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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Dec. 7, 1984)
Friday, December 7, 1984/The Battalion/Page 13 roposed flat taxes will ffect municipal bonds United Press International NEW YORK — The flat-tax pro posals unveiled by the Treasury De partment could have a dramatic im pact on all securities markets, but the outcome of debate on the proposals will be especially significant for mu nicipal bonds. I “Out of the multi-sided debate which will ensue between the White House, Treasury, Congress, state and local governments and an array pflobbyists and special interests, sig- nificant tax reforms seem sure to ||merge,” said Steven J. Hueglin, Bartner in Gabriele, Hueglin 8c Bash man, a Wall Street bond house Khat just completed a study, “Flat &ax and the Municipal Bond Mar- Iket.” I “But despite the well-publicized Negatives for the municipal market,” Hueglin said, “the real sleepers in Bhe proposals are positive for bond- holuers.” I For bond holders the major el ements in the proposed tax reforms B re: d •Reduction in the top individual Mncome tax rate to 35 percent with elimination of various deductions, ncluding those allowed for state and t local taxes. I •Reduction in corporate tax rates to 33 percent with elimination of ac celerated depreciation, investment Mattress Set $79.95 This mattress & foundation set offers itrue firmness at an affordable price. Bed frames $15.00. Texas Furniture Outlet 712 Villa Maria TJUfiRP€D THR€€, MR. SCOH!" owPi The Third Collection' of "UUorped," The Comic Strip bp Scott Me Cullor. Available soon ot : Bobbie's Books. Loupot's, Hosting's ond B. Dolton. ■ " IU '■-'M* im CM h- O CO cb cb 0) CO CO Ico ;i*d !fSl 6 'Q S •P<s oi 16” £ Get your haircut with the style you need for your hair by our trained professionals. Haircuts NOW ^050 ONLY 90 Shampoo and conditioner included For Men & Women Great Styles THE Start At VARSITY 301 Patricia SHOP Behind Northgate College Station 846-7401 something for everyone in the Other issues likely to be glintyfr&tzd from the tax- exempt sector are student loan bonds, and pubiic pifypqpe industrial bonds as those issued for tax credit benefits and bank deduc tions for carrying municipals. •Prohibition of some tax-free municipal bonds now being issued. •Treatment of capital gains as or dinary income with gains adjusted for inflation. Hueglin said the only real neg ative for bondholders is the pro posed reduction in the income tax maximum to 35 percent. “The municipal market is more sensitive to changes in supply than changes in tax rates,” Hueglin said in a telephone interview. “Fear that lower taxes will hurt it are largely unfounded.” Hueglin said proposals that effec tively eliminate most tax shelters and severely reduce the appeal of real es tate as an investment are “most posi tive” for municipal bonds. Many issuers will be adversely af fected. “Sure to go are tax-exempt cor porate bonds,” Hueglin said. “Tax- exempt housing bonds are almost certainly out.” Other issues likely to be elimi nated from the tax-exempt sector are student loan bonds, public pur pose industrial bonds such as those issued for stadiums, and private bonds issued by hospitals and col leges, he said. “Even if all of these are not elimi nated, a third of supply could be cut off,” Hueglin said. Proposals to eliminate deductibil ity of state and local taxes also will have major impact on bondholders. “People in the 50 percent bracket won’t get half price on state and local taxes anymore,” he said. For example, for someone in the 42 percent bracket, $1 of state taxes could cost $1 instead of 58 cents as before. But this in turn will make state and local exemptions on municipal bonds more important, especially in high-tax states like New York and California. Although tax reforms will proba bly not become law until 198§ or 1987, changes affecting long-term bonds will be anticipated by the mar ket in the coming moiiths. Paris Ballet to perform in festival United Press International SAN ANTONIO — The Paris Ballet will present three produc tions in the 1985 San Antonio Festival, marking the dance group’s first American appear ance in 36 years, festival organiz ers said 1 hursday. Negotiations for the ballet’s ap pearance were completed in Paris between festival director Parvan Bakardjiev and M. Andre Lar- quie, president du conseil of the Paris Opera Ballet. The French troupe will per form a new production of “Swan Lake,” classic ballet treatments of “Romeo and Juliet,” and a full- length ballet in the grand tradi tion of “Raymonda.” The exclusive performance will be the ballet’s first appear ance in the United States since 1949. The negotiations also call for the sets and costumes from the Paris Opera’s production of “Ro meo and Juliet” to be featured as part of the festival’s “Romeo and Juliet” theme. In return, the sets and cos tumes from the festival’s 1984 production of “William Tell” will be loaned to the Paris Opera, which may participate in the 1986 Festival, Bakardjiev said. Key witness says testimony not true United Press International LOS ANGELES — A key prosecu tion witness in the murder trial of Ricky Kyle, charged with killing his father, Texas tycoon Henry Harri son Kyle, admitted Wednesday she has not been truthful in her testi mony. Jackie Phillips, the defendant’s half-sister, made her admission as defense attorneys attacked her cred ibility, pointing out numerous incon sistencies in her testimony at the trial and her testimony at a preliminary hearing in January. Phillips testified Tuesday that Kyle, 22, confessed to her that he killed their father in July 1983. The alleged admission came after Kyle, Phillips and her former fiance, busi nessman Henry Miller, had been drinking and taking cocaine the day of the victim’s funeral. Phillips, 29, a former fashion model and admitted cocaine user, frequently responded to the lead de fense attorney’s questions with heavy sarcasm, mocking laughter and an occasional obscenity. At one point, Phillips apparently became so unnerved that she ad mitted she had been less than com pletely truthful when she testified at the preliminary hearing. When asked if she had told the truth at that hearing, Phillips replied “kinda,” and then added, “I was try ing to protect my brother (Ricky Kyle).” A short time later, however, she maintained she had told the truth at the hearing. The defense attorney pointed out numerous inconsistencies in her tes timony at the trial and her testimony at the preliminary hearing. They in cluded: •Her assertion at the trial that Ricky Kyle told her he had shot his father twice. At the preliminary hearing, she made no mention of Kyle saying he had shot their father twice. •Her testimony at the trial that when Kyle Confessed the slaying to her, he was unemotional. At the pre liminary hearing, she testified he was “extremely emotional and up-~ set.” Despite those inconsistencies, Phillips’ basic story that Kyle con fessed the slaying to her at Miller’s home was essentially the same at both the preliminary hearing and the trial. Prosecutor Lewis Watnick plans to reinforce Phillips’ testimony by call ing Miller, who also allegedly over heard Kyle’s confession. The prosecutor alleged last week in his opening statement that Kyle “executed” his father by shooting him in the back because he feared he was about to be cut out of the multi millionaire’s will. Kyle and his brother, Scott, were the principal heirs to an estate valued at up to $100 million. Good friends keep you going when all you want to do is stop. want ads Your feet hurt. Your legs hurt. Even your teeth hurt. But your friends thought you looked terrific. And with them urging you on, your first 10 lalometer race didn't finish you. You finished it. Now that you have some thing to celebrate, make sure your support team has the beer it deserves. / Tonight, let it be Lowenbrau. Lowenbrau. Here’s to good friends.