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14362 EXTENSIONS OF REMARKS June 2, 1983 EXTENSIONS OF REMARKS PROTECTIONISM IS ESSENTIAL Agreement on Tariffs and Trade vl.;u.1•4..: d into free trade unions, and the play of democrat­ HON. MARCY KAPTUR what amounts to three cartels-the Ameri­ ic politics led to similar, costly solutions to OF OHIO can, the European, and the Japanese-that the dilemmas posed by industrial capitalism. IN THE HOUSE OF REPRESENTATIVES coordinate among themselves through price Now, however, the quasi-market newcom­ and quantity agreements. ers have captured a fifth of the world's Thursday, June 2, 1983 F~fty developing countries, as well as manufacturing export markets, and they e Ms. KAPTUR. Mr. Speaker, in my Canada and Australia, manage automobile have become the price setters in a growing district, the Ninth District in Ohio, trade through "local content" rules-which range of activities. In these circmnstances, the unemployment rate in March 1983 require a specified portion of local produc­ adjustment becomes more generalized, tion as a condition of importing-while the rapid, and painful. In fact, it isn't even pos­ was 15.3 percent, up from the Febru­ Atlantic nations limit the number of cars sible. ary 1983 level of 13.9 percent. While that can be imported. Would we be able to "adjust" wages to an the economy may be improving na­ "Voluntary restrictions'" are also prolifer­ international standard? A classical law of ec­ tionwide, the economy in my district is ating in consumer goods. Power stations, onomics says that if both goods and indus­ definitely not. Thus, the message in jetliners, telecommunication, and most mili­ trial capital can move freely in the world we the following article, which appeared tary hardware are restricted via national get, in effect, a single world labor market, in the Toledo Blade, on May 29, 1983, procurement ("buy American") rules and even without a single worker crossing a is particularly meaningful for my con­ local-content deals. frontier. stituents. I commend this article to Atop of all this, we are seeing more But for as long ahead as we can see, the export-targeted industrial policies, export free international market "price" for the attention of my colleagues. subsidies, and restraint on imports via labor-given the tremendous labor surpluses PROTECTIONISM IS ESSENTIAL FOR TRADING safety and other regulations. in the world-is around a level of bare sub­ HARMONY Nevertheless, it remains fashionable to sistence. trumpet the free-trade ideal. The result is But no cut in real wages could go deep Like most people, I used to believe that not merely hypocrisy, a plentiful interna­ enough to make rich-country workers com­ free trade helped create prosperity and tional commodity with which we have all petitive again. These workers live in a high­ peace and that protectionism betrayed con­ learned to live rather nicely. cost economy requiring dollar wages 10 sumers to special interests while leading to The more serious consequence is that pro­ times as high as the Philippines merely to international conflict. tectionism is practiced in ways producing survive. I now believe protectionism is essential for minimum benefits to domestic industry, Free traders would argue that the dilem­ prosperity within nations and harmony maximum disruption in trade flows, and ma does not exist. Among Reaganites and among nations. Competition among firms is constant bickering among trading partners. "Atari" Democrats alike, there are some a good thing, but competition among soci· Without realizing the enormity of what who would abandon traditional manufac­ eties is dangerous. they are saying, otherwise sensible people in tured goods and concentrate on high-tech The problem with free trade is simple: effect are calling for slashing wages enough 1 activities. The world has an endless supply of subsist­ to compete with workers in a South Korea Implicitly, this is an argument for re-cre­ ence-wage labor, and we have learned how or Mexico, lowering health, pollution, and ating, at a higher level, the kind of techni­ to make both basic and sophisticated goods other protections to reduce business costs cal monopoly which the advanced nations in poor countries. and other similar measures. only recently enjoyed in virtually all manu­ Without trade barriers, rich countries are This would be tantamount to giving up, as facturing. In these sheltered, high-value in­ bound to suck in cheap imports from low­ dustries, the argument goes, high wages will wage countries, destroying the domestic in­ a society, the freedom and to pursue our basic values. In fact, free trade continue to be paid, while the whole econo­ dustries that used to make those products. probably would lead to dramatic economic my enjoys the benefits of cheaper imports. Unrestricted trade eventually would de­ disruption and would create large numbers The argument is wrongheaded. Markets stroy the economies of all the high-wage, of econmnically useless people. It might for bioengineered pharmaceuticals, semicon­ developed countries. take a police state to enforce it. ductors, or satellites will provide new jobs, What we really need is not free trade How can such dire consequences flow but not nearly enough for the people

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. June 2, 1983 EXTENSIONS OF REMARKS 14363 vanced countries makes complicated things, and panic protectionism later. This would to name Lita DiVita as our monthly recipi­ such as machines or computers. make it easier for Japan to adjust its invest­ ent of the Raymond McDonald Community In fact, with the state-of-the-art capital ment strategies and it would provide greater Achievement Award. equipment now available to them, the best incentives for American firms to engage in Her early years were spent in the section workers in the Third World, who make up risky investments at home. of Chicago called "Little Italy." She grad­ its industrial work force, can easily outper­ The same applies to developing countries. uated from Pickard Elementary and Harri­ form the least educated persons in advanced The World Bank and others who urge an in­ son High Schools and furthered her educa­ countries who are their competitors. creasing number of countries to follow an tion at Crane College majoring in psycholo­ On top of this, advances in production export-led growth strategy are giving cruel gy. Her family includes her husband, Fosco, technology, notably automation, are rapidly and irresponsible advice. Production capac­ a project engineer for the International reducing the need for craft-type skills, leav­ ities are built up with scarce resources, Harvester Co. and two sons, Robert and ing unskilled workers at one end and techni­ which then stand idle when the West, inevi­ Glenn. The DiVita's live in Garfield Ridge. cians' jobs at the other, with little in be­ tably, slaps on restrictions. Yet, we have Her interest in the school situation began tween. lent huge amounts of money on the promise at Byrne, where she served as vice presi­ Sophisticated engineering products such of markets. The ability of developing coun­ dent, secretary and social chairman of the as ships, airplanes, and machine tools, as tries to earn foreign exchange remains cru­ Parents-Teachers Club. Her involvement well as steel and chemicals, are now being cial. became more intense with each passing exported from developing

11-059 0-87-12 (Pt. 11) 14368 EXTENSIONS OF REMARKS June 2, 1983 PICTURES OF HUNGER TRENDS IN FOREIGN AID World, outside the Middle East, supplies us Secretary of State George Shultz recently with oil and sends us bauxite, manganese, HON. DAVID E. BONIOR remarked that the total cost of all our mili­ cobalt, and other necessary minerals. tary and economic aid programs in develop­ Fifth, our support for multilateral lending OF MICHIGAN ing countries is $44 per American citizen, agencies has flagged. Americans are divided IN THE HOUSE OF REPRESENTATIVES but, by contrast, each citizen spends $104 on the future of the programs administered Thursday, June 2, 1983 per year for televisions and radios. Al­ by the World Bank, the International Mon­ though today's foreign aid spending is 0.2 etary Fund, and other such agencies. We e Mr. BONIOR of Michigan. Mr. percent of the gross national product, com­ were instrumental in creating these institu­ Speaker, on Friday, May 27, I held a pared to 3 percent in 1949, the current tions and have played a central role in their hearing in my district, at the invita­ $16.4-billion package for fiscal years 1983 evolution, but early in 1982 the United tion of the Macomb County Fair Fed­

The taxpayer must have a written plan sold at a gain. the amount of gain which would be ordi­ for these transfers under which there will Under the bill, corporations would be en­ nary income if the property were sold. be diversity in the distribution of the equip­ couraged to give specific types of property Thus, in the case of inventory, the taxpay­ ment on a geographical basis and on the to qualifying organizations for educational er's deduction is reduced by the full amount basis of the relative economic status of the use. Under new Internal Revenue Code sec­ of the value in excess of basis, so that the students of the recipient; tion 174A, contributions of qualified com­ deduction is limited to basis. For example, if <6) At least 80 percent of the use of the puter equipment to pre-college schools and the maker of a microscope with a value of property must be in the direct education of certain other organizations which use the $800 and a basis of $200 gives the micro­ students or teachers; equipment for educational purposes, would scope to a college for its biology classes, the <7> The recipient may not dispose of the qualify for a deduction equal to the fair taxpayer is limited in its deduction to $200. property in exchange for other property or 14374 EXTENSIONS OF REMARKS June 2, 1983 services during the ACRS life of the proper­ the case of computer software which must of the taxpayer's taxable income, computed ty; have a retail value of at least $250, or in the in the same manner as the limitation under (8) The taxpayer must provide sufficient case of replacement parts); section 170, and without regard to any de­ orientation to make at least one employee <9) In the case of used scientific equip­ duction under this provision, less the tax­ of the recipient per data processor trans­ ment, the property must be functional and payer's total deductions under section 170. ferred proficient in the operation of the ready to use in the condition in which it is Amounts exceeding this limit may be car­ equipment. This must be provided at no cost transferred, without the incurrence of any ried forward in the same manner as a deduc­ to the recipient or its employees; cost of the recipient for repairs or recondi­ tion under section 170. (9) The transfer must be made through tioning. Second, in the case of a transfer of quali­ the governing body (e.g., school board) of In the case of transfers of qualified com­ fying computer equipment property or the recipient; puter equipment property or qualified scien­ qualifying scientific property . the taxpayer statement to the taxpayer, under penalties fied services may also be given. For this pur­ may take into account, for purposes of this of perjury, representing that the property pose, "qualified services" means any stand­ provision, up to the number of units of will be used and disposed of in accordance ard contract for maintenance, repairs, or property transferred equal to 20 percent of with requirements (6) and <7>; in the case of similar services normally made available by the number of units of the same type of software, the statement must represent that the taxpayer to customers in connection property which the taxpayer sells in the or­ the softwear is compatible with data proces­ with the sale of such property, which con­ dinary course of its business during the tax­ sors of the recipient and that it is suitable tract is transferred to the recipient in con­ able year. Thus, for example, if a taxpayer for the educational programs of the recipi­ nection with the transfer of qualified prop­ sells 500 units of a particular mass spec­ ent; and, in the case of ancillary computer erty. trometer during a taxable year, it may take equipment, the statement must represent Amount of Deduction.-The amount of into account no more than 100 of such spec­ that it is compatible with data processors the deduction for qualifying transfers de­ being transferred by the taxpayer or al­ trometers transferred to qualifying institu­ pends upon whether the property trans­ tions of higher education during that tax­ ready owned by the recipient. ferred is new inventory or used scientific This provision will apply to transfers of able year, for purposes of this provision. equipment. This limitation prevents the transfer of qualified computer equipment during the 5- In the case of new inventory, the amount year period beginning on the date of enact­ property which the taxpayer is unable to of the deduction allowed is the fair market sell from qualifying for the treatment of ment. value of the property, limited to the lesser Scientific Equipment for Higher Educa­ this provision. of ( 1) the taxpayer's basis in the property Clearinghouse for Used Scientific Equip­ tion.-The second category of equipment plus one-half of the taxpayer's markup or donation which will qualify for the excep­ ment.-Finally, in order to assist institutions (2) twice the taxpayer's basis. For example, of higher education locate potential sources tion to the general rule limiting deductions assume the taxpayer contributes qualifying to basis is for transfers of qualified scientif­ of used scientific equipment which the property with a basis of $400, and that the school needs for qualifying uses, the Nation­ ic equipment to institutions of higher edu­ taxpayer's markup on the property is $600, cation. This provision applies to transfers of al Technical Information Service of the De­ so that the value of the property is $1,000. partment of Commerce is to establish and scientific or technical equipment Cor re­ In this case, the allowable deduction is $700 placement parts therefor) which is invento­ administer a clearinghouse for used scientif­ which is the basis plus one-half of the ic equipment. ry of the taxpayer, or which is used in the markup C$400 plus $300), and which is less taxpayer's trade or business the fair fied research expenses for the three years computer and information services; science market value of the services or <2> 150 per­ preceding the current year. Qualified re­ technology; engineering and engineering-re­ cent of the taxpayer's direct costs incurred search expenses include both research lated technologies; precision production in providing the services. which the taxpayer performs on its own ac­ drafting; and precision metal work; Finally, in the case of computer software, count and research for which it contracts (5) The recipient may not dispose of the the allowable deduction is, in the case of

• 0 June 2, 1983 EXTENSIONS OF REMARKS 14375 basic research is for the advancement of sci­ tracts for basic research or scientific educa­ For more than one-third of a century, the entific knowledge, not having a specific tion has imposed martial commercial objective. 174A) by universities or other qualified re­ law on the Taiwanese. As a result, according In order to remove this impediment, and search organizations described above. to a recent State Department human rights thus encourage more payments to universi­ Exclusion from gross income of certain report, during this period fundamental ties for basic research, this bill eliminates scholarships, grants, or loan forgiveness human rights have been and still are being such payments from the computation of denied in Taiwan, such as the following: base period research expenses. This can be New section 117 A is added to the Code to The right to strike: "Walkouts and strikes illustrated using an example comparing cur­ provide for the tax treatment of amounts are prohibited under martial law. Collective rent law to the provisions of this bill. received by graduate students in mathemat­ bargaining, although provided for by legisla­ ics, the physical or biological/biomedical sci­ tion, does not exist." ences, computer science, or engineering, in Freedom of speech: "Persons who speak Current the form of scholarships, grants, or loan for­ law This bill favorably of communism or the People's Re­ giveness. Such amounts will be excluded public of China, or persons (3), and be exempt from tax under Professor Chen Wen-chen of Carnegie­ section 50l; it must be organized and op­ rights situation on Taiwan, for his de­ Mellon University was tortured to death on erated primarily to conduct scientific re­ nunciation of the recent violence on account of KMT spy reports from the search; and it must not be a private founda­ Taiwan, and I commend to my col­ United States. In fact, the Taipei authori­ tion. leagues his thoughtful remarks. ties' violent treatment of prisoners has been This bill adds a new category of organiza­ They are printed below. well documented by international human tion, payments to which will qualify as con­ MARTIAL LAW MUST END IN TAIWAN FOR THE rights organizations: gasoline being forced tract research expenses for purposes of the SAKE OF PEACE down the nostrils, hanging by the feet, nee­ R&D credit. Under the bill, in order to qual­ dles inserted underneath fingernails, electri­ ify as such an organization, it must be de­ <3> or <6) and be Formosan Association for Public Affairs) For these and other reasons, the most popu­ exempt from tax under section 50l; it Today marks the 34th anniversary of the lar writer in Taiwan, Mr. Li Ao, recently must be organized and operated primarily to declaration of martial law on Taiwan. The called the KMT a party of violence. promote scientific research or scientific edu­ Formosan Association for Public Affairs The "Universal Declaration of Human cation by universities of other organizations joins our friends in Congress in Rights" clearly proclaims that "it is essen­ which qualify under current law; and, it urging the Taiwan authorities to end mar­ tial, if man is not to be compelled to have must expend, on a current basis, substan­ tial law and to restore political and human recourse, as a last resort, to rebellion tially all of its funds, through grants or con- rights to all the people on Taiwan. against tyranny and oppression, that 14376 EXTENSIONS OF REMARKS June 2, 1983 human rights should be protected by the compositions published. During the makes the VOA and Radio Free Europe cor­ rule of law ... ."Taiwanese society is being period of her service in Trenton, she respondents propagandists. Obviously, these forced to defend itself against KMT tyran­ also established the Helene Fuld Pre­ hacks aren't decent enough to cover the ny and oppression. The intensified KMT hearings, speeches and votes of our luminar­ suppression of legitimate political aspira­ paratory Nursing School, which was ies on Capitol Hill. tions for democracy and KMT deprivation one of the first of its type in this coun­ That at least is the official position of the of basic human rights in Taiwan through try. After living and working in Tren­ Washington press corps, represented by the martial law measures have frustrated the ton, she moved to Morristown where Standing Committees of Correspondents, people's hope for freedom and democracy. she founded the Villa Walsh Academy. which decide who gets official accreditation. Once this hope is dashed, people have no Sister Elizabeth has also traveled The Standing Committee is composed of other way but to turn to resistence. The throughout the world and she lived in journalists elected by the Capitol Hill press danger of meeting KMT violence with Israel for 5 years, where she helped to corp, incidentally including the valiant re­ counter-violence is real. Such a trend is cur­ porters from the Soviet Union, Eastern rently on the rise among the people of establish the University of Bethlehem Europe and China. Officials of the govern­ Taiwan. A case in point is the recent bomb­ and where she developed a light and ment-run VOA and the government subsi­ ing of the Central Daily News, the KMT sound project depicting the life of dized but privately operated Radio Free propaganda organ which has repeatedly ad­ Christ on the top of the Mount of Europe/Radio Liberty keep asking for ac­ vocated violence against its opponents. Olives. creditation, so they can have the privilege It is most unfortunate that resistence has Through her tireless work for the of sitting in the congressional press galler­ taken the form of an act of violence. The community, her contributions to the ies. But their fellow Washington journalists F APA deplores and condemns all kinds of arts, and education, Sister Elizabeth keep turning them down. violence by all sides. It all goes back to Senate Rule 33, adopted Realizing the potential catastrophe of vio­ has enhanced the lives of many, from in 1877, that denies press credentials to lence which could bring turmoil to Taiwan­ all religious backgrounds. It is my anyone employed "in any legislative or exec­ ese society, the FAPA must redouble its honor to be able to participate in utive department or independent agency of peaceful commitment to eradicate the root Sister Elizabeth's golden jubilee and the government, or by any foreign govern­ causes of such violence. We have repeatedly want to wish her many more years of ment or representative thereof." Depending called on the Taipei authorities to end mar­ happiness and health.e on who tells it, the rule was adopted either tial law in Taiwan, thereby giving democra­ to keep the executive branch from spying cy a chance. We must continue to do so on Congress or to foster objective journal­ until martial law is lifted. We cannot over­ BAN ON VOA REPORTERS IS ism instead of the yellow kind. Whatever, emphasize our dedication to the improve­ OUTRAGEOUS the press committees have maintained over ment of the human rights, interests and the last 40 years that VOA reporters should welfare of the Taiwanese people through be denied gallery passes because they are peaceful and diplomatic means. HON. JOHN EDWARD PORTER government employees. Only last year was As an entirely independent organization OF ILLINOIS this ban extended to cover reporters of pursuing its goals to promote human rights, IN THE HOUSE OF REPRESENTATIVES Radios Europe and Libert y. that Federal employees are denied the eign governments? Why are Tass and time that the Taiwan authorities abandon Pravda allowed in? In 1950, it seems, the their repressive policies before further con­ necessary credentials to sit in the Correspondents Committees bent the rules frontations arise that would endanger the House and Senate press galleries. a bit under pressure from the State Depart­ peace.e As a result, reporters from the Voice ment and major U.S. news agencies, which of America, Radio Free Europe, and feared retaliation against American corre­ SISTER ELIZABETH PARENTE Radio Liberty, radio programs which spondents in Moscow. receive $200 million annually, are But when it comes to VOA and Radio Free HON. JOSEPH G. MINISH banned from press conferences and Europe/Radio Liberty, whose listeners rely other congressional media events that on them to fill in the news that the Tass OF NEW JERSEY and Pravda reporters on Capitol Hill might IN THE HOUSE OF REPRESENTATIVES reporters from Pravda, Tass, and have missed, the good men and women of other Communist government publica­ the Washington press corps refuse to cede Thursday, June 2, 1983 tions are allowed to attend. their principles.e e Mr. MINISH. Mr. Speaker, I am For the benefit of my colleagues, I very pleased to offer a few words am inserting in the CONGRESSIONAL before the House today to mark a RECORD, the Wall Street Journal edito­ THE REVEREND JULE AYERS, joyous occasion in the life of a remark­ rial critical of this outrageous situa­ D.D., RETIREMENT able woman. Sister Elizabeth Parente tion. of New Jersey, is celebrating her 50th The editorial follows: HON. FRANK HARRISON year-her golden jubilee-as a sister in READ ALL ABOUT IT! OF the Religious Teachers Filippini. Among the hordes of Clark Kents in IN THE HOUSE OF REPRESENTATIVES Sister Elizabeth has enjoyed an in­ Washington gathering the most up-to-date teresting and varied career, marked by news about the goings-on in government, Thursday, June 2, 1983 numerous accomplishments. She has, there are a few unsung heroes. Namely, the e Mr. HARRISON. Mr. Speaker, on of course, dedicated her life to the correspondents for Tass, Pravda, Izvestia, Sunday evening, June 5, the congrega­ Hungarian News Agency, East German tion of the First Presbyterian Church church where she has been instrumen­ News Service, China's Xinhua News Agency tal in education and in developing the and Soviet TV and Radio. These reporters in Wilkes-Barre will honor their minis­ community life of her religious order. work diligently to explain the complexities ter, the Reverend Jule Ayers, D.D., on For instance, during the past 3 years, of our freely elected government, upholding the occasion of his retirement from Sister Elizabeth has established one of the finest journalistic traditions of their the pulpit after 39 years of service. the largest teaching centers in New native lands, and are thus accorded official This occasion, Mr. Speaker, is one Jersey. credentials to cover the U.S. Congress. both for celebration and for sadness in Sister Elizabeth began her religious Not so much can be said about the scrib­ the entire Wyoming Valley. life at Villa Victoria, in Trenton, N.J. blers who toil at the Voice of America or With Jule Ayers and his gracious Radio Free Europe/Radio Liberty. Ameri­ and equally dedicated wife Alice, we During her 27 years there, she was an can taxpayers provide more than $200 mil­ active and important member of the lion every year to subsidize these operations celebrate 39 years of devoted service to cultural community. An accomplished to bring news of the free world to more God and man, of pastoral care, of mili­ musician, she is also a performer and than 100 million listeners behind the Iron tary service, of volunteer work within composer, having had many of her and Bamboo Curtains. This, of course, the community, of ministering to the June 2, 1983 EXTENSIONS OF REMARKS 14377 needs of thousands, both in body and munity. The congregation of the First retain medicare's basic structure while soul. At the same time, we express our Presbyterian Church and his many modifying certain features of the program sadness that this outstanding career friends beyond the limits of his pastor­ to make it less costly. will now come to a close. ate are endowing the Jule and Alice Some of these initiatives are not yet yield­ ing savings. Others are under study only. Jule Ayers was born in Detroit, Ayers Foundation, of which he will be Many would make major changes in the way Mich., on March 12, 1911. He graduat­ the first director. In this way, he will we pay for health care. Several would cause ed from Detroit Northwestern High be able to continue his lifelong avoca­ users of health care services to pay more. School in 1929 and the University of tion of helping those in need and par­ The initiatives will not be, nor should they Michigan 4 years later. In 1936, he ticipating in all facets of community be, accepted into. But their very number graduated from the Union Theological life. He has been elected to a term seat suggests the seriousness of the problem and Seminary in New York. on the board of the Osterhout Free Li­ gives us reason to believe that steps are After pastoral assignments in New brary, on which he has sat these many being taken to slow the relentless climb of York and service as a chaplain with health care costs. The initiatives include: years ex officio by virtue of his pastor­ 1. Making people pay more so that un­ the 36th Fighter Group in the U.S. ate. needed health care is avoided. Since 90% of Army Air Force, Dr. Ayers came to Mr. Speaker, it is an honor and a all hospital costs are covered by third-par­ Wilkes-Barre in 1944. pleasure for me to join with the con­ ties (governments, private insurers, and so In addition to his work in pulpit and gregation of the First Presbyterian forth), people are insulated from actual parish, on the streets and in communi­ Church, with the entire Wyoming costs and often may seek health care they ty halls, he has found time to serve as Valley community and with tens of really do not need. Medicare's deductibles a member of the board of directors of thousands of men and women whose and co-payments might be raised in an CIVIC organizations almost without lives are better because they have effort to make beneficiaries more cost-con­ number. Important among them are scious. known Jule and Alice Ayers, in paying 2. Cutting back extraordinary treatment the Family Service Association of Wy­ tribute to a magnificent career and in of the terminally ill. About 30% of medi­ oming Valley, the Citizen's Advisory wishing two wonderful people many, care's payments to hospitals cover the ex­ Committee to the Luzerne County many more healthy and happy years traordinary treatment of the terminally ill­ Commissioners, the Board of Trustees of dedicated service to God and man.e beneficiaries whose health care expenses of the YWCA, the Kiwanis Club, the are almost seven times those of other people Osterhout Free Library, public televi­ in the program. The terminally ill often sion station WVIA-TV, the Labor­ MEDICARE: IDEAS FOR REFORM could find adequate but less costly health Management Citizens Committee of care in nursing homes, hospices, or their the Chamber of Commerce, and the own homes. Congress recently agreed to HON. LEE H. HAMILTON cover health care for the terminally ill out­ Citizen's Advisory Committee for the OF INDIANA side the hospital, and it will continue to ad­ Selection of the First City Manager IN THE HOUSE OF REPRESENTATIVES dress the issue of payment without limit for for the city of Wilkes-Barre. He has extraordinary treatment of the terminally served as president of the Wyoming Thursday, June 2, 1983 ill. Valley Council of Churches and as e Mr. HAMILTON. Mr. Speaker, I 3. Emphasizing preventive health care. moderator of the Lackawanna Presby­ would like to insert my Washington Medicare should focus more on the preven­ tery. He has been chairman of the di­ Report for Wednesday, June 1, 1983, tion of illness by expanding allowances for vaccines and taking other similar steps. vision of social relations of the Penn­ into the CONGRESSIONAL RECORD: Along the same lines, medicare might cut its sylvania State Council of Churches MEDICARE: IDEAS FOR REFORM payments to beneficiaries whose habits are and president of the Pennsylvania In the past several years, no constituent unhealthy. A smoker who damages his lungs State Pastors Conference. I could go at my public meetings in southern Indiana might have to pay more for treatment. on and on, Mr. Speaker, and the time has been more difficult for me to respond to 4. Reducing coverage of the well-to-do. available could not exhaust the orga­ than the one who asks what can be done to Medicare pays the health care bills of all el­ nizations Dr. Ayers has served and the restrain rising health care costs. I am hope­ derly without regard to their finances. The good work he has done. ful that a "quiet revolution" is underway­ projected benefits for 1982 retirees are one which promises some relief from the about 28 times greater than their contribu­ His service to mankind has been rec­ soaring cost of staying healthy. Hospitals tions. Proposals to trim benefits for those ognized by no less than three institu­ have come together in an industry-wide high-income people who can easily afford to tions of higher learning: By Lafayette "voluntary effort" to cut costs. States have pay more include a higher premium for co­ College with the honorary degree of saved millions of dollars by reimbursing hos­ insurance and a tax on benefits. doctor of divinity, in 1953; by Wilkes pitals through "fixed-fee" plans. Corpora­ 5. Requiring the family to help pay for College with the honorary degree of tions have set up new benefit packages and the parents' health care. Under new "family doctor of humane letters, in 1974; and "wellness" programs for their workers. Pri­ responsibility" laws, some states ask adults by my own alma mater, King's Col­ vate insurers have promoted both out-pa­ to help defray the cost of caring for their tient treatment to trim expense and cost­ parents in nursing homes. Congress might lege, with the honorary degree of sharing to discourage unneeded treatment. modify medicare in the same manner. To doctor of laws, in 1983. Free-standing surgical clinics and doctors' ease the burden on the family, the pay­ But more important than the de­ offices in shopping centers are cutting ments might be made from a beneficiary's grees and the honors, more important health care costs as they gain wider accept­ estate after his death. than service on boards and community ance. The federal government has made 6. Giving hospitals incentives to save. Con­ recognition, have been the contribu­ cost-saving reforms in its health care pro­ gress already has established a system of tions which Jule Ayers has made in grams. As a way of making people aware of prospective reimbursement for hospitals. small, countless, everyday ways. He the need to save and prompting them to buy · Rather than covering all costs incurred, less costly policies, the President wants to medicare now rewards efficiency by paying has always been a compassionate tax employer-paid health care insurance a predetermined sum for the treatment of heart, a willing ear, a shoulder to lean premiums if they exceed $175 per month each beneficiary's diagnosed illness. Other upon. Without respect to race, to per family. incentives are being discussed. creed, to religion or to ethnic origin, How to make adequate health care avail­ 7. Providing doctors with incentives to Dr. Jule Ayers has been a friend to able at reasonable cost, especially in connec­ keep costs down. Tests ordered by doctors mankind. When there have been com­ tion with medicare, is an issue that will account for two thirds of the typical hospi­ munity efforts, he has led them. When occupy Congress for years to come. Perhaps tal bill. There might be fewer unneeded there have been community controver­ the most significant savings would come tests if the federal government either re­ from a general containment of rising hospi­ vised the way in which allowable charges sies, he has not been afraid to speak tal costs made possible by the private and are set or listed doctors who do not bill out for what he believed to be right. public measures just mentioned. In addition, beneficiaries for excess expenses. We are fortunate, Mr. Speaker, that many particular initiatives to cut medicare's 8. Eliminating fraud and abuse. Perhaps while he is retiring, Jule Ayers is not costs have been proposed. The ones most one doctor in 20 defrauds or abuses pro­ leaving us. He will remain in the com- likely to be considered are those that would grams of health care insurance. To help 14378 EXTENSIONS OF REMARKS June 2, 1983 solve the problem, an inspector general now [From the Los Alamos Monitor, May 19, tial Scholar paid off, she would have a monitors medicare. Also, stronger proce­ 1983] $1,000 scholarship in hand, she said. dures and penalties are now law. Tougher MATH TEACHER HELPS PRESIDENTIAL SCHOLAR " It would be a good trade-off," she decid- oversight could mean that hundreds more REACH THE TOP OF THE LIST ed. doctors no longer would participate in medi­ For Mischke, the gamble did pay off. care. . ment exams, getting ready for graduation­ Scholar. which makes health care available to its and enjoying her recent designation as a Mischke had to make time to get excited members at prepaid rates. Due to action in Presidential Scholar. about the news. She had traveled to Prince­ Congress last year, beneficiaries of medicare At this time of year, announcements of ton right after spring break to check out the may now join an HMO. This year, Congress awards and scholarships are almost com­ campus, then she went on an orchestra tour, may pass a bill permitting them to select monplace in Los Alamos. Perspective on then she started rehearsals for a part in other alternatives. Mischke's award, however, can be found in "Who's Life Is It Anyway?" and then she 10. Easing the regulatory burden on hospi­ the numbers. launched into studying for her exams in her tals. Although hospitals may see more rules She is one of 1,000 seniors picked as candi­ Advanced Placement courses. to control costs, steps are being taken to dates for the national Presidential Scholar She was too tired to really be ecstatic root out red tape that only makes a stay in program; she is one of 141 seniors picked as when the mail-o-gram came, Mischke said, the hospital more costly. If successful, these Scholars; and there are an estimated 2.8 but "it was good. It was exciting. It all paid steps will mean less paperwork overall, more million graduating seniors in the country off." flexible compliance, and fewer outdated this year. In addition to the $1,000 scholarship, pro­ rules.e One of Mischke's classmates, Tasha vided by the Geraldine Dodge Foundation, Neeper, also was selected as a candidate for Mischke will travel to Washington, D.C., the program, but wasn't picked as a Scholar. next month for a week's stay. During that The criteria were fairly stiff. week, she will participate in a presentation LOS ALAMOS PRESIDENTIAL Mischke was notified before the high ceremony on the White House south lawn. SCHOLAR school's spring break in late March that she Presenting her with a Presidential Scholar had been chosen as a candidate for the medallion will be President Reagan and Scholar program. Education Secretary Terrell Bell. HON. BILL RICHARDSON She was only vaguely aware of the pro­ Mischke will use the scholarship money OF NEW MEXICO gram at first. She found out only later that when she attends Princeton where she plans selection of candidates is made based on to major in either math or the physical sci­ IN THE HOUSE OF REPRESENTATIVES ACT or SAT scores and the information ences. Thursday, June 2, 1983 provided in an optional student question­ For the first time in the Presidential naire included in those college-entrance Scholar program, the student recipients e Mr. RICHARDSON. Mr. Speaker, I tests. were asked to bring with them to Washing­ want to draw my colleagues attention To become a Scholar, the candidates had ton and the presentation ceremony the to an article that recently appeared in to provide information about themselves, teacher who "most significantly contribut­ the Los Alamos Monitor, a newspaper the classes they had taken and the activities ed" to their secondary education. they were involved in. And, they had to Mischke sent in the name of Cathy in my district. answer six essay questions. Strong. This article, written by Monitor re­ One question asked Mischke what one of Strong was Mischke's math teacher for porter Tamara Schonsberg, shares the her dreams is and how she would go about her first two years of high school, and she is story of a special educational relation­ fulfilling it. Another asked her why she the senior's adviser. ship that led to the award of a Presi­ thought of herself as a leader. Another "She was an excellent teacher, and she dential scholarship-one of the high­ asked her to name two books or concerts helped me a lot," Mischke said. "She's also that had had a meaningful impact on her my adviser, and she's been very influential est honors a high school student can life and why. and helpful." receive for academic excellence. And one question offered an option of five Strong made sure that Mischke was Eighteen-year-old Rachel Mischke, a topics to discuss in an essay. The topics in­ taking the right tests, getting the right graduating senior from Los Alamos cluded a discussion of law versus human scores and applying for the right colleges High School, is one of 141 seniors freedoms or a discussion of mathematics as and scholarships, Mischke said. And she across the country to earn the distin­ a philosophy. filled out all the teacher recommendations Mischke chose the math question. that Mischke ever needed. guished Presidential scholar designa­ And one question asked her what it would "I'm sure she's very influential on my get­ tion this year. The competition was mean to her to be a Presidential Scholar. ting chosen for things," Mischke said. "Be­ stiff and all of us in the Third Con­ After outlining her many academic cause she takes the time . . . to tell them gressional District are proud of Ra­ achievements and activities in her written what I'm like as an individual, what my per­ chel's academic achievements. No one response, Mischke concluded: sonality is, examples of what I do. And could be more proud than Rachel's "My learning experiences and achieve­ that's what they want to see.... So I have ments won't stop with my graduation from to give her credit for winning any of these parents Dick and Alice Mischke or her high school. My formal training will contin­ awards-plus, she's a very good friend." high school mathematics teacher ue through college and possibly graduate Mischke admits to being somewhat of an Cathy Strong. school. I will never cease to be a scholar, academic workaholic, and she said Strong Mrs. Strong's dedication as a teacher however, since I will continually be learning makes sure she doesn't burn herself out. and support as a friend helped to in­ and striving to improve myself and the "I tend to be a perfectionist," Mischke world around me. And after all, isn't that said. "I'm loosening up right now. But I spire Rachel to achieve the highest what being a Presidential Scholar is meant tend to like everything perfect-which can academic recognition bestowed on to be?" be a problem because it can't be. . . . She high school seniors. This cooperative Mischke estimated that she spent more ."• Germany." credit also. "I could never have done it on Pioneer Take Out Corporation, headquar­ my own. Pioneer had faith in me in a lot of tered in Los Angeles, entered Eddie's life in ways. Franchisee, franchisor-we're all one CALIFORNIA DREAMIN' COMES 1969, after his army tour. He was married family." TRUE with two children, attending college, and One of Eddie's proudest accomplishments working three jobs. "I was playing music was designing the front of the North Holly­ professionally at the time, six nights a week. wood location. "Tiffany chandeliers, indi­ HON. MERVYN M. DYMALLY It was slowing down because acid rock and rect lighting over wooden booths with cush­ OF CALIFORNIA drugs were in. It definitely wasn't my style." ions, brick flooring-very very warm" he ex­ IN THE HOUSE OF REPRESENTATIVES So, on top of the music, he did occasional plains. And, very very successful. Just 10 Thursday, June 2, 1983 "beef lugging," and took courses at Santa weeks after opening in North Hollywood, Monica City College. Meanwhile, Eddie Eddie was able to pay off, in cash, the entire e Mr. DYMALLY. Mr. Speaker, Cali­ squeezed in training as a food manager at a $36,000 note he had with the bank. Unheard fornia has long been regarded as the hamburger restaurant. "I was working 80 to of. land of opportunity. Many people 85 hours a week and they still weren't satis­ Next Eddie took off time to invent a spe­ have made their fortune in our great fied so I told them where to put their job," cial machine for filtering cooking oil. Even­ State, but few have done it with as he recalls. tually, it was manufactured by another com­ Then Eddie heard that Pioneer was look­ pany, but Eddie still owns the patent. "It much love and concern for his family ing for managers. They hired Eddie on the extends the life of the shortening and 150 and coworkers as Edson Mitchell. And spot. "I started as a utility manager earning Pioneer franchisees use it now." few have started from a position of $800 a month. I was still working 60 to 70 A third Pioneer store was added in 1976. such disadvantage. Orphaned twice by hours a week, but it was different. Rick This one was intended to bring his brother the age of 15, Eddie had lived in 16 Butch, then a Navy man, into the business. foster homes by the time he struck out came down to visit all the time. It was like "He didn't know a thing," Eddie laughs. I'll on his own at the age of 15. Many family. They cared." never forget when we got real busy, I sent people work their way through col­ By the second year with Pioneer, Eddie him out front. Somebody wanted to know and a partner were trouble-shooting for 30 what the "12 Piece Bucket" was. Butch just lege. Eddie worked his way through Pioneer stores. "The biggest problem was stammered, "I honestly don't know, but I high school and still had time to making all the orders and all the deposits figure it's gotta be twelve pieces of chicken." become a businessman as well as a for so many stores." By 1979, Eddie Mitchell was grossing classical pianist. Recently his story Before long, he was urging Pioneer to turn $31,000 a week from his three stores. He was told in the magazine, Franchising over just one store that Eddie could pour might have slowed down then but instead, 14380 EXTENSIONS OF REMARKS June 2, 1983 Eddie hocked all his assets to buy the area tions. Fifty years too late, and no way to pointment of a Commission of Inquiry by franchise for Sacramento. "That's a story in ameliorate the wrong; death is final. the House Judiciary Committee, to study itself," Eddie will tell you. "This is the June 19, 1983, will mark the 30th anniver­ and report on the Rosenberg Case, would be toughest yet. It makes Van Nuys look like a sary of the Rosenberg electrocutions. From a desirable step in the right direction. piece of cake." The recession plus fierce the moment of their executions, no, months The National Committee to Reopen the competition from five other chicken chains before the executions of Julius and Ethel Rosenberg Case urges your Committee, in in the California capital add up to a serious Rosenberg, evidence of massive fraud and considering the matter of capital punish­ challenge. perjury of the chief prosecution witnesses ment, to carefully examine the Rosenberg But, Eddie's in high gear. Already he's de­ began to mount. When the Second Circuit case and its aftermath. We are confident veloped (perfected now, he insists> a new Court took note of "wholly reprehensible" that such examination will prove the desir­ product which boosted sales in three Sacra­ prosecution conduct "which cannot be too ability of abolition. It will also demonstrate mento locations by 18-22 percent a week. severely condeiDDed," there was still time to the need to reexamine the Rosenberg case "With Pioneer behind me marketing this save the Rosenbergs' lives, if the Supreme and to establish the truth of the innocence product, we can be Chicken King in Sacra­ court had but listened to the pleas of Judges of the Rosenbergs and Morton Sobell. In mento." Learned Hand and Jerome Frank and grant­ Sobell's case, partial amelioration is still In the end, Eddie concludes that "only ed certiorari. However, by the time the possible, when he receives the full pardon God knows for sure" if his six Sacramento courts recognized, after the Supreme which is his due.e stores will make him and his extended Court's Grunewald decision, that the Rosen­ family comfortable forever. But, Eddie says, berg trial had been marred by the prejudi­ he has faith. "I don't intend to fail, I'm just cial and unlawful questioning by Prosecutor KEY CONCEPTS CONCERNING gonna do it. I will make it." And that's when Irving Saypol and Judge Irving R. Kauf­ THE MARTINEZ VA PREMEDI­ he'll settle down-with his music. "All the man, it was many years too late. CAL PROGRAM UNDER THE DI­ time, it's my therapy. My music is where I'm Consider this: Judge Kaufman had or­ RECTION OF MICHAEL C. going." dered the executions with the "justifica­ GEOKAS, M.D., PH. D. Bon voyage, Eddie Mitchell.e tion" that the Rosenbergs had stolen the secret of the atom bomb and transmitted it to the Soviet Union, and they thereby were HON. BARBARA BOXER THE DEATH PENALTY AND THE responsible for the war in Korea and OF CALIFORNIA "untold millions" of lost lives in the future. IN THE HOUSE OF REPRESENTATIVES ROSENBERG CASE When top atomic scientists proved that what had been described as "the secret of Thursday, June 2, 1983 HON. DON EDWARDS the atom bomb" was worthless, a hoax, a • Mrs. BOXER. Mr. Speaker, I would OF CALIFORNIA caricature, and the government admitted this in the federal courthouse in New York, like to bring to the attention of the IN THE HOUSE OF REPRESENTATIVES it was much too late to restore the Rosen­ House a program for premedical stu­ Thursday, June 2, 1983 bergs to life. Furthermore, it denied Morton dents being conducted at the Veterans' Sobell the new trial which would prove his Administration Hospital at Martinez, e Mr. EDWARDS of California. Mr. innocence and the innocence of the Rosen­ Calif., under the direction of Michael Speaker, June 19, 1983, will mark the bergs. It would have taken an unusually Geokas, M.D., Ph. D. 30th anniversary of the executions of courageous court to order for Sobell the Recently I visited this hospital to Julius and Ethel Rosenberg. This new trial required by conscience and by law, view the program in action and was seems to me an appropriate time to when such trial would confirm for the entire watching world that their pleas to tremendously impressed with what it share with my colleagues testimony is doing for our young people who are prepared by the National Committee spare the Rosenbergs had been more than justified, and that our refusal to look interested in pursuing a career in med­ to Reopen the Rosenberg Case and icine. presented to the House Judiciary Sub­ amounted to legal murder. As in the case of Sacco and Vanzetti, the The program stresses affirmative committee on Criminal Justice last De­ Rosenberg case shows how capital punish­ action for minorities and women and is cember. I believe my colleagues will ment may be followed by cover-up, degrad­ a program which well might be adopt­ find the statement of National Com­ ing an entire judicial system. It explains ed throughout the country. mittee Director Aaron Katz insightful why honorable Supreme Court Justices At this point I would like to include and thought-provoking. The state­ Douglas and Frankfurter and ·Black protest­ ed the executions so passionately, and why in the RECORD a review of this pro­ ment follows: gram. STATEMENT OF NCRRC ON "THE DEATH the Supreme Court majority would close its PENALTY AND THE ROSENBERG CASE" eyes and its ears, refusing to review "the 1. This is a leadership, self-discipline, and case of the century." The very day of the self-development program for premedical [For record of Dec. 16, 1982, hearing] executions Justice Black voiced his bitter students, mainly women and members of The National Committee to Reopen the protest: "This court has never reviewed this minority groups. Rosenberg Case appreciates the opportunity record and has never affirmed the fairness 2. This is an affirmative action program afforded by this hearing and wishes to of the trial below .... There will always be for minorities and women. record its opposition and repudiation of cap­ doubts." 3. Students come from Bay Area colleges ital punishment. It was a tragic effect of To protect the cover-up, a U.S. President, and universities. capital punishment which resulted in the Dwight Eisenhower, had to lie to protesting 4. The program consists of lecture over­ establishment of our committee. To obviate dignitaries in denying clemency, falsely views on clinical medicine and basic sci­ the need for committees such as ours, we claiming that all the courts had affirmed ences, volunteer work at the Martinez VA look forward to the total abolition of capital the fairness and appropriateness of the Medical Center, counseling sessions for the punishment, and to restoration of the integ­ death sent~nces. And, as evidence accumu­ students, and lectures on topics of interest rity of American judicial processes. lated of prosecution forgery, perjury and by prominent citizens, elected officials, jour­ We are opposed to capital punishment for fraud, decent judges had to sacrifice their nalists, and Medical School faculty. many reasons, but this statement will deal integrity, denying their principles, to pro­ 5. All participating faculty and students with our primary concern, "the possibility tect their colleague's cover-up. are volunteers. of irreversible error," and its potential Fortunately, this country is blessed with a 6. The students are exposed first-hand to "cover-up" aftermath. Wrongly imprisoned system of checks and balances. There are the intricacies of the hospital environment people can be released, but wrongly execut­ Judiciary Committees which have the au­ and have an opportunity to develop the em­ ed people can never be restored to life. thority to look into this cover-up, and to pathy required to make a good physician Accused of being witches, many were exe­ help with necessary legislation to restore and to understand the humanistic aspects of cuted by the Commonwealth of Massachu­ the integrity of our judicial processes. Over medicine. setts in the 1690's, in the hysterical atmos­ one hundred law professors, led by Harvard 7. The students are taught before entering phere of the Salem Witch Hunts. It was too Law School Professor Vern Countryman, medical school about the absolute require­ late to right the wrongs when sanity re­ have called upon the Senate and House Ju­ ment of complete dedication and the need turned to the community. Sacco and Van­ diciary Committees to examine the prosecu­ to become perpetual students. zetti were executed on August 22, 1927, and torial role of Judge Kaufman in the trial, 8. They are taught early about the signifi­ exactly fifty years later, the State of Massa­ the sentences, and the cover-up resulting cance of patient-doctor relationships, and chusetts admitted error; wrongful execu- from this case of capital punishment. Ap- the fact that high technology dehumanizes June 2, 1983 EXTENSIONS OF REMARKS 14381 patient care; they are taught respect and more competition to the television in­ that we are talking about several hun­ compassion for the sick, the young, and es­ dustry and more program diversity to dred thousand dollars per rating point. pecially the old and helpless. the American public. I support H.R. 9. Emphasis is placed on the need for With repeal, it could well be the end more women and minorities to become phy­ 2250 because it keeps in effect regula­ of competition by not only giving net­ sicians by meeting the competition for medi­ tion that prohibits the three television works just more control, but virtually cal school admission. networks from controlling the domes­ complete control. These rules were 10. Encouragement of minority students is tic rerun rights to programs they adopted in 1970 to promote the public constant and the significance of continuous broadcast and thereby diminishing interest in fair competition and diver­ efforts in improving scholastic achievement competition and diversity. sity in prime-time TV programing. is emphasized. Concern has been expressed by some Before 1970 the FCC found that the 11. The results have been extremely re­ individuals that without repeal, the warding and large numbers of women and networks h ;:~,d used their control over minorities have been admitted to medical rules will harm and perhaps bring an the television industry by determining school. end to "free" television. If this were not only what most Americans saw on 12. Great emphasis is placed on family re­ the case, I would not favor such legis­ TV but what they could not see. The lationships and the need for students to lation. Television networks are por­ Justice Department followed with obtain and maintain the support of their traying themselves as helpless under­ antitrust suits, charging the three na­ parents in their efforts for medical school dogs who cannot compete with cable tional networks with controlling the admission. television and other video technol­ entire network television program pro­ 13. This program helps the students to ogies. In addition they are trying to evaluate if they really have the stamina and duction process, from idea through ex­ the willingness to make the enormous com­ convince us that the American public hibition. mitment required to become a physician. will be robbed of "free" TV. These rules have partially offset the 14. Thus, the program constitutes a good Let us look at the true situation. overwhelming dominance of the net­ method for candidate selection for medical Networks currently are the prime-time works. Yet as both purchasers and dis­ school. Students who do not possess the choice of 80 percent of all Americans, tributors of programing, they still needed qualities of dedication and persever­ and by CBS own estimates, they will dominate the TV industry today. The ance drop out quickly and follow other less still command 70 percent of the na­ demanding careers. operation of the rules is simple. They tional viewing audiences by 1990. This prohibit the networks from taking 15. This type of program should be devel­ is with the current rules in effect. oped by medical centers and hospitals away a program producer's syndica­ throughout the U.S. for a practical and ra­ Under H.R. 2250, the FCC would be tion rights. Currently producers sell tional selection of the appropriate candi­ able to consider repeal of the rules by programs to networks, usually at a dates for medical school. 1988. loss, and then hope to make money 16. With early premedical school condi­ Networks also use the argument that later with syndication sales. If a show tioning, dropping out of medical school can they cannot compete with new tech­ is not successful enough to be syndi­ be avoided and that better selection of suit­ nologies, especially the new pay sys­ able candidates can be achieved. cated, the producer has simply lost the tems. However, not only are network amount in excess of the license fee. If, 17. The Premedical Program at Martinez profits in the billions, but they are is unique in this nation. It provides early ex­ however, after several years of net­ posure to hospital environments, direct also being allowed to own a growing work exhibition, the show is syndicat­ teaching by medical school faculty, empha­ fraction of the Nation's cable and pay ed, the producer will recover his losses sis on community and public service, on systems as well. Pay systems are at and earn a profit. The networks, on compassion for the sick, and on self-disci­ best a distant threat to the networks. the other hand, immediately recover pline. It increases awareness of many differ­ The real competition is not pay TV, their investment in a program ent areas of medicine: Habit-induced dis­ but independent television stations. eases

INCOME

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 50,000 75,000 100,000 150,000

INCOME-DEPENDENT EDUCATION ASSISTANCE (IDEA) : TAXPAYERS FILING JOINT RETURNS (1) Progressivity factor •...... 0.429 0.504 0.589 0.706 0.843 0.949 1.000 1.000 1.116 1.280 1.493 1.500 (2) Annual payment per $10,000 maximum account balance (MAB) 2 • $630 $740 $865 $1,036 $1,238 $1 ,392 $1 ,468 $1,468 $1.639 $1.879 $2,191 $2,202 (3) Percentage of income 3 payable per $10,000 MAB ...... 12.6 7.4 5.8 5.2 4.9 4.6 4.2 3.7 3.3 2.5 2.2 1.5 (4)(a) Maximum annual payment...... $750 $1,500 $2 ,250 $3,000 $3,750 $4,500 $4,750 $6,000 $7,500 $11 ,250 $15,000 $22.500 (4) (b) MAB amortizable at rate in (6) 4 ...... •...... 11,905 20,270 26,056 28,958 30,291 32,328 33,267 42,014 52,517 78.776 105,035 157,552 ( 5) Years required to pay back loan at indicated actual interest rates charged on IDEA loans: 8 percent ...... 19 14 11 10 10 9 7 6 6 10 percent ...... 17 13 12 12 10 8 6 6 12 percent...... 17 15 15 12 9 7 7 14 percent ...... 24 24 15 10 8 8 (6) Maximum effective interest rate paid at end of 30 years notwithstanding rates charged 5 .. 4.75 6.25 7.75 9.75 12.00 13.75 # # # # # # (7) Maximum effective interest rate paid at end of 12 years (or shorter period if 150 percent of actual interest rate) 6 ...... 9.00 10.00 10.00 12.25 15.50 19.25 19.50 INCOME-DEPENDENT EDUCATION ASSISTANCE (IDEA) : UNMARRIED TAXPAYERS (1) Progressivity factor 1 •••• ...... 0.467 0.544 0.707 0.847 0.971 1.000 1.066 1.142 1.249 1.468 1.500 1.500 (2) Annual payment per $10,000 maximum account balance (MAB) 2 $685 $798 $1 ,037 $1 ,243 $1 ,425 $1,468 $1,565 $1 ,677 $1 ,833 $2,155 $2,202 $2,202 (3) Percentage of income 3 payable per $10,000 MAB ... 12.6 8.0 6.9 6.2 5.7 4.9 4.5 4.2 3.7 2.9 2.2 1.5 ( 4) (a) Maximum annual payment ...... $750 $1,500 $2,250 $3,000 $3,750 $4,500 $4,750 $6,000 $7 ,500 $11 ,250 $15,000 $22, 500 (4) (b) MAB amortizable at rate in (6)• ...... 10,949 18,797 23,332 24 ,135 26.259 31 ,510 33,267 42,014 52,517 78,776 105,035 157,552 (5) Years required to pay back loan at indicated actual interest rates charged on IDEA loans: 8 percent...... ···················· ··'··· 19 13 11 10 9 8 7 6 6 6 10 percent...... ····· ··· ··························· ······· 17 13 12 11 10 8 7 6 6 12 percent...... ······························· 30 16 15 13 11 9 7 7 7 14 percent...... 24 17 14 11 8 8 8 ( 6) Maximum effective interest rate paid at end of 30 years notwithstanding rates charged 5 ..... 5.50 7.00 9.75 11.75 14.00 # # # # # # # (7) Maximum effective interest rate paid at end of 12 years (or shorter period if 150 percent of actual interest rate) 6 ....•...... 9.50 10.00 11.25 12.75 14.75 18.75 19.50 19.50

1 Based upon income level of borrower; derived from income tax rate structure and specified in Income-Dependent Education Assistance Act. 2 MAB is highest amount of unpaid principal and accrued interest during the history of a borrower's IDEA obligation account. 3 Income is Modified Adjusted Gross Income (MAGI) -Adjusted Gross Income plus certain additional preference income. • 15 percent of MAGI maximum payment; indicated balance is fully amortized at the end of 30 years if the maximum payment is made each year. 5 This figure is relevant for low-income borrowers whose annual payment may not fully pay off loans within 30 years (after which they are forgiven) at the actual applicable rates; if payments are limited by the 15 percent of income ceiling, the 30-year effective rate will be lower. 6 Borrowers are released from their loan obligations after 12 years if they have repaid loans at the applicable interest rates, and are released at an earlier date if they have repaid all loans at 150 percent of the normally applicable rates. #An individual in repayment status for more than 12 years will never pay more than the actual interest rate charged each year on IDEA loans, which is limited to 14 percent in any year; the "#" symbol indicates potential effective rates in excess of 14 percent, and m these cases the balance indicated in ( 4) would have been repaid in a period shorter than 30 years at even the 14 percent maximum rate. Note.-Interest rates are rounded to nearest 'h percent; years are rounded to nearest year.e June 2, 1983 EXTENSIONS OF REMARKS 14399 GILMAN INTRODUCES FAST cle being monitored would be consid­ existing system of one of our trading TRACK SURTAX LEGISLATION ered. partners, is a fair method of ensuring My legislation allows the Secretary, that imported vegetables and potatoes HON. BENJAMIN A. GILMAN upon petition, to add any classification do not further erode our agricultural OF NEW YORK of fresh vegetables, provided that the economy. The American farmer is IN THE HOUSE OF REPRESENTATIVES Secretary concludes that economic among our Nation's most vulnerable injury is being caused or threatened to Thursday, June 2, 1983 entrepreneurs, continually confronted the U.S. producers of that commodity. with the hazards of droughts, floods, • Mr. GILMAN. Mr. Speaker, today I During the marketing season, the pestilence, surplus crops, etc. Unsubsi­ am introducing legislation which is of listed commodities would be monitored dized, it takes our farmers years to importance to our Nation, and to our weekly, but if determined that the av­ recoup their losses from any natural vegetable growers in particular. My erage market price paid does not equal disaster. Their plight is made worse by commodity surtax measure is designed 90 percent of the average price for the onslaught of imported commod­ to be imposed for limited periods and that category for that week in the im­ ities that undercut their prices. This only when agricultural imports are in­ mediately preceding 3 years, then the surtax system will provide needed juring a specific commodity for a cer­ Secretary can designate that vegetable relief, and will be utilized by the De­ tain week. For that week, a sllrtax is as depressed, and monitoring contin­ partment of Agriculture only when triggered. If there is no impact on ues on a daily basis for the prices paid needed. market prices auring the following for articles in that category as well as week, then no surtax would be applied. monitoring on a weekly basis the Mr. Speaker, I request that at this Importation of certain vegetable volume of imported articles in that point in the REcoRD a copy of my pro­ commodities into American markets category that are sold in terminal mar­ posed legislation be printed in full for during periods of heavy volume of U.S. kets. If the average market price is the review of my colleagues. I am re­ production usually results in economic below the benchmark price for that questing prompt hearings and ask my injury to our domestic producers category, and if the volume exceeds by colleagues for their support. Together, through reduced produce prices. The 5 percent the volume of the same im­ by adopting this proposal, we can declared value of a shipment at the ported article sold in a terminal secure relief for the American vegeta­ point of entry into the United States market during the equivalent week 5 ble and potato farmer. often is not accurate. It is therefore years ago, the surtax is established. H.R. 3193 necessary to provide a temporary The weekly monitored terminal Be it enacted by the Senate and House of surtax on commodities from time to market price, when found to be below Representatives of the United States of time when increased volume of im­ the benchmark price, will be subtract­ America in Congress assembled, That this ports is presumed to have resulted in ed from the benchmark price, and this Act may be cited as the "Fresh Vegetable decreased domestic market prices. My difference will be added to the previ­ and Potato Trade Act of 1983". legislation requires the Agriculture ous week's average price difference, if SEc. 2. As used in this Act: <1) The term "article" means a specific Department to monitor certain affect­ any, that is below the benchmark vegetable category commodity entered into ed commodities to determine from price in order to determine the subse­ trade in a terminal market. volume and benchmark prices the quent week's surtax amount. (2) The term "benchmark price" means, extent of economic impact on our do­ After a surtax has been implement­ with respect to articles in a vegetable cate­ mestic growers. Should injury be de­ ed, and the average weekly monitored gory, a price, computed for each month termined for a specified commodity, a price is found to be above the bench­ within the applicable marketing season, surtax system can be put into place, mark price, the previous week's surtax that equals- and the surtax would be collected by will be decreased by the amount of 85 percent of the average monthly customs officials at the border. market price for domestic and imported ar­ this difference in order to calculate ticles in that category for the same month The commodities this legislation the surtax for the following week. during the 36-month period immediately proposes to monitor include: Cab­ The surtax for that vegetable com­ preceding the month for which such compu­ bages, carrots, celery, lettuce, red and modity would be in effect for 180 days, tation is made; or yellow storage onions, potatoes, and and could be extended by the Secre­ if the Secretary considers that the radishes. tary for another 90 days if it is deter­ benchmark price computed under subpara­ For purposes of determining the mined that conditions are still the graph is abnormally high or low because surtax, a "benchmark price" for each same. of harvest variations, 90 percent of the aver­ vegetable category will be determined, There will be weeks, Mr. Speaker, age monthly market price for domestic and imported articles in that category for the and would be computed for each when there will be no surtax. During same month during the 60-month period im­ month within the applicable market­ other weeks, a surtax will be in place. mediately preceding the month for which ing season, 85 percent of the average The importing country will be notified such computation is made. monthly market price for domestic as soon as findings are made by the (3) The term "imported articles" means and imported articles for the same Department of Agriculture, and the articles that have been entered, or with­ month during the 36-month period im­ surtax will be collected at the border. drawn from warehouse for consumption, mediately preceding the month for The problem of imports undercut­ within the customs territory of the United which the computation is made. If the ting American prices affects almost States. Secretary of Agriculture determines every industry. The vegetable industry <4> The term "market price" means the sale price at which imported articles in a that the benchmark price is abnormal­ is not immune, and has been suffering vegetable category are bought and sold in ly high or low due to harvest vari­ severely. American producers of fresh the course of trade at the. three terminal ations, then a computation can be vegetables receive no subsidies what­ markets having the heaviest volume of im­ made that equals 90 percent of the av­ ever from our Government, while ports of such articles. The market price erage monthly market price for that many of our trading partners subsidize shall be based on such quantity of measure category for the same month during their growers nearly every step of the as the Secretary deems appropriate for pur­ the 60-month period immediately pre­ way. Trying to find American grown poses of carrying out this Act. ceding the month for which the com­ carrots in the Northeast is extremely <5> The term "marketing season" means putation is made. difficult. I am imformed that New the marketing season in the United States for vegetables, that are produced in the In determining the market price of York State only has one carrot pro­ United States, of a kind like those in a vege­ imported commodities, under this bill, ducer left, and other States are losing table category, as determined by the Secre­ the sales price of imported articles at family farins year after year. tary. the three terminal markets having the I believe that this proposed agricul­ (6) The term "SecretarY" means the Sec­ heaviest volume of imports of the arti- tural surtax system, modeled after an retary of Agriculture.

11-059 0-87-13 (Pt. 11) 14400 EXTENSIONS OF REMARKS June 2, 1983 <7> The term "terminal market" means a establish a surtax period for such cate­ on the imported articles concerned and such marketing area in the United States at gory which shall be the 180-day period com­ surtax shall be treated as being in effect which major shipments of imported articles mencing on the next Thursday which occurs during the week before such first surtax in a vegetable category are introduced into not less than 5 days after the date on which week. domestic commerce. such determination was made. The Secre­ (d) The Secretary shall certify to the Sec­ <8> The term "vegetable category" means tary shall at the time of such publication retary of the Treasury the surtax, or ab­ each of the following classifications, identi­ notify the exporting countries of articles in sence thereof, as determined under subsec­ fied by reference to the appropriate item such category of such establishment. tion for each surtax week within the numbers of the Tariff Schedules of the (2) The Secretary may extend a surtax surtax period established for a vegetable United States (19 U.S.C. 1202), of vegeta­ period established under paragraph (1) by category. The Secretary of the Treasury bles, if fresh: an additional 90 days if he determines that shall take such action as may be necessary Cabbages provided for in item 135.30. the conditions which led to the establish­ or appropriate to levy and collect any such Carrots provided for in items 135.41 ment of the initial 180-day surtax period are surtax so certified, including the require­ and 135.42. still in effect at the close of the initial ment of additional bond to secure payment Celery provided for in items 135.60 period. of a surtax. and 135.61. (b)( 1) There is imposed on all articles in a SEc. 5. The Secretary and the Secretary of Lettuce provided for in items 136.60 vegetable category to which a determination the Treasury shall each issue such regula­ and 136.61. under section 3(c) applies that are entered, tions as may be necessary and appropriate Red onions and yellow onions, of the or withdrawn from warehouse for consump­ to carry out this Act.e type produced for storage holdings, provid­ tion, in the customs territory of the United ed for in item 136.93. States during each week within the surtax Potatoes provided for in items 137.25, period a surtax for that week, the amount CALIFORNIA FIRM DONATES 137.26, 137.28, and 137.29. of which shall be computed on a weekly 9,000 COMPUTERS TO CALIFOR­ Radishes provided for in item 137.40. basis in accordance with subsection by NIA SCHOOLS The Secretary, for the purposes of this Act, the Secretary on the basis of the applicable may add for the duration of a marketing market prices and benchmark prices. season any classification of fresh vegetable <2) A surtax imposed under this Act shall HON. FORTNEY H. (PETE) STARK provided for in such Schedules as a vegeta­ be treated for all purposes of the customs OF CALIFORNIA ble category if a United States producer of laws as a duty which is in addition to any IN THE HOUSE OF REPRESENTATIVES vegetables of that kind petitions the Secre­ other duty imposed on the entry or with­ tary for such addition and the Secretary drawal from warehouse of articles in the Thursday, June 2, 1983 concludes that economic injury is being vegetable category concerned. • Mr. STARK. Mr. Speaker, last ses­ caused or threatened to United States pro­ (c)(l) For purposes of this section- sion I introduced H.R. 5573, to encour­ ducers of articles in that category after ap­ The term "computation period" means plying the criteria in sections 3 and the 7 -day period that ends on a Wednesday age the donations of personal comput­ (b)(2). in the t\\ o weeks before the week in which a ers to primary and secondary schools. SEc. 3. During each week of the mar­ surtax week begins. During the 97th Congress, the Com­ keting season, the Secretary shall monitor The term "surtax week" means each puter Contributions Act received the market prices paid for articles in each 7-day period, beginning on a Thursday, that broad bipartisan support and on Sep­ vegetable category. If the Secretary finds, is within a surtax period established under tember 22 passed the House of Repre­ on the basis of such monitoring, that the av­ subsection . sentatives 323 to 61. Unfortunately, erage market price paid for articles in any <2> The surtax imposed under subsection after being favorably reported by the vegetable category during a week does not for each surtax week on imported arti­ equal 90 percent of the average price for cles within a vegetable category shall be de­ Senate Finance Committee, the legis­ such category for such week in the immedi­ termined on the basis of the relationship be­ lation failed to reach the Senate floor. ately preceding 3 years, the Secretary shall, tween the average daily market price paid I have reintroduced the bill this ses­ within 5 working days, publish notice there­ during the applicable computation period sion as H.R. 701, with 80 cosponsors of in the Federal Register designating that for articles in such category, and the appli­ and have confidence in its passage this vegetable category as a depressed vegetable cable benchmark price for such article, as year. category. follows: In my home State of California, (b) The Secretary shall, with respect to ar­ If there is no difference between such there exists a similar law which pro­ ticles in each vegetable category designated market price and benchmark price- as a depressed vegetable category under sub­ - week if no surtax is in effect for the imme­ computer equipment to secondary and <1) monitor on a daily basis the market diately preceding surtax week; or elementary schools. This law is provid­ prices paid for articles in such category; and (ii) the surtax for the surtax week shall be ing classrooms in California with com­ <2> monitor on a weekly basis the volume the same as the surtax, if any, in effect for puters that otherwise they could not of imported articles in such category that is the immediately preceding surtax week. afford. sold in commerce at terminal markets. If such market price is below the Apple Computer has just announced (c) If the Secretary determines, on the benchmark price, the surtax for the surtax its "Kids Can't Wait" program which basis of the monitoring required under sub­ week shall be- will donate complete computer sys­ section regarding a vegetable category (i) an amount equal to the difference be­ that is depressed, that- tween such prices, if there is no surtax in tems to approximately 9,000 California <1) the average market price for articles in effect for the immediately preceding surtax public and private schools. that category for any week in the marketing week, or This program will be a great step season was below the benchmark price for (ii) an amount equal to such difference toward giving California's kids the such category; and plus the amount of any surtax in effect for hands-on knowledge of computing, <2> the volume of imported articles in that the immediately preceding surtax week. that they will need for tomorrow's job category that was sold in commerce at ter­ If such market price exceeds such market. Technology is fast changing, minal markets during such week exceeds by benchmark price- and it will take a strong joint effort by 5 percent or more the volume of imported {i) no surtax shall apply during the surtax articles in that category sold at terminal week if no surtax is in effect for the imme­ all the participants-including teach­ markets during the equivalent 7 -day period diately preceding surtax week, or ers, students, and the States computer in calendar year 1978; (ii) the surtax for the surtax week shall be training centers to keep our schools at the imported articles in that vegetable cate­ the amount of the surtax in effect for the the leading edge of technology. Apple gory shall be presumed to be causing, or immediately preceding surtax week reduced is strongly committed to playing a key threatening to cause, economic injury to by the amount of such excess Within 2 working days after (3) For purposes of determining under There have been several recent re­ making a determination under section 3(c) paragraph <2> the surtax to be imposed regarding imported articles in a vegetable during the first surtax week in any surtax ports describing the downward course category, the Secretary, by publication of period, a surtax shall be determined under education has taken in this country. It notice thereof in the Federal Register, shall paragraph <2> on the basis of the find­ is my desire to make Congress aware issue notice of such determination, and ings of the Secretary under section 3(c)(l) of one good example that has been June 2, 1983 EXTENSIONS OF REMARKS 14401 happening in education-Apple's com­ Again, my congratulations to the over 100 K-12 students. State-certificated puter program. State legislators who developed this private tas-exempt special education Mr. Speaker, we have been closely program and to the companies, such as schools. Selected schools operated by monitoring this California tax incen­ Apple, Hewlett-Packard, and IBM, County Offices of Education. who are responding to it. Schedule: tive program. Apple Computer is the May 11: Kids Can't Wait Program an­ third company to inititate a donation Following is additional information on the Apple Corp.'s "Kids Can't nounced. Information mailed to school dis­ program in California. Hewlett-Pack­ trict superintendents, County Superintend­ ard and IBM have begun programs to Wait" program: ents and private school administrators. Let­ put computers in California's schools. APPLE COMPUTER Co. "Kms CAN'T WAIT" ters are also mailed to 9,000 Apple designat­ Clearly, computer companies are will­ FACT SHEET ed schools. Donation Package: Apple 1 /e Computer, May 12-June 10: Administrative officers ing to take advantage of this type of Monitor, Disk Drive, Apple Logo Software, change in the Tax Code. We are now send Apple a list of schools they approve to 1983-84 Sterling-Swift Educational Software receive a computer system. watching how these computers will be Directory, Applesoft Basic Programmers June 20: Apple mails orientation certifi­ used and whether they can, in fact, Reference manuals, software discount cou­ cate to each eligible school. help improve the quality of learning. pons from major publishers, Brochures on computer useage in schools published by June 22-Sept. 30: An individual from each The information we learn can be ap­ the International Council for Computers in school redeems a certificate at an Apple plied to H.R. 701 and H.R. 3098 to Education. dealer and attends orientation session. insure a national program that is effi­ Warranty: Standard 90-day service war­ Apple ships computer system to school. cient and effective. This is federalism ranty on all components. "AppleCare" September 30: Completion of Kids Can't at its best, in which a State can serve Carry-In Service Plan available. Wait Program. as a laboratory for the Nation. Eligible schools: Public K-12 schools. Tax Product will be shipped within 30 days of exempt private schools with enrollments of certificate redemption.e