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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (March 27, 1985)
Page 12/The Battalion/Monday, March 27, 1985 SHOE by Jeff MacNeiiy Committee chairman wants MOT A CHINESE. IS RE6>TAi/RaMT AGAIN... changes in tax system laws Associated Press WASHINGTON — The chair man of the House Ways and Means sday I Federal Reserve Board Words affect dollar’s value Associated Press Committee said Tuesday he is opti mistic thctt Congress will write a new tax system over the next two years so that “when people enjoy a large profit, by gosh they pay.” As his committee resumed hear ings on tax overhaul, Rep. Dan Rostenkowski, D-Ill., said the de mand for change is being fed by the growing perception that giant cor porations pay little or no tax. “That’s when the revolution comes,” he said. “In the long haul, I’m very opti mistic about getting legislation passed this Congress,” meaning by the end of 1986, Rostenkowski said. And, he added, the chief incentive will not be the lower tax rates con tained in most overhaul plans but the promise that high-income indi viduals and profitable businesses will have to pay their shares. Rostenkowski got little argument on his point that the present system is perceived as unfair. Ten members of Congress who have written seven different overhaul plans testified be fore the committee on their propo sals, and all started with the notion that existing tax law is too compli cated and unfair. But there was no unanimity on the meaning of fairness. “Hundreds of families earning over $200,000 a year legally pay no taxes at all,” said Rep. Richard Ge phardt, D-Mo. “Some even make more than a million dollars and It gaily pay no taxes.” He and Sen. Bill Bradley, D-N.J, have written a plan that would dim nate or reduce most deduction while cutting tax rates; about 70ptt cent of Americans would pay at a percent rate. On the other hand, Rep. MarkSi jander, R-Mich., complained tin the present lax system “is grosslyii efficient and cletrimental to tit economy,” at least in part becauset is based on the notion that the rid should pay a greater share of tlw earnings to the tax collector. Siljander is sponsor of a “flat Ut' — a plan that, after allowing i $2 ,000-per-person exemptiot would tax all income at 10 percent WASHINGTON — No matter what Federal Reserve Board Chairman Paul A. Volcker says, it is still news. Earlier this month, as he was about to begin a speech to a group of bankers, the television lights came on and Volcker playfully told his audience that “anything I say that’s different in nuance or tone from what I’ve been saying the past week is purely accidental.” He was acknowledging in a lighthearted way his power as an oracle-like figure whose mere words —and the way others interpret those words — can affect fi nancial markets around the world. The Federal Reserve System was set up in 1913 and functions as the nation’s central bank. It determines and conducts U.S. monetary policy and plays a major role in supervising and regulating the banking system. The Federal Open Market Committee, composed of the seven-member Federal Reserve Board of governors and the presidents of five of the 12 Federal Reserve banks, determines monetary policy but only discloses its decisions weeks after they are made and then only in murky summary. Thus, financial analysts, brokers, traders and report ers hang on Volcker’s every word during public ap pearances for clues about what the Federal Reserve might be up to. The problem is that sometimes people hear the same clue but interpret it differently. In making a semiannual report to Congress on Feb. 20, Volcker told the Senate Banking Committee, “the progressive process of easing reserve positions under taken in the latter part of 1984 ended.” Bond prices plummeted based on fears that Volcker might have been indicating the Fed was going to tighten credit. The dollar, in turn, soared on foreign currency markets. Six days later, Volcker gave essentially the same testi mony to a House banking subcommittee. Bond pricesjumped, and the dollar fell. David Jones, an economist with Aubrey G. Lanston 8c Co., a government securities dealer in New York, de scribes himself as “a Fed watcher who tries to put the Fed under a microscope to anticipate its next policy shifts.” Court says schools can’t bar vocal gay advocates Associated Press vided Supreme Court barred Okla homa >upi >uolic school boards Tuesday Broker convicted of oil swindling Associated Press HOUSTON — A commodities broker was convicted Tuesday of 17 counts in a 22-count indictment ac cusing him of carrying out a multi- million-dollar swindle 200,000 tons of oil. le involving acy to obstruct justice. As he was chained and led from the courthouse. Soudan said: “Noth ing surprises me anymore. For every injustice, there will always be a final justice.” Jurors deliberated nine hours be fore convicting Frederick Soudan, 41, of counts involving wire fraud, perjury, interstate transportation of stolen property, conspiracy to de:- fraud the United States and conspir- Prosecutors said Soudan made $4.25 million from the $56 million scheme, which they claim was part of a conspiracy to steal 1.4 million bar rels of oil from European firms and Je to South Af- secretly ship the cruc rica. Defense attorney David Berg con tended, however, that Soudan was an innocent oil broker who was duped in the deal by a “Greek Ma fia.” Berg said the real culprits in the scheme used Soudan as a funnel for their information so his name would be prominent on all the documents found by authorities. Soudan was accused of stealing 200,000 tons of oil from its Italian owner and ordering it delivered to South Africa on the tanker Salem. ■ put from firing teachers who advocate, encourage or promote homosexual- «y- . . The justices, by a 4-4 vote, upheld a federal appeals court ruling that an Oklahoma law allowing such fir ings violated teachers’ free-speech rights. Such tie votes do not set any na tional precedent, because it is possi ble that in some future case the same issue will be decided by all nine jus tices. But Tuesday’s development means the 10th U.S. Circuit Court of Appeals ruling that threw out the Oklahoma law bars any attempt to draft such a law in other states within that f ederal judicial circuit — Colorado, Kansas, New Mexico, Utah and Wyoming. The National Gay Task Force, which had challenged the Oklahoma law in a test case lawsuit against the Oklahoma City school board, called Tuesday’s ruling a key victory. Spokesman Ron Najmau in New York City said the court “has af firmed that gay men and lesbians have the same First Amendment free-speech rights as other Ameri cans.” But Larry Lewis, an attorney for the Oklahoma School Board Asso ciation, refused to admit defeat. “Of course, we’d rather win out right than get a tie,” Lewis said. “Since we didn’t have a majority on the court against us, we consider that a moral victory.” Lewis said his association would not try to salvage the invalidated law but will “begin efforts to have the law tightened by the Oklahoma Leg islature.” Justice Lewis F. Powell, who missed hearing arguments in the Oklahoma case in January because he was recuperating from prostate surgery, did not participate in decid ing the case. Commercia vd 80 r restrictions hurt Mexico Associated Press MONTERREY, Mexico - Mexico and the United State must agree on an exchange polio to avoid “a war on commercialrt strictions" that threatens tilt Mexican economy, says the head of an exporters association. Mexico’s decision to halt tht importation of certain product items from the United States it answer to the U.S. ban on citra imports from Mexico requiresim mediate talks, said Jose LuisTrt vino, president of the Monterrey based National Foreign Coni merce Gouncil’s northeast sec The Mexican government ait nounced over the weekend thati! closed the border to U.S. impore of vegetables. The United States announced in December it had again closed its border to imports of Mexicat citrus after high levels of Mexican fruit fly larvae were discoveredi: tested fruit. Apartment hunting €> „< A & ^ By 1 The Cc dinator f< at Galvest far as he 1 to everyo prialions A&M-Gal The co balanced shut dowi University Basin at C Howev Tuesday plan. Housto the motio He said I and the si by closing “It’s fis said of eh veston co lots and i nitely tinv Colbert Bu at AUST Bob Bull umversit GOT YOU,SWAMPED! Mb? If you’re bogsed down in your apartment search, don’t lose hope. Help is on the way! Now there’s Treehouse Village, a brand new community of one- and two-bedroom furnished and unfurnished apartments, including the popular two-bedroom roommate floor plan. Within walking distance to the A & M campus, Treehouse Village offers convenience and a wild assort ment of extras, including fireplaces TREEHOUSE VILLAGE- and washer/dryer connections in some units. Handicap units are available, too. And to soothe the savage in you after a beastly day of classes, relax in Treehouse Village’s two pools and hot tubs, or on the tennis, volleyball and basketball courts. Don’t settle for less. Hold out for Treehouse Village Apartments. Your haven in the apart ment jungle. APARTMENTS LEASE NOW FOR FALL 1985 Treehouse Village Apartments. From $295. For information/ visit the Treehouse Village Apartments Leasing Office at 800 Marion Pugh Blvd. College Station, Texas 77840 409/764-8892 Professionally managed by Callaway Properties. joy a $3 joyed a gravy bn Universii Afterv UT Syst which to ij theunivi “I did | out of tl told UT wanted t The j by Lt. C Sovi WASI shot by . taking p an area i observe! ta gon of Howe moved i after cc notified deter o week to . Chall cials rei [ he slayi thur D. “Wei Si NEV Was inc counts Wedne Panel < gun p youths Coe'S electro this wil Story vs or the i