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Fayetteville Northwest Arkansas Times Newspaper Archives Apr 5 1986, Page 4

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Fayetteville Northwest Arkansas Times (Newspaper) - April 5, 1986, Fayetteville, Arkansas Editorial opinion the Public interest is the first concern of this newspaper g. Daryl Henning publisher and general manager Rusty Garrett managing editor4 a saturday april 5,1986irs s big Day the internal Revenue service acknowledges that last year was its worst Ever for handling Federal income tax returns. It could hardly do otherwise. News reports told of taxpayer returns retrieved from trash barrels and restroom wastebaskets at the overwhelmed Philadelphia processing j Center and of delinquency notices incorrectly sent to Hun dress of thousands of individuals and businesses. After that fiasco which the irs blamed on computer problems and inexperienced personnel the Agency a performance this year had almost nowhere to go but up. With the april 15 filing deadline drawing near officials insist that work is proceeding smoothly at All of to regional irs service centers including the one in Philadelphia. Refunds Are averaging $733 and processing time about four weeks. But the big crunch is yet to come. As Many As half of the projected 104 million individual returns Are expected to be mailed on or shortly before april 15. The sudden Avalanche of paperwork is sure to create delays and a new wave of complaints from taxpayers waiting for refund checks. Some of the complainants May never receive what they feel is owed them. For the first time this year the irs has authority to withhold any income tax refunds due to 750,000 people who have defaulted on $1.6 billion in government Loans from five Federal agencies a the agriculture department education department department of housing and Urban development Small business administration and veterans administration. Most of the defaulters Are students or former students who have failed to repay education Loans. Gripes about refunds that Haven to arrived constitute the bulk of the queries received by the Irsos problem Resolution office. Taxpayer ombudsman Jack g. Petrie the head of the office reports it handled a record 506,000 complaints in the fiscal year that ended sept. 30, As against 377,000 the previous year. He attributes the surge in volume not Only to last years processing problems but also to the fact that publicity has made taxpayers More aware of his role As their official advocate within the irs. Looking beyond the current tax season the irs shares with other Federal agencies a certain apprehension about the future. It stems mainly of course from the Gramm Rud Man Hollings deficit reduction Law. The Agency already has Cut Back on travel and some forms of hiring and further economies Are bound to follow. But commissioner Roscoe Egger insists that the irs will not Cut Corners on processing or enforcement. A no a he told a television interviewer in february a a that a got to be no. I processing of returns and taxpayer indeed the irs could Well face an unusually difficult Challenge in 1987, provided Congress approves tax Reform legislation during its current session. The House already has passed S.C. a Bill and the Senate finance committee will resume its markup of an alternative measure when Congress returns from recess april 8. Sweeping revision of the tax code always Means More work for tax attorneys and accountants to say nothing of the irs. Richard l. Worsnop a editorial research reports would close loopholes on tax Breaks minimum tax plan proposed by Liz Visser times Washington Bureau Washington As the Senate turns its attention to wholesale changes in this country a tax code a revision president Reagan has heartily endorsed it should consider a simple plan advanced by rep. Tom Tauke of Iowa. Tauke a moderate Republican and an attorney by Trade has proposed establishing a foolproof minimum tax under which individuals and corporations who pile up exemptions credits and deductions to avoid taxes would have some of their sheltered income a a recaptured and taxed. There is already a minimum tax on the books under which individuals Are supposed to pay 20 percent of their income in Federal taxes while corporations theoretically must pay a minimum of 15 percent tax on their profits. But there Are so Many loopholes in the tax code that thousands of individuals and big corporations escape Federal taxes altogether. Tauke would change All that by slapping a minimum tax on All individuals and corporations regardless of the tax Breaks they claim. Under Tauken a plan the minimum tax rate would be 22.5 percent for individuals and 20 percent for corporations. He estimates the Treasury would gain More than $25 billion in additional letter from Washington revenues a $18 billion trom individuals and $6 billion from corporations. In addition the plan creates a a super minimum tax under which even More sheltered income would be recaptured at a rate of 2 percent if the taxpayer could somehow avoid the minimum tax. A the Bottom line is that no matter How Many tax Breaks Are claimed they must pay at least a portion of their income in taxes a Tauke says. It is this feature that makes the plan most commendable. Tauke says his plan would make unnecessary the wholesale overhaul of the tax code that the House approved late last year and which the Senate is now pondering. Such wholesale rewriting he believes would undermine . Productivity and competitiveness Cost . Jobs and might even trigger a recession. A what americans want is simpler a Tauke says. They want a tax Reform that ensures that profitable corporations and wealthy individuals Are shouldering their fair share of the tax the Senate in its deliberations on tax Reform so far appears willing to endorse a minimum tax. Members of its finance committee which drafts tax legislation have praised the concept though it remains to be seen How committed they Are to the idea. A the tax plan reluctantly passed by the House last december poses More harm than Good to the Economy a Tauke says. A the Senate on the other hand rightfully is recognizing the need for Basic fairness before Complex there is one More element in this debate that cannot be overlooked. Actions taken on Capitol Hill Are Seldom far removed from politics and Tauken a tax proposal is no exception. The fourth term congressman tried unsuccessfully to offer his minimum tax plan last december As an alternative to the House ways and Means committee version that eventually was adopted. The ways and Means Bill was adopted by a controversial voice vote which made it unnecessary for individual congressman to go on Public record As either supporting or opposing the measure. That still rankles some in the House including Tauke. Despite the setback Tauke reintroduced his minimum tax earlier this year and remains hopeful for its passage. Wallace retirement closes chapter in american politics Justice involved in coverup Washington the Justice department seems to be digging a. Ever deeper Hole for itself in the continuing controversy Over its a Tivin ties during a congressional ii vesti gation of the environmental Protection Agency a few years ago. A the departments files contain startling evidence that top officials withheld vital information that con Gress should have been Given. In fact a recent report by the House judiciary committee accuses. Justice department officials of deliberately obstructing committee in investigators who were looking into irregularities in Epars handling of hazardous waste Sites compounding the attempted cover up is attorney general Edwin Meese s delay in appointing an in dependent counsel to investigate the conduct of officials in his depart ment. The Case for appointment of an outside counsel would seem to to a Strong one inasmuch As Meese has acknowledged to the judiciary committee that some of the Justice officials Are his personal friends a a department spokesman Terry Eastland told our associates. Corky Johnson and Tony Capaccio there was no conflict of interest because Meese had not discussed the matter with the officials named by the committee. The department the Law by conducting Itaf own preliminary investigation before deciding whether to ask for a Specif counsel Eastland said. A in fact one of the officials former Deputy attorney general Edward Schmults went to College with Meese and has known him for More than 30 years. Evidence from the departments files shows that Schmults told Justice department officials to withhold certain Docu ments from the House committee even though the department had agreed to turn Over All relevant material. Most of the material withheld consisted of Handwritten notes a according to senior department officials i Schmults made the decision to withhold the Handwritten notes 2 there was a series of meetings at which the withholding was discussed a a judiciary com Mittee report states it quotes an Oft or department official As saying a Schmults was the ultimate decision another Meese acquaintance who is a target of the House investigation is former assistant attorney general Carol Dinkins committee evidence shows that a Dinkins at one Point told division officials to put All their documents on a conference room table. Then is. Dinkins instructed an employee to Mark All Handwritten notes and in the associated press in 1951, Julius and Ethel today is saturday april 5, the 95th Rosenberg were sentenced to death Day of 1986. There Are 270 Days left in following their conviction on charges the year. Of being atomic spies for the soviet today a highlight in history Union. On april 5. 1792. President George in 1964, Gen. Douglas Macarthur Washington cast his first veto reject died in Washington at the age of 84. Ting a congressional measure for a in 1975, nationalist chinese Leader portioning representatives among Chiang Kai Shek died in Taipei of a the states. Heart attack. He was 87. On this Date ten years ago the supreme court in 1614. American Indian Princess refused to review the court martial Pocahontas married English colonist conviction of former army it John Rolfe in Virginia William Calley or. For the murder of in 1621, the Mayflower sailed from 22 vietnamese civilians in 1968 at my Plymouth mass., on a return trip to Lai. Ending the Legal aftermath of England one of the most bitter chapters of the in 1887, Anne Sullivan achieved a Vietnam War Twenty five officers major breakthrough with her Blind and enlisted men were charged in Ana deaf Pupil Helen Keller by teaching her the meaning of the connection with what became known As the a my Lai massacre a six word a water As spelled out in the were actually tried and Only Calley manual alphabet. Was convicted. How time flies to years ago the razorback baseball team beat Tatj 7-6 in the Bottom of the 16th inning of a game that began at 3 45 . Saturday and concluded at 1 25 sunday a the game was called just before darkness at 7 saturday and began again at noon sunday. The 4 hour and 30 minute game was the longest Ever played by a razor Back baseball team. 50 years ago seventeen Hundred students from 116 schools in Arkansas have registered Here for the annual High school invitation meet. Hotels reported All rooms filled and a fraternity houses Are entertaining a capacity quota of students. The contests include academics agriculture and athletics. Too years ago the fiery fiend has repeated its destructive work. On saturday fire was placed in the Woods by careless ties or party 24 Miles South of Eeler . Those living in the Vicinity not being notified of the fact were much surprised sunday morning to find their fencing and Apple Trees being rapidly consumed by the devouring flames Montgomery Ala. It always seems a Little hyperbolic to say that an Era ends with a single act. But the retirement of George Corley Wallace obviously closes the Book on a fascinating chapter in american politics. In one sense the Alabama governors emotional announcement that a live climbed my last political Mountain was simply a Case of him accepting the inevitable. A recent Public opinion poll Here showed his chief rival for another term it. Gov. Bill Baxley leading Wallace three to one. The pain and disability with which he has been living since he was shot Down in 1972 has reached the Point in the last few years that it has become increasingly apparent to everyone that he was unable to function effectively As either a governor or potential candidate. As one of his longtime allies said shortly after the announcement to a packed House chamber a a in a sad but mostly in a relieved a it was not always that Way. Twenty years ago George Wallace was a politician whose extraordinary personal Force lifted him from the ugliness of race baiting regional politics to the Center of the National stage and a major role in presidential campaigns. He achieved his first prominence in 1963 standing in a the schoolhouse door trying to turn Back desegregation of the University of Alabama. A year later he won respectable shares of the vote in several democratic presidential primaries. And four years later he polled 13.5 percent of the popular vote As a third party candidate for president enough in several key states to Cost Hubert h. Humphrey the election. Germond and Witcover then even after the assassins bullets had put him into a life he enjoyed one last Hurrah in originally was perceived first and a a in a just having a Little fun with the folks a but Wallace a Success was More than a product of tactics. His real strength was his ability to voice the frustrations of the working class White voters who were the Core of his constituency a the people he liked to Call a your average citizens a the Steelworker and the taxi Driver and the moreover although his message 1976 when he carried Boston and finished a Strong third in the Massachusetts presidential primary. In the first instance his Success could be traced to his remarkable skills As a campaigner. He was a riveting speaker with a special Talent for living off the land. Although he lacked Foremost in terms of its racial element his Appeal finally went to the angers of everyone lacking Power in american society toward those in government whose decisions influenced their lives. They loved it when Wallace derided a the pointy headed intellectuals As the villains in Liberal social policies and when he ridiculed a bureaucrats in Washington who can to the resources to match the organization or advertising of his rivals he had a Genius for to -. A a a a attracting press attention by being p81 8 bicycle straight. And in an consistently outrageous. 88e of constant political protest in one of his favorite tactics was to he streets they approved when he threatened to a pop a few skulls if any demonstrators were foolish enough to confront him. But the string ran out on Wallace when Jimmy Carter Defeated him in the Florida primal in 1976. And from that Point on be was left with . Ivy i no memories of the great Days when Ethe new York huge crowds turned out to see him in Angeles times cities like Pittsburgh and Syracuse and to vote for him in Boston. If Wallace has left a Mark on National politics however it was not simply those crowds. It was the role he played in dramatizing the doubts about big government that finally played S.C. a significant part in the Rise of Ronald Reagan. George Wallace never won the presidency but he was a political player who could not be ignored. Tim Tribune Media services inc. Point out to audiences at his rallies the representatives of the National press the message obviously being that their presence confirmed the significance of his Campaign. A we Sot the time Here and the Newsweek a he would say in tones inviting hoots of derision from his followers. A we times and the and the Washington Post and the Abc and the lbs they follow me or walking through an Airport with reporters he would announce to applauding onlookers a a in be got the National press Here with me. We re going on a distorting trip. A later Back on the Campaign plane Wallace would offer an apology of sorts. A now you boys take that he would say. Congressmen use recess to visit Home districts constituents concerns Range from Gramm Rudman effects to dramatic decline in Oil revenues by Ric hard j. Maloy times Washington Bureau Washington across America congressmen Are taking the political pulse of their constituents during the easter recess and what they Are finding out reflects divergent regional concerns the following picture emerged from Telephone interviews with a score of congressmen who have been holding town meetings in their Home districts making the rounds of service clubs and having one on one chats with the voters the healthy Economy in most parts of the nation has put the voters in a Good mood and they tend to lie More concerned about parochial local matters than about S.C. issues As Contra Aid and tax Reform voters Are starting to recognize that draconian budget cuts mandated by the Gramm Rudman deficit reduction Bill Are going to affect them personally and lower the Quality of life i their communities the ailing agricultural Economy is of Paramount importance in Trier farm Belt states of the upper Midwest but is of Little concern elsewhere a generally people Are in a pretty Good mood a said rep. Bill Emerson who represents the Boot Heel area of Missouri. Quot they Are pretty Emerson did detect a very serious interest in the burgeoning Federal budget deficit Ana a a nervousness about How individuals and Community services will be affected when automatic spending cuts mandated by the Gramm Rudman Bill Are triggered this fall As he toured the second congressional District in the Southeast Corner of Michigan rep. Carl Pursell a Republican said he found constituents satisfied with an Economy a that s in pretty Good shape a it was a far cry from what he found a few years ago when the recession devastated the Economy of Michigan and other Industrial states according to Pursell. Few seemed concerned with Central America and the raging Washington debate Over arms Aid to the contras trying to overthrow the marxist government of Nicaragua said Pursell. Nor did he get quizzed much about air strikes against Libya most told Pursell they Felt the presidents actions were justified. It was a different Story in the depressed congressional District around Gary ind., represented by freshman Democrat Peter j. Visclosky there is no Prosperity in that steel making area with an average 9.8 jobless rate and he found local attention riveted on jobs and other economic concerns S.C. As import Competition Gary voters fear budget cutting will jeopardize programs they depend on S.C. As Job training Revenue sharing economic development and de i action according to Visclosky. Foreign Trade and import Competition was also a top concern in Democrat Alan Mollohan a Industrial West Virginia District where steel and Coal provide the jobs. In town meetings Mollohan found people blaming president Reagan a free Trade philosophy for the plight of the steel Industry. Mandatory budget cuts which will affect Federal programs that Benefit them Are also a concern in Mollohan s District. A was people appreciate what Gramm Rudman Means they re becoming worried a he said. Regional matters were found to be of great concern by Many congressmen for rep. Wes Watkins d-okla., the slumping Price of Oil was All he heard about As he toured his Oil producing think the Oil Patch is becoming anti Reagan a he said. Oilmen want the administration to impose a tax on Oil imports which would have the effect of jacking up Domestic Oil prices. But Reagan says no to an Oil import tax. In the Northern California District of Democrat Doug Bosco Federal place them in separate files. These files were a red flagged and withheld from the committee. Is. Dinkins and Schmults could not be reached for comment. To make a convincing show of complying with the Promise to produce All relevant documents Justice officials gave the committee a few of the Handwritten notes. Eventually the committee caught Wise and demanded the rest of the notes which it finally received some 18 months after its initial request. Some of the material held Back the longest was political dynamite. It showed that a Justice department employee was sent Over to Check Federal election commission records on Campaign contributions to two Epa critics reps John dinged d-mich., and Mike Synard Ola no information was obtained on Synar but the names of dog eds a contributors were matched against a list of companies in his District that generate hazardous wastes the departments implication was that dinged was badgering Epa for information which he would then turn Over to the companies who had contributed to his Campaign. The Handwritten documents contain S.C. abbreviated notes As these a every member of Congress could get records Aryl could turn them Over to contributors with impunity a dinged cd. Check his Pac Eon trips a. A a he a protecting and a give this information on dinged to i or More reporters. Put spin on it that it jeopardizes Law fleecing veterans conscience less con artists in the West and Midwest Are preying on hard up veterans some of them terminally ill who find they can to meet Tri monthly payments on their gov eminent insured mortgages. Some vets have wound up thousands 41 dollars deeper in Dent and at least one lost his Home As a result of the be swindle. According to Robert Hinckey. Assistant inspector general at to veterans administration the Cost men Check newspaper want ads far veterans trying to sell their Homes. They then offer to take Over the Mon. Vav Lune. V Viz Cliv drilling Gage payments if the vet moves out were of great concern. Bosco was also one of the few pulse taking congressman to report the voters upset about arms Aid to the contras. In the farm Belt it was the agricultural crisis that preoccupied voters visited by rep Jim Lightfoot a Iowa Ana rep Tim Penny a Minn. Everything from the credit crunch to the Impact of last years farm bid was discussed with them. Southern growers Are not hurting like their Brothers in the upper Midwest but rep. Robin Tallon d-s.c., found Farmers in the Eastern Corner of his state know they face cuts of 20 to 25 percent in farm support programs because of the Gramm Rudman Law and they Are concerned. To accommodate renters. In some cases the con men even offer to share the rental profits with the Veteran. The swindler collects the rent but never makes the mortgage pay ments. By the time the Bank forecloses the Crook has skipped out. The scam known As equity skim Ming first surfaced in the los Angeles area and has spread us Seattle Salt Lake City Denver Houston and Minneapolis. The Justice department expects its first indictment in a couple of months. Meanwhile Hincken urges Veteran to Contact their nearest a office to fore signing any a Quick fix Finan Cial agreements involving their Homes in i a. Untied future synodical inc

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