The Battalion. (College Station, Tex.) 1893-current, October 09, 1985, Image 10

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MSC Visual Arts Committee
cordially invites you to attend
the
opening
of
Why of the Warrior
an exhibition of Japanese Swords and Prints
from
R. B. Caldwell’s Private Collection
special lecture
by
Mr. R. B. Caldwell
on
Wednesday, October 9, 1985
Lecture at 7:00 pm in MSC 206
Reception following in MSC Gallery
Page 10/The Battalion/Wednesday, October 9, 1985
World and Nation
Committee
revamping
U.S. tax code
Associated Press
WASHINGTON — 1 he House
Ways and Means Committee, attack
ing the “three-martini lunch” that
many Americans view as a symbol of
an unfair tax system, is moving to re
strict business’ ability to deduct costs
of meals and entertainment.
The panel’s action, taken Monday
behind closed.doors as lobbyists for
restaurants, hotels and sports teams
waited outside, is far from final.
Some members said they expect the
issue to be raised again before the
committee finishes work on a new
tax code.
But for the moment, the commit
tee has agreed that businesses
should no longer be allowed unlim
ited deductions for costs of meals
and of entertaining clients, includ
ing sports and theater tickets.
The panel endorsed President
Reagan’s conclusion that such de
ductions are abused and unfair. But
members stopped short of accepting
the president’s proposed changes.
T he committee also went against
Reagan’s wishes on another matter.
It agreed to continue the $l-per-tax-
payer checkoff for the federal fund
that finances presidential elections.
Still awaiting the 36-member
panel are the tough issues of tax
overhaul, including how low to re
duce tax rates, how high to raise the
personal exemption, and whether to
repeal the deduction for state and
local taxes paid.
Under current law, a business
may deduct reasonable, ordinary
and necessary expenses, including
the cost of meals, if they are eaten in
a place that is conducive to a dis
cussion of business, and of costs of
entertaining clients or potential cus
tomers.
That law favors a relative few peo
ple, the White House complained in
recommending change.
House OKs
agriculture bill
Associated Press
WASHINGTON — The House
approved a 1985 farm bill Tuesday
that pins hopes for recovery of the
U.S. agricultural economy on in
creased export sales, and meantime
offers a safety net of farm income
guarantees.
I he five-year, $141 billion bill in
cludes price supports for major
crops like wheat, corn, cotton, rice
and soybeans, a new soil conserva
tion package, money for agricultural
extension and research, and new
statutory authority for food stamps
and overseas food aid.
The Senate is not scheduled to act
on its version of the bill until next
week at the earliest. Prolonged
House-Senate negotiations ap
peared likely before a final measure
can be sent to President Reagan.
In its key elements — crop price
supports and farm income subsidies
— the House bill retains the essential
structure of current farm law.
It continues to offer farmers loans
on their crops to allow them to wait
for the most advantageous time to
sell, and bolsters income through di
rect payments that make up the dif
ference between the price farmers
receive and a pre-set “tai get price.”
Rep. Arlan Stangeland, R-Minn.,
who had favored a more unortho
dox approach to solving farm eco
nomic problems, called it “a
warmed-over 1981 farm bill.”
SHOE
by Jeff MacNelf
Lowest-paid workers losing
overtime, wages, report says
Associated Press
WASHINGTON — Mam ol
America’s lowest-paid workers are
being cheated out of overtime pav
and minimum wages because the
federal government isn't enforcing
an important labor law, the General
Accounting Office savs.
The congressional watchdog
agency said in a report to a 1 louse la
bor subcommittee that the justice
and Labor departments often ignore
violations ol the Kail Labor Stan
dards Act because penalties are light
and investigators feel their time is
better spent on other projet is.
“The maximum penalty foi a first
conviction — a fine of up to $10,000
— is not considered to he severe In
Department ol Justice officials, and
because of higher priority work, jus
tice is unlikely to prosecute !• LSA vi
olations,” said the study, released
last week to the subcommittee on la
bor standards.
“Based on the low priorilv given
by Justice officials to FLSA viola
tions, Labor’s position of focusing on
civil rather than criminal remedies
appears reasonable,” it cone luded.
1 he repent surveyed i^ibor De
partment receirds in Washington as
well as lieJcl offices in Boston, Ghi-
cage>, Dallas, Atlanta. Kansas City,
and San Francisce>.
Most e>l the ailected workers ele>
piecework in the apparel industry or
are empletyed in light inanufaet ir-
ing.
1 he stuely, reejuesteel by subcont-
ntitlec chairman Austin Murphy. D-
Pa., Ie)lle»\veel upon a 1981 investiga
tion that reported non-compliance
with FLSA's minimum wage, over
time and record-keeping provisions
was a “serious and continuing prob
lem."
1 hai previous investigation also
reported that employers who vio
lated the labor I. w often went unpu
nished and th.tt the laibnt Depart
ment frequently failed to seek
maximum compensation for em-
ployees who wereduc hack wages.
The new report conclude*I that
little has changed in four years.
“Our current review showed that
most investigations were not up
dated before settlement and firms
who previously violated FLSA were
usually not In-mg monitored and it!
investigated." the report said.
Fo help correct the problem,tit
GAO recommended that govtn-j
ment prosecutors routinely sed
beats damage payments in addiuct
to back wages from emplovennit;
hieak the law.
Murphy, who is still Mudyingilu
repoit, had no comment.
Assistant Attorney General Ui
rent e Wallace responded to then !
|>oi t in a letter, saving that stillerpJ
nalties might induce ledtij
srosecutoi s to more actively pu®
USA s iolations.
“GAO may wish to recommendi
us re|H>ri to Congress an amen
ment to the Fl.SA allowing a terms
imprisonment tor convictions sit!
a re|KMt ot lender has beensubjedM
a prior tivil judgment underlie
at t\\ all.it e wrote.
As die law is now written.imp'
onment is an option onlv after a
employer's second conviction.
1 he maximum sentence
months.
U.S. Treasury juggling books
to keep government solvent
Associated Press
WASHING I ON — I he Trea
sury Department used some crea
tive bookkeeping Tuesday to
keep the government afloat while
Senate leaders spun their parlia
mentary wheels over a balanced
budget plan that has stalled ac
tion on increasing federal bor
rowing authority.
At the same time, House
Speaker Thomas IV O’Neill Jr.,
D-Mass., said Congress is in its
current f ix because of insane ad
ministration economic policies.
In what has become a daily let
ter updating Congress on the
government’s effort to keep bal
ancing itself on a fiscal precipice,
Deputy Treasury Secretary Rich
ard G. Darman told Senate Ma
jority Leader Robert Dole, R-
Kan.:
“As of this morning, we project
an ending balance for October 8
(today) of zero; and — absent re
medial action — a negative end
ing balance for October 9 (tomor
row).”
Dole said the Freasury was jug
gling its books to maintain sol
vency into Wednesday.
“We’re advised today by the
Treasury that they may be able to
avoid default until tomorrow
“As of this morning
(Tuesday), we project an
ending balance for Octo
ber S of zero; and ... a
negative ending balance
for October 9 (today), "
— Deputy Treasury Sec
retary Richard G. Damian
sometime,” he said.
So far, the only sign of the gov
ernment’s financial problems has
been the series t>l letter from the
Treasury Department to Con
gress.
But the administration has
warned Congress that continued
delay could trigger a process un
der which the Federal Reserve
System would tell hanks not to
honor government checks.
Nonetheless, of ficials have said
the government will not stop issu
ing checks.
Some legislators said the Trea
sury Department was overdoing
its warning.
“There is no calamity,” said
Sen. Steven I). Symms, R-Idaho,
adding the Treasury actionswert I
"scare tat tics.”
I he problem is that the gw-fl
eminent has reached its borrm-1
mg ceiling of $1.82-1 trillion and I
t an onl\ operate with theodif
has on hand.
I n ordei for the governmentto j
(sorrow more to meet itsobliga-|
lions, (ongirss must increaseiln|
debt limit.
1 lie Reagan administration I
has asked for a new debt limit of 1
moi e than $2 trillion.
After days of stalemate, Senate I
leaders began bargaining Tue-i
day on a plan that would allow for H
a short -term increase in the got-1
ernnienl’s borrowing authoiitvl
and allow votes on an amend-■
ment offered by Sens. PMj
Gramm, R-Texas; Warren Rtid-1
man, R-N.H.; and Ernest Hofl
lings, D-S.C.
Republicans, with Presidtnt ■
Reagan's support, have insisted N
on linking the debt limit increase 1
to the plan to impose statutonl
limits on budget deficits in order ■
to achieve a balanced budgetbrI
1991.
Democratic leaders said the I
sweeping ha la need-budget plan
being considered too hastily and I
.ire seau hing for alternatives. I
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