Tax Plan Hits Rich, Business
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iiaurlirBtpr) Manchester — A City of Village Charm Hrralft 30 Cent's Saturday, Nov. 21,1987 TAX PLAN HITS RICH, BUSINESS WASHINGTON (AP) - The $9 One way to do that would be to billion deficit-reduction tax in drop a provision raising Medicare crease endorsed Friday by Presi taxes on the estimated 8 miilion dent Reagan and congressional workers who next year wiil earn leaders is expected to be felt mainly more than about 945,000. The tax is by telephone users, the wealthy and deducted from paychecks as part of corporations. the Social Security pay roil tax. The Those provisions were central provision is not in the House elements of separate tax-increase package. bills passed by the House and by the Either bili would close a major Senate Finance Committee last estate-tax loophole for the wealthy month. Senior tax-writers said they that was enacted in iast year’s tax expect the final version of the tax overhaul. That change would cost increase will be drawn from the the estates of some of the nation’s most acceptable parts of the two wealthiest executives about 91.3 bills. biilion a year. Neither bill contains — and there Both biiis also would would is little support in Congress for — repeal a special accounting system, any tinkering with the newly known as the completed-contract reduced individual and corporate method, favored by defense con income-tax rates. Nor is there any tractors, at a saving of 9800 million. effort to delay the final installment *1110 Reagan administration op of the individual tax-rate reduction poses repeai. scheduled to take effect Jan. 1. In the House bill is another Because the House has already provision that the administration passed its tax increase—albeit by a opposes and that some Wall Street margin of only one vote — it will be analysts blame for problems in the up to the Senate Finance Commit financial markets. This provision tee to take the first action on tax would reduce tax benefits that help elements of the deficit-reduction finance corporate takeovers. There plan whose framework was an is strong opposition to that provi nounced at the White House Friday. sion in the Finance Committee. Once that panel acts and if the Some other provisions in one or Senate then approves the bill, a both bills; conference of senior tax-writers • Telephones: Both would ex from the two houses would work out tend for three years the expiring 3 the final details of the tax Increase.. percent tax on local and long The final product then would be distance telephone service. subject to one last vote in each • Estimated taxes: Both would house before being sent to the tighten rules requiring corpora ' ThaAwodaMdPraM president. tions to pay more of their taxes in The Senate Finance Committee advance, resulting in 91.8 billion JESSICA QOES HOME — Nineteen-month-old Jessica McClure holds proposal would raise taxes by about increased collections next year. • Home loans: The House plan — her mother’s hand as she leaves Midland Memorial Hospital in Midland, 911.5 billion in 19U, which means the panel would have to wipe out but not the Senate — would limit Texas, Friday. Jessica spent more than a month In the hospital after she about 92.5 billion of the tax increase was rescued from an abandoned water well. Story on page 3. it already has recommended. ’Turn to page 2 Coventry girls in title game Patriots face defending champ Granby ... page 56 No problem SNAFU bySrueaSMltlc Phone users, corporations, Union leaders against early with talks, wealthy to feel tax increase says Shultz WASHINGTON (AP) - Secre Contlnned from page 1 installment plan. to stockholders and another to the talks at Pratt a User fees: Both would require IRS would face a 92.8 billion tax tary of State George P. Shultz deductible home-eqt|ity loans to increase through the minimum tax. denied. Friday that negotiations users to pay for selected govern EAST HARTFORD (AP) — Machinists union 9100,000, no matter what purpose a Partnerships: Under the with the Soviets to ban medium- ment services, including advance leaders are urging Pratt ft Whitney workers to reject the proceeds were used for. It would tax rulings from the Internal House bill, many limited partner range nuclear weapons were the company’s offer to begin contract talks early to limit to 91 million the maximum Revenue Service and Coast Guard ships whose shares are traded on snagged. discuss the effects of major layoffs anticipated for next amount of home-purchase mort towing. the open market would be taxed as He said he would meet next gage loans on which interest could a Federal debts: Both bills would corporations. year. Monday aqtf ’Tuesday in Geneva In a flier notifying Machinists members of a Sunday be deducted. extend IRS authority to withhold with Soviet Foreign Minister meeting and vote on the company’s proposal, union a Installment sales: The Senate tax refunds from people who have a Estate tax: Both bills would Eduard A. Shevardnadze to try to leaders said the executive boards of the four locals bill — but not the House — would overdue government loans. freeze the maximum estate tax rate clear away an “ Immense amount of representing PftW workers in Connecticut voted bring In 91.8 billion by eliminating a a Minlmam tax: Corporations at 55 percent, rather than letting it detail” before next month’s super tax break for dealers who sell on the that report one set of profit figures drop to 50 percent. unanimously to reject the offer because PftW wants to power summit. limit the scope of negotiations. Still, with the summit only 18 The company notified union members ’Thursday days away, the treaty continues to through notices posted in plants that if they begin elude the grasp of U.S. and Soviet Budget slashing as painful negotiating a contract soon, the meetings could include negotiators. And Shultz did not “I warned you...start robbing stagecoaches discussions of layoffs, severance pay and pensions. predict it would be ready in time. at night...or our tan lines will give us away!” Betty Webber, directing labor representative for “ I hope.we can do that,” he said. Machinists District 91, which represents hourly In announcing the Geneva talks. workers at all plants, said Friday that the company State Department spokesman Cha as ‘a toaster In the bathtub’ rejected the union’s request to discuss early rles E. Redman said “ there is no Connecticat Weather retirement incentives. crisis.” WASHINGTON (AP) - The fail. “ After several meetings, the company’s response He said Shultz had asked She If Congress rejects the comprom budget cuts imposed on the federal was they could not entertain early retirement in vardnadze to meet with him and the Central, Eastern Interior, Sonthwestem Interior: ise announced by Reagan on Friday government by the Gramm- isolation,” she said. “ To entertain that request they Soviet “ readily agreed.” Saturday, bitter cold and windy. Some morning clouds, and the Gramm-Rudman cuts are Rudman law would force reduc wanted the union to open early negotiations for certain “ The chances are no doubt very then becoming partly sunny. High near 25. Wind allowed to stand, more automatic tions, as one senator put it, as items of the contract only.” good that the agreement will be ^northwest 15 to 25 mph. Saturday night, clearing and belt-tightening will ripple through painful “ as if somebody dropp^ a During the past year. PftW has reduced its wrapped up,” Redman said. colder. Low near 20. Sunday, mostly sunny and cold, the government. toaster in the bathtub.” Connecticut work force by 2,250, including nearly 2,000 Two key verification Issues re ,High in the 30s. The cuts “ may hit them about the At least three areas will feel the salaried workers who agreed to take early retirement main unresolved. One deals with NortRwest Hills: Saturday, bitter cold and windy. same as if somebody dropped a effects almost immediately: Medi or resign with severance pay. data on Soviet missiles. The other Mostly cloudy with some flurries. High near 20. Wind toaster in a bathtub,” tenate care, guaranteed student loans and ’The union has been seeking a similar package of involves inspection of U.S. and northwest 15 to 25 mph. Saturday night, clearing and Budget Committee Chairman Law- dairy price supports, according to incentives for hourly workers that could reduce the Soviet facilities to guard against coldtr. Low 10 to 15; Sunday, mostly sunny and cold. ton Chiles, D-F1a., warned in an work force without major layoffs. Union officials said High in the 30s. the administration’s Office of Man Vj cheating. earlier plea to avoid the Gramm- earlier this week they expect about 2,000 people to be White House spokesman Marlin West Coastal, East Coastal: Saturday, bitter cold. agement and Budget. Rudman cuts. laid off soon. , Fitzwater left open the possibility Windy with partly sunny skies.* High near 30. Wind But the ax will fall more slowly Chiles and the staff of his The current Machinists contract expires In De that the treaty may not be ready northwest 20 to 30 mph. Saturday night, clearing and with most of the $23 billion, AP photo across-the-board slashes. Officials committee offered a number of cember 1988. when Soviet leader Mikhail S. colder. Low 15 to 20. Sunday, mostly sunny and cold. examples of Gramm-Rudman's at many federal agencies are ’The union says the company wants to extend the Jessica McClure is lead awBy from Midland, Texas, Gorbachev arrives Dec. 7 for three putting off permanent reductions in ultimate impact: current agreement until 1991; give lump sum days of talks with President • ’The Federal Aviation Adminis Memorial Hospital on Friday by her mother.