Clinton asks America
to embrace tough plan
WASHINGTON (AP) — Presi
dent Clinton, turning the nation to “a
new direction,” asked Americans
Wednesday night to embrace a tough
economic plan containing one of the
biggest tax increases in history to curb
massive budget deficits and finance
his efforts to revitalize the economy.
“This econom ic plan cannot please
everyone,” Clinton said told a joint
session of Congress. “If this package
is picked apart, there will have some
thing that will anger each of us. But if
it is taken as whole, it will help all of
us.”
The plan is a mixture of $246
billion in tax increases and $253 bil
lion in spending cuts over four years.
“Our budget will by 1997 cut $140
billion from the deficit—one of the
greatest real spending cuts by an
American president,” he said.
“If we do not act now,” Clinton
said, “we will not recognize this coun
try 10 years from now.”
He said the deficit would have
grown to $635 billion a year and the
national debt would consume almost
80 percent of the gross domestic prod
uct.
“Tonight the American people
know we must change,” the president
said. “But they are also likely to ask
whether we have the fortitude to make
those changes happen.”
Clinton's plan would spread pain
almost universally, although well-to
do people would be hit hardest. The
administration braced for stiff oppo
sition following a negative reaction
from Wall Street.
The program would impose higher
energy taxes on every household with
income of more than $30,000. The
-i<
If we do not act now we will not recognize this
country 10 years from now.
-Bill Clinton
President of the United States
administration calculated that would
raise $71.4 billion by 1998.
The tax would start next July at 2.5
cents a gallon for gasoline, 2.75 cents
per gallon of heating oil, and 8.75
cents per thousand cubic feet of natu
ral gas. It would increase over three
years to triple those original figures.
Income tax rates would jump signifi
cantly — from 31 percent now to 36
percent next year—for families with
taxable income over $140,000and for
individuals over $115,000. A 10 per
cent surtax which Clinton had prom
ised to impose on millionaires would
be applied to taxable income over
$250,000.
A pay freeze would be put on the 3
million federal workers for a year;
after that thev would be allowed in
creases less than the rate of inflation.
Clinton said congressional staffs
should follow suit.
Taxes would be raised on Social
Security benefits for retired couples
earning more than $32,000 and indi
viduals earning $25,000. Medicare
payroll taxes would be required on all
earnings, compared to the present
$135,000 limit
>' Clinton said he had made 150 spe
cific cuts in spending over four years
totaling $253 billion, including $76
billion in Pentagon reductions and
$91 billion from pensions and auto
matic benefit programs.
In all, the package would cut $496
billion from the expected deficit over
four years, the largest such reduction
ww
program in history.
Nevertheless, the deficitstill would
wind up in the $200 billion range by
1997 and climb higher unless health
care costs arc contained.
While cutting costs in some areas,
Clinton proposed spending increases
totaling $ 160 billion for construction
projects, education and children’s
programs, job training, expansion of
the earned income tax credit, exten
sion of unemployment compensation
and a variety of health-care programs.
Republicans denounced Clinton’s
plan as a massive round of tax hikes.
GOP lawmakers wore buttons that
said, “Tax and Spend. Again.” and
“It’s Spending, Stupid.”
Delivering the Republican re
sponse, House GOP Leader Bob
Michel said, “The American people
would do well to remember: when
you hear a Democrat call for taxes, do
not ask for whom the tax rises — it
will rise for you.”
‘Tonight the president mentioned
a number of new programs that inevi
tably will cost considerable sums of
money,” Michel said. “Laudable as
they may be, how do wc pay for
them?Thepresidcnt’sanswer is: more
taxes on everyone.”
Clinton said there “has been a lot
of talk about the deficit but very few
credible efforts to deal with it. This
plan does. We will pul in place one of
the biggest deficit reductions-and the
biggest change of federal priorities in
our history at the same lime.”
.La - ■ -.-I .... ,
Clinton's proposed tax increases
...........
iiiil
“I. Provision* that improve the fairness of th* income
■Increase tax rates paid by high-income individuals (1)...
t.Arfo fourth bracket at 36% rate for taxable Income - -r
over $140,000 (joint ratuma)* $127,860 (heeds «f
households). $115,000 (single) 1 |
2. Impose a t0% surtax on reguiw'texable income over
$250,000(not appUcaMstooaptelgains)
Tincrelse K "J&V&SBE* of lass
than $176,000 and 28% for AMH over $175,000,
increase AMTt exemption *>^^000"
^^^S^TterSed^dlction limitation and personal;
exemption phaseout scheduled to expire lor 1808 and * >
1997, respectharty.
■ Repeal Health Insurance wage base cap 29,162
■ Restate top estate tax rates at 53% and 55% (2) 2,765
« Reduce deductible portion of business meals and 16,089
entertainment from - '* * . \ f' ;
80% to 50% s a 'Jf J v * " ' f;
■ Deny deduction for dub dues 1,177
■ Deny deduction for executive pay over $1 million 646
■ Reduce compensation that can be taken into account for 3,645
purposes of benefits and contributions under qualified
retirement plans to $150,000 in 1994 (1993 cap is for
I $235,840) *
■ Disallow moving deductions for meals and real estate
expends 1.675
2 Provision affecting businesses
■ Increase corporate tax rate to 36% for taxable income
over $10 million (phase-out benefit of 34% rate be*!“^“
at $15 million) (1)
■ Deny deduction for lobbying expenses
k ■ Require securities dealers to mark-to-market (3)
■■ n—u;u * <kU At* CCl oodistanro i
i §
.•■> yi '
mcmssuft
IS increase gorputaw ««a vw
over $10 million (phase-out benefit of 34% rate beginning
at $15 million) (1)
■ Deny deduction for lobbying expenses
‘ ■ Require securities dealers to mark-to-market (3)
■ Prohitxt double-dip related to FSLIC axitttnca (4)
■ Extend corporate estimated tax rules , .
•Limit 936 oredrt to 66% of compensation , &
1 3 Provision# affecting international businesses
■ Reform foreign tax credit for oil multinationals M M J
■ Transfer pricing compliance initiaitive (enhanced penalty
i provision;
■ Royalties in
RAE allocation
■ Enhance 'earnings stopping ruies
■ Repeal deferral for excessive accumulated foreign
30,592
I; 978
4.446
1,720
4,885
7,010
1,798
3,800
iMinfogp mm __...
4 Energy provisions (5)
•Modfied8TUtax ■' ' o * ** ; / *71,443
■ Extend gasoline tax currently scheduled to expire on 7,673
Q/On/QC 4 , t s N •• ' V
wf'jyjrvo ^ v \r vi * „
5 Compliance initiatives
■Service industry non-compliance Wtiative/TIN valkfeSoh
■ Modified substantial understatement penalty 1$71
- . ♦ W •• 4 >
■ftlisceilsneous 4 W ^
TOWLTMna ' ;
...............
-WORLD WIRE
China releases prominent student leader
BEIJING (AP)—China released
the most prominent student leader
of China’s 1989 democracy move
ment and two other dissidents
Wednesday in what appeared to be
a gesture to President Clinton and
the Olympics movement.
Wang Dan, who was No. 1 on
the wanted list issued by police
after the crushing of the democracy
movement, was freed along with
another student leader, Guo
Haifeng. Zhu Hongsheng, a 76
year-old Catholic priest from
Shanghai, also was released.
The early releases came just two
weeks before a high-level delega
tion from the International Olym
pic Committee is to visit Beijing,
whose leaders have made clear their
strong desire to be host of the Sum
mer Olympic Games in 2000.
Fire kills 7 children who were left alone
DETROIT (AP)—A fire killed
seven children ages 9 and under
who were left home alone and were
trapped by bars on the windows of
their two-story wooden house
Wednesday, officials said.
The victims, all apparently re
lated, were found in one room and
apparently had pushed a dresser up
to a window in an attempt to
escape. Battalion Chief Harold
Watkins said. He said the windows
had padlocked burglar bars on
them.
The children were asphyxiated
by smoke, Fite Marshal Richard
Milliner said. The fire started in
the kitchen, said city arson investi
gator Capt. William Peck. The
cause wasn’t immediately known.
Editor In Chief
The 1993-94 editor in chief formulates editorial policy,
determines guidelines for the daily operation of the
newsroom, Hires the senior editorial staff, helps deter
mine the content of the editorial page and prepares the
editorial salary budget. Applicants must have one year
of newspaper experience, preferably at the Daily Ne
braskan, and submit clips when applying. The position
begins August 1,1993 and lasts until May 6,1994.
The position pays $975/
month (except December and
May) and reports to the UNL
Publications Board. The editor
must enroll at UNL for at least
* six credit hours during each of
the two 1993-94 semesters and
maintain a minimum 2.0 GPA.
Applications are available at
the Daily Nebraskan office,
basement of the Nebraska Un
ion, and must be returned by 3
p.m., Feb. 18,1993.
NetiraSkan
UNL does not discriminate in its academic, admissions or employment programs and
abides by all federal regulations pertaining to same.
U.N. halts most aid in Bosnia
SARAJEVO, Bosnia-Herzegovina
(AP) — Serb tanks bore down on a
key western suburb Wednesday as
U.N. officials halted aid operations
and accused Bosnia’s warring fac
tions of using food as a political
weapon.
The Serb offensive on the last de
fensive lines was an apparent attempt
to capture more of the capital before
peace talks resume Friday in New
York between Serbs, Croats and Mus
lims.
The Muslim-led government has
blocked U.N. food aid from reaching
Sarajevo, accusing of the United Na
tions of ignoring besieged Muslims in
eastern Bosnia. Convoys to the region
have been halted by ethnic Serbs.
“I really regret that I have to take
this decision because we have been
trying to help the victims, the ordi
nary people, and we cannot do that,”
Sadako Ogata, the U.N. High Com
missioner for Refugees, said in
Nairobi, Kenya, in announcing the
aid cutoff in Sarajevo and eastern
Bosnia.
The action could increase pressure
on officials in Sarajevo. If the city
began handing out food again, ware
houses would be emptied in eight to
10 days.
In eastern Bosnia, an estimated
100,000 Muslims arc trapped by Serb
sieges. The aid cutoff also will hit
some Serb-dominated towns.
Bosnian radio reported battles
throughout the republic and claimed
20 people were killed and 60 wounded
in an air raid on Muslim-held Ccrska,
an eastern town. In Kamenica, near
Cerska, Bosnian Serb authorities said
they unearthed 23 bodies from what
they called a mass grave of massacred
Serbs.
The Serbs and Muslims blamed
each other for the break in U.N. aid.
Mrs. Ogata said aid shipments
would not resume without guarantees
from all parties to safeguard and al
low passage of food convoys.
1 Soldiers say racism rampant in Army Alaska
ANCHORAGE, Alaska (AP) —
Troy Scou says he gave up living out
of an Iowa btt locker to join the US.
Army. It was love at first salute.
That was six years ago. Before he
received the Good Conduct Medal
and numerous other awards and cita
tions.
Now Scott, 28, wants out, claim
ing the sergeant made a racial remark
before firing the grenade. He and a
number of other blacks charge racism
is rampant at Fort Richardson in
Alaska.
“I’ve lost total respect for the
r
Army,” Scou said.
Staff Sgt. Rufus Dcon Bell isn’t
sure tie wants to give up his nine-year
career. But after a court-martial ac
quittal on what he deems a trumped
up bribery charge, he knows he wants
out of Alaska.
The leadership of the 6th Infantry
Division (Light), based at Fort Wain
wrighl near Fairbanks, denies allega
tions of institutional racism within
their command.
Scou, an explosives technician,
said the word Anigger” was freely
used by one of his unit leaders and that
a colonel who used to head his battal
ion once said Scott and his wife “are
„ a driver, says a former com
pany commander falsely charged him
with offering a $300 bribe in April to
a fellow non-commissioned officer
'Over a failed physical fitness test.
Bell, who was later acquitted,
maintains the charge was devised by
his company commander to free up
for one of his aides Bell’s slot for an
NCO school. The Army had no com
ment on that claim.
lull UIHA/ MIU JWII anu ill* " 1
smarter than the average eolorcd
1
Nebraskan
fnmtmrUSii ' '
at Lincoln, NE
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