^I grtkTiTr fl "l *a O Associated Press
1^ C W Si L/ 11 CSV Edited by Jana Pedersen
Netfraskan
Editor Eric Planner Graphics Editor John Bruce
472-1766 Photo Chief Al Schaben
Managing Editor Victoria Ayotte Night News Editors Matt Herek
Assoc. News Editors Darcle Wlegert Chuck Green
Diane Brayton Art Director Brian Shellito
Editorial Page Editor Lisa Donovan General Manager Dan Shattll
Wire Editor Jana Pedersen Professional Adviser Don Walton
Copy Desk Editor Emily Rosenbaum 473-7301
The Daily Nebraskan(USPS 144-080) is published by the UNI. 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 9 a.m. 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
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Bush says he’ll trade tax hike
for cut in capital gains rate
WASHINGTON - President Bush
said Thursday he could trade a mod
est increase in taxes on affluent
Americans for a deep cut in capital
gains rates but that it was “a waste of
time” to try to push such a deal through
a divided Congress.
Instead, Bush called on lawmak
ers to put aside that battle and come
up with a $500-billion deficit-reduc
tion plan that contains neither ele
ment.
Within hours, Democrats on the
House Ways and Means Committee
said they were well into writing an
alternative budget that wou Id not only
raise taxes on rich Americans but
push them higher than Bush has said
he can accept.
The committee’s chairman, Dan
Rostenkowski of Illinois, said the
changes would “restore fairness to
our tax system.” He said the Demo
crats would meet again today to de
cide whether the package will also
reduce the capital gains tax rale, but if
it does “it’ll be a lot less rich” than the
administration’s version.
Congressional committees are
working toward the goal of finding a
half-trillion dollars in spending cuts
and tax increases before the Oct. 19
deadline when the latest emergency
spending authorization expires.
By most accounts, higher Medi
care premiums and taxes on alcohol,
cigarettes and gasoline are likely to
be included.
“We believe we have made prog
ress,” Senate Democratic Leader
George Mitchell said after a meeting
with Republican Leader Bob Dole
and members of the Finance Com
mittee.
Trying to end two days of confu
sion surrounding the president’s posi
tion on taxes, the White House laid
out — but said it wouldn’t push — a
plan that would combine higher taxes
on the 500,000 or so wealthiest
Americans with lower capital gains
rates for people who profit from sales
of stocks, real estate and other invest
ments.
Bush, trying to put the pressure on
lawmakers, said, “The meter is run
ning, but look, I can’t dictate to
Congress.”
His hypothetical package would
increase the lop rate on the highest
incomc people from 28 percent to 31
percent, ease the top rate from 33
percent to 31 percent for some 4.5
million slightly less well-to-do tax
payers and chop the rate on capital
gains from 28 percent to 15 percent.
That would do away with the
"bubble” in the lax code, under w hich
some upper middle-income taxpay
ers now pay a higher rate than the
wealthiest.
The president presented his case in
three separate White House meetings
on Thursday with House Republi
cans.
House rejects NEA restrictions
WASHINGTON - The House on
Thursday rebuffed conservative
demands for strict new obscenity curbs
on the National Endowment for the
Arts. Representatives also voted over
whelmingly to let the courts decide
whether federally subsidized arts
projects arc obscene.
After an emotional five-hour de
bate, the House approved a bipartisan
compromise sponsored by Reps. Pal
Williams, D-Mont., and E. Thomas
Coleman, R-Mo., that would penal
ize grant recipients if they arc subse
quently convicted of violating ob
scenity laws.
Passage of the Williams-Coleman
measure on a 38242 roll call vote
signaled a major reversal of congres
sional sentiment on the politically
explosive issue of federal support for
art that some lawmakers consider
offensive.
A year ago, in the heat of a contro
versy over support for exhibitions of
works by photographer Robert Map
plethorpe and artist Andres Serrano,
Congress approved explicit anti-ob
scenity restrictions on the endowment
at the urging of Sen. Jesse Helms, R
N.C.
On Thursday, the House rejected
even more stringent curbs proposed
by Rep. Dana Rohrabachcr, R-C'alif.,
and overwhelmingly defeated a sepa
rate proposal to abolish the S171 million
federal arts agency altogether.
Like a similar measure awaiting
Senate floor action, the House bill
would scrap the current Helms re
strictions on the endowment and rely
on the courts to make determinations
of obscenity.
The House bill also would renew
the endowment’s statutory authority
for three years and order reforms in
its grant-making procedures.
At the request of Republican ne
gotiators, the bill provides an increase
in the share of grants allocated to
state arts agencies from 20 percent to
35 percent over three years.
The House planned to vote today
on a separate appropriations bill that
would boost the endowment’s budget
from $171 million to $180 million in
the current fiscal year.
That bill, approved by the House 1
Appropriations Committee, omits any
content restrictions on works subsi
dized by the endowment. It also would
order endowment chairman John E.
Frohnmayer to scrap a controversial
requirement that grant recipients sign
an anti-obscenity pledge before they
can receive federal money.
Jews end festival
with celebration
at Western Wall
JERUSALEM - Thousands of Jews
celebrated the end of the Sukkot fes
tival Thursday at the Western Wall,
answering a government call to assert
control over Judaism’s holiest site
after bloody riots on Temple Mount.
Ultra-orthodox Jews carrying sacred
Torah scrolls slood side by side with
less observant countrymen waving
Israeli flags in the cobblestone pla/a
in front of the wall.
Security was tight around the wall
and the adjacent Temple Mount. On
Monday, 19 Palestinians were killed
and 140 wounded when police fired
at rioters stoning Jewish worshipers
at the site.
Hundreds of riot police, backed by
soldiers, were deployed nearby. At
the gates to Jerusalem ’ s Old City, riot
police frisked Palestinians, and some
of them were turned away.
In New York City, meanwhile, the
U.N. Security Council held consulta
tions to end the stalemate over criti
cism of the violence in Jerusalem.
But a vole wasn ’ t expected Thursday.
Earlier Thursday, police battled
Palestinian protesters in several Jerusa
- lem neighborhoods.
Police fired tear gas and rubber
bullets to disperse about 300 Pales
tinians who tried to march from the
city’s Shuafat refugee camp to a major
thoroughfare used by many Israelis.
Clashes were also reported in cast
Jerusalem.
Police fired tear gas to break up a
march by about 150 Palestinians to
the Temple Mount. “World, listen to
us! We arc people who will never
submit!” the marchers chanted be
fore being blocked by police from
entering the compound.
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