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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Oct. 1, 1990)
N ews u ige st gfes*-. Congress forges last-minute compromise WASHINGTON - President Bush and congressional leaders on Sunday forged a $500-billion, five-year compromise package of tax increases and spending cuts, spurring Congress to quick action on a stopgap spending measure needed to avoid slashes in federal services Monday. The House approved the tempo rary financing bill just three hours after the budget agreement was de scribed by President Bush in a Rose Garden announcement, and the Sen ate quickly followed. “It is balanced, it is fair, and in my view it is what the United States of America needs at this point in its history,” Bush said in announcing an agreement that concluded budget negotiations that began in May. The package contained $134 bil lion in new tax revenues, including new taxes on gasoline, cigarettes, alcohol and luxury items. Medicare costs for the elderly and disabled were increased; defense spending was slashed as well. On a 38241 vote, the House passed \ what is called a continuing appropria tions resolution to keep the govern ment operating at full speed through next Friday while lawmakers weight the proposed budget compromise. The resolution, sent quickly to the Senate, also includes $2 billion in new appropriations for the Desert Shield operations in the Persian Gulf. House Speaker Thomas Foley, D Wash., praised the compromise, but agreed with Senate Democratic leader George Mitchell of Maine, who said “Now comes the hard part,” in push ing it past special interest groups and through Congress. The compromise would shear $40 billion off the deficit expected for the new fiscal year. Without action, the 1991 shortfall was projected to hit $294 billion, $73 billion higher than the previous federal record for red ink and almost triple the shortfall the administration said it anticipated in January. White House budget director Rich ard Damian attributed die higher deficit projection to the deteriorating econ omy and growing projections ol the --- IF YOU'VE GOT MONEY TO BURN, DON'T BOTHER TO READ THIS Hut If You Need Extra Money! Donate For Dollars! This coupon is worth $20.00 for new donors on your first and second donation within six days or if you have not returned within two months. Present this coupon and earn extra cash. F or more information call the friendliest staff in town. Call 474-2335 today for more details! Lincoln Donor Center 126 N. 14th For students, Freshmen through Graduate levels, FirsTier Bank Lincoln can meet your credit needs with three attractive Student Loan Programs: Stafford Program —Guaranteed Student Loan PLUS — Parent Loan Program SLS — Supplementary Loan for Students Take advantage of our quick processing and fast turnaround. Apply today — downtown at 13th & M Street. Or phone 434-1527 for more information. ^ FirsTier Bank Lincoln Firs Ter Bank. N A., Lincoln, Member FDIC What the compromise means to taxpayers: • Taxes on gasoline and die sel fuel would more than double. The current 9-cent levy would increase by 5 cents a gallon on Dec. 1, and another 5 cents next July. • The federal tax on ciga rettes, now 16 cents a pack, would rise 4 cents a pack on Jan. 1, and another 4 cents in 1993. • Medicare taxes and fees would increase, while benefits go down. Medicare patients would pay more of their doctor bills. The annual deductible would double from $75 to $150; cover age for clinical testing would drop from full to 80 percent; and monthly premiums would rise from $28.60 to about $34 next year. State employees who currently don t pay the Medicare tax or Social Security would be brought into the system. • Buyers of new cars, boats, jewelry and furs would pay a na tional sales tax on luxury goods The fee would be 10 percent on the portion of car purchases above $30,000, boats and yachts above $100,000, and jewelry and furs above $5,000. • Most individuals or families with in excess of $100,000 would pay more income taxes, with the government disallowing 3 per cent of itemized deductions ! Medical expenses or investment ' interest would not count. • Taxes on beer, wine and other alcoholic beverages would rise. While taxpayers would be shelling out more money, gov ernment spending would be cut back in many areas. • Farm support programs would be cut $12 billion over five years. • Providers of Medicare serv ices would be forced to absorb a portion of rising costs equal to roughly $32 billion over the next five years. I costs of rescuing the savings and loan industry. With congressional leaders at his side, Bush said “I do not welcome” the tax increases - which he opposed during his ll)X8 election campaign. But he said they were needed to help the country’s economy, and he said he would join in a bipartisan effort to get the package enacted by Oct. 19. “I will do everything 1 can to generate support from the American people for this compromise,” he saul. The components of the final budget compromise was a delicate political balance between tax increases Demo crats sought and spending cuts Re publicans favored. Nebraskan Editor Eric Planner 472- 1766 Managing Editor Victoria Ayotte Assoc News Editors Darcie Wiegert Diane Brayton Editorial Page Editor Lisa Donovan Wire Editor Jana Pedersen Copy Desk Editor Emily Rosenbaum Sports Editor Darran Fowler Night News Editors Matt Herek Chuck Green Art Director Brian Shelllto Writing Coach Amy Edwards General Manager Dan Shattll Production Manager Katherine Policky Advertising Manager Loren Melrose Sales Manager Todd Sears Publications Board Chairman Bill Vobe|da 436-9993 Professional Adviser Don Walton 473- 7301 The Daily Nebraskan(USPS 144 080) is published by the UNL Publications Board. Ne braska Union 34, 1400 R St, Lincoln, NE, Monday through Friday during the academic year; weekly during summer sessions Readers are encouraged to submit story ideas and comments to the Daily Nebraskan by phoning 472-1763 between 9am and 5 p m Monday through Friday The public also has access to the Publications Board For information, contact Bill Vobejda, 436 9993 Subscription price is $45 for one year Postmaster Send address changes to the Daily Nebraskan, Nebraska Union 34,1400 R St .Lincoln, NE 68588 0448 Second class postage paid at Lincoln. NE ALL MATERIAL COPYRIGHT 1990 DAILY NEBRASKAN I Saddam urges negotiations Saddam Hussein adopted a more conciliatory stance Sunday in the nearly 2-month-old Persian Gulf crisis, urging peaceful dialogue in stead of “threats and warnings.” In a message broadcast on Iraqi TV and radio, Saddam also said he no longer opposed the involvement of foreign powers in the search for a settlement to the crisis, which was touched off by Iraq’s Aug. 2 invasion of Kuwait. The Iraqi leader’s latest message came as world leaders meeting at the United Nations moved to shore up diplomatic efforts against Iraq He said foreign countries could help in solving the crisis. But he again linked any solution to Israel’s withdrawal from the occupied Gaza Strip and West Bank, and the pullout of Syrian forces from Lebanon. Saddam said he wanted to launch a dialogue with France to explore the possibility of using French President Francois Mitterrand’s ideas on the gulf crisis as the basis for a settlement. In a speech Sept. 24 before the U.N. General Assembly, Mitterrand suggested settling the conflict over Kuwait together with other prob lems in the region, including the Israeli occupation of Arab territories and the Lebanese civil war. I jsetworkV-^ Catalog! h*-***™-*^ - *- •■ smt- - <** ccin'tS nuJ<££«) liALliL^ Factory Outlet —_ _ Reg. Price $2999 Excel Rebote -$5QO I STANDARD FEATURES • VOfl 800 x 400 • 40 Meg Hard Drive • 144 Floppy Drive • 2 Meg Memory • n lbs • 3 Hoar Botterv mm ®(? 640 x 480 VGA Resolution at Neat Moron hromr Price*! 9G