela
tions have increased prospects
for a military confrontation.
Reagan sought to counter
public concerns about a possible
war, and to set the stage for his
re-election campaign as a man of
peace, in a 24-minute address
televised nationwide Monday
and aimed at a prime-time audi
ence in Western Europe.
“Strident rhetoric from the
Kremlin,” Reagan said, has led
some people “to speak of height
ened uncertainty and an in
creased danger of conflict. This
is understandable but pro
foundly mistaken.
“Look beyond the words and
one fact stands out. America’s
deterrence is more credible and
it is making the world a safer
place — safer because now there
is less danger that the Soviet
leadership will underestimate
our strength or question our re
solve,” the 72-year-old president
said.
“But to say that our restored
deterrence has made the wmi
safer is not to say thatitisu
enough.
Nuclear arsenals are fart
high. And our workingrelatit
ship with the Soviet Unionist
what it must be. These arecoij
lions which must be addres*
and improved.”
...sale
District judge denies
AT&T rate request
United Press International
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RECORDS, TAPES & A LITTLE BIT MORE.
AUSTIN — AT&T Com
munications must pursue its re
quest for a $115.4 million
emergency increase in Texas
long distance rates through the
Public Utility Commission and
not the courts, a state district
judge ruled Monday.
After less than an hour of
arguments. District Judge Jerry
Dellana refused to let the com
munications giant begin collect
ing the rate increase, even
though the company claims it
has been losing money at a rate
of $300,000 a day since Jan. 1.
AT&T lawyers had asked De
llana to issue a temporary in
junction against the PUC that
would have stopped the com
mission from interfering with
the company’s efforts to collect
the additional revenue.
The company said it needed
the 10.7 percent increase in long
distance rates to offset more
than $617 million in charges it
must pay Southwestern Bell
Telephone Co. for access to
Bell’s local telephone lines.
The access charges, which
AT&T began paying New
Year’s Day, were included in a
$653 million interim rate hike
granted to Bell in December.
The PUC rejected the com
pany’s request for an immediate
rate hike in one previus hearing,
saying more time was needed to
study the request. AT&T
reacted by taking its case to the
courts.
However, Dellana ruled the
company had not exhausted all
its appeals at the PUC and
the commission still had jurist
tion over the case.
A hearing on the AT&T
ouest was set for Friday beft
the full commission.
During Monday’s heari
AT&T attorney Joyce Beat!
said the PUC had refused
grant the higher rates, ei
though the agency ordered
added access charge expena
“Every day that theydoso
another day that we must
dure an operating loss/’Beai
said.
However PUC consult!
counsel Jim Boyle said aniid
pendent accountant hiredb|i
office had issued an opira
stating that AT&T’s records
dicated the company was
earning a profit.
Privately-funded program
proposed as an alternative
to ‘floundering’ Medicare
United Press International
DALLAS — The National
Center for Policy Analysis, a
Dallas-based conservative think-
tank, Monday released a prop
osal for replacing what it de
scribes as a floundering Medi
care program with privately-
funded individual health care
schemes.
The proposal, under study by
the Social Security Advisory
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Council, recommends giving
workers tax credits for contribu
tions to “Health Bank IRAs”
during their working lives, to be
used to pay for health care or to
buy health insurance plans upon
retirement.
The proposal projected a
Medicare trust fund deficit
reaching $400 billion by 1995,
assuming current rates of in
crease in Medicare outlays and
taxable payrolls.
“The deficit is only a short
term liability, however,” the
study said. “If (the current
trend) continues, Medicare
spending will account for one
out of every three dollars in the
budget 50 years from now.”
The NCPA’s proposal would
have people entering the work
force receiving tax credit’s equal
to what he or she would other
wise be paying in Medicare
taxes, beginning at age 20 with a
$464.10 contribution, increas
ing to $3,961.37 when he or she
reaches age 65.
At that rate, the study pro
jects a worker’s account would
accumulate $476,519, including
nine percent annual interest.
This fund could be used to buy
health care directly, or to buy
health insurance, the study
proposes.
For each year the worker con
tributes, he or she loses a corres
ponding fraction of Medicare
entitlement. The fund would be
part of the worker’s estate, and
could be passed on to heirs.
placed into their accounts,
“We’re talking about pt
who would be on Medicaid(k
ing their working lives,”
University of Dallas econom
Dr. John Goodman, one
study’s authors. “We’dliketo]
everyone into the systti
whether they pay taxes omit
Goodman said the prtst
Medicare system also assuM
shorter life span than nowis
case, and it assumes pe
have large families, thusbret
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The proposal reco/n
mends giving worker
tax credits for contri
butions to “Healtli
Bank IRAs” durini
their working lives, to
be used upon retire
ment.
To sul
ing a growing tax base to sf
port Medicare later.
“We’re putting youngstd
those who are entering theft .
grade now, at great risk,” Go#! _° lce
man said. “The most imports
thing about this proposal is
it ends the ‘pay as you go’
of funding.”
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Dr.
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U.S. Chamber of Comme®
chief economist Richard
who co-authored the
study and also sits on the Sod
Security Advisory Board, s*'
the board voted 9-2 last mi
to study the proposal as a I
term solution to Medicare5^ ,Q wan g
ing problems. ar was <
pot othe
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For people who pay no taxes,
the government would grant a
$500 credit annually to be
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