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It THE CAROLINA TIKES SAT., DECEMBER 5. 1981 Affirmative Action: . Blacks and Tuition Tax Credits By Gerald C. Home, Esquire terrible thing to Moynihan-Packwood Bill must sun; Business In The Black "A mind is a waste," according to the United Negro College Fund. Tis true, so true; but the same Reagan Ad ministration that is working overtime to hand over tax dollars to, the wasteful Pentagon is working equally hard to gut the system of public education that has been a lifeline for those blacks struggling to claw their way out of poverty. One of the more pernicious schemes devised to destroy the public school system is the bill on tuition tax credits introduced by Senators Daniel Patrick Moynihan and Robert Packwood. This legislation would allow parents of private and parochial schools a credit against their income taxes of $500 for each child. Naturally, President Reagan has been doing handsprings about this bill, he's so enthusiastic. Moynihan, who as a Nixon Ad ministration insider cqunseled 'benign neglect" of blacks, now is: advocating "malign neglect" of the public school system that has aided so many black citizens. What is immediately curious about this bill is its cost. Tax credits would cost at least S4-S6 billion to start with. Where will those dollars come from at a time when federal spending is being slashed so severely? The same legislators who are busy as beavers cutting funds for public education claiming the government cannot af ford it somehow have the gall to justify massive tax breaks for private and parochial school parents at great cost to the government. Naturally, this well-financed move ment has found advocates to justify this hare-brained scheme. Some may recall Dr. James Coleman, the well known sociologist from the Universi ty of Chicago, who back in 1966 released a study which indicated, among other things, that black children would perform better if they studied with white children. That report was used to support busing for integration. Fine. Now, however, Prof. Col eman has "re-studied" the situation and claims that "what once appeared to be fact is now known to be fiction." In other words, he says he was wrong in 1966 and has a new study with statistical "proof." According to this new study, private school children do better on tests than public school children, therefore government support should go in that direction. There is no argument that public schools are not doing enough for be faced. This attack on the public school system must be seen in a larger con-! text of an attack on all public ser vices. The plan of the Reagan Ad ministration is to destroy such ser vices, meaning that only those af fluent enough to afford the private sector can enjoy the basics of life. Pulling the plug on the public .transforation system buses, sub ways, trains will harm the black and the poor while the rich ride in limousines and jets. The public hospitals are being shut down across the nation, while the rich can afford doctors in private practice. This is a disaster but the attacks on public education are notably detrimental and come at a time when blacks critically need schooling. For example, with the budget cuts many jobs have been placed in jeopardy. A $10.3 million to riot-torn Miami's CETA program last October to establish a Skills Training Center, and Out-of-School Youth Program and an Entrepreneurial Training Pro gram in heavily black Liberty City, now all seem to be going by the boards, according . to Charlotte Gallogly, executive director of CETA. Gallogly expects to phase out'at least 2,600 public service employees shortly, many of them black. With public schools under siege, many black youths are, being shut out of the picture altogether. Black ' youths lucky enough to emerge from the public school system face an uphill battle if they reach it to college. Black students enrolled in predominantly white colleges and universities drop out of college at higher rates'than whites. According to Leon E. Wiles, of ficial at Pennsylvania State Universi ty, "Studies indicate that, for every 100 white 18-year-olds, about 75 finish high school, about 45 enter col lege and about 15 get a degree. For black 18-year-olds, about 65 finish high school, about 30 enter college and only about five earn decrees. " Statistics indicate that blacks fare better at traditionally black institu tions than at mostly white colleges about 2670 drop out at black schools, as opposed to 37 at mostly white schools. Statistics for secondary schools aren't much better. In October, 1980, a recent report says 23 of the black population, 1 8-21 had dropped out of high school and were not enrolled in $15,000 or More What's New About All Savers Certificate ' ; - , . ,. . By Charles E. Belle. On October 1, 1981, all over America, : ad men and bankers rejoiced. Rolling out special invitations and high powered cam paigns to convince investors and savers to put their pennies into the "New All Savers Certificates." Considering the savings to the banks and savings and loans associations, it could be a big bonanza. But all that glit ters is not gold, especially if you get to be the goat and not the getter. For those who donTt look deep, they will find no gold in the "New all Savers Certificate", only grass. The "New All Savers Certificate" is supposed to give you $1,000 tax fiee, or even as much as $2,000 if you have a legal ' spouse. There is a "catch-22" of course. First, in order to get the $2,000 tax-free you must deposit $15,860 and leave it there in the bank for a year. No more tax free interest by the way after the $2,000. This $ 1 5,860 figure is founded upon the fact that you did indeed deposit that sum of money on October 1st or 2nd at the latest. The interest rate dropped to 12.14 from 12.61 to the utter dismay of most bankers. It turns out the Depository Institutions Deregulation Committee has the ultimate authority on these matters and dictated the drop in in terest rates earlier than anyone expected them. The interest rate is expected to be set at 70 of the U.S. Treasury bill auction rate on the fourth Thursday of the month for the next Monday. Which brings up another investment point: why take a 30 interest rate discount from your $10,000 Treasury bill to start with? Especially since the "New All Savers Cer tificate" interest income is not exempt from state taxes. Congress got the "New All Savers Cer tificate" going by getting people to believe they have the ability to not only save the entire housing industry, but also to provide much needed mortgage money to help all Americans buy homes. Another notable cause that failed from the start. Short-term funds, one-year deposits for the bankers, better not be used for long term loans for mortgages. That is more of the same of the present problem in the banking and savings and loan industries. Unfortunately, the current culprit is the Money Market Fund. Hieh daiiv interest rates and immediate withdrawal of funds deposited is an excellent alternative in vestment to any existing bank savings ac counts. At 16'4 daily average interest rates the Money Market Funds pay, they run rings around locked up Certificates of Deposits at lesser rates. The "New All Savers Certificate is competitive if you are in a high (44) tax "bracket, but pales for poorer people. Alexander Grant & Co., a national CPA firm, claims a joint tax return in 1982 with taxable income over $45,800 will be get ting a tax equivalent yield of 22i. In short, it would take a non-taxable invest ment returning IVA in cash to equal the tax free return of 12.61 offered the first two days in October on the "New All Savers Certificate" for those in the 44 tax bracket. However, for those in the lowest tax bracket, the tax break is marginal if not non-existent. Citibank, New York City's biggest bank, is counseling anyone with a gross income below $15,000 or thereabouts, as well as anvone who cannot park their money for a year, against participating in th "NSW All Savers Certificate." A word from the wise should suffice. To Be Equal Credibility Gap Mr. Reagan's By Vernon E. Jordan, Jr. Budget Director David Stockman land ed himself in a world of trouble when a national magazine published taped inter views with him that featured embarrass ing revelations. Mr. Stockman's off-the-cuff remarks made in the heat of last spring and sum mer's budget battles confirm what the Administration's critics were saying about the economic recovery program's short comings. The highly touted "supply side economics" turns out, in Mr. Stockman's private comments; to be nothing more than a fancy esshvertion of; the old, discredited "(ricklejdown economics" that said if yougive more money to the rich it will trickle down to the poor. That never happened before, and it is not happening, noTheyHole siipply- posed by the Administration. Now we learn that many of those who wrapped themselves in the flag and pleaded the need for "incentives to save and invest" were actually acting out of pure greed. "Do you realize the greed that came to the forefront," Mr. Stockman is quoted as saying. "The hogs were really feeding. The greed level, the level of opportunism, just got out of control. " Meanwhile impoverished mothers on welfare were made public enemies by the Administration spokesmen who talked of out-of-control social spending. But what . ( was really out of control was the raid on the public treasury by already rich special interests. And while the Administration was urg ing an arms buildup in a budget that vir tually gave tne Pentagon a blank check,,- publication, but that it swallowed the Ad ministration's line during the budget bat tles. We got all those sage editorials about supply side economics and the Ad ministration's theories. Now the media 'is left with mud on its face, for it took on face value what even the Administration's i proponents never believed. Even now the media headlines the President's "support" of extending the Voting Rights Act without adequately ex plaining that he backs changes in the Act that would reduce its effectiveness. Again, President's the media reports the eloquent statements about civil rights, without informing people that its actual proposals would effectively gut civil rights enforcement. children 4&tfciaTlblacte Nor can So argue InaiKeM inese sooenng ngures is me iaci mat private schools get better grades and higher marks on tests. But all this begs the question. Private and parochial schools careful ly select their pupils. Unlike public schools, they do not have to accept all children. A private or parochial school can dismiss permanently any child found to be difficult to handle for any reason. Most students in private and parochial schools come from homes with financial and educa tional advantages. As costs increase, private and parochial schools can simply raise tuition. Public schools must cut down on programs and ser vices, increase class size, cut down on materials, etc. Dr. Coleman by-passed such ob vious factors in his study. But the point is that this inadequate bit of research is being trotted out at this particularly perilous time to justify abandoning the public school system. In fact, in their losing effort to im plant the tuition tax credit system for private and parochial schools in predominantly black Washington, D.C., Coleman's research was displayed prominently. Luckily, the voters in the nation's capitol were smart enough to see through this flim-flam but the in the 1970-1980 period, black college enrollment doubled. About one million blacks, 14-34 years old, were enrolled in college in October, 1980, compared to about 522,000 in 1970. So, yes progress has been made. All has not gone downhill. But the linger ing specter of tuition tax credits looms menacingly on the horizon. If the Moynihan-Packwood bill passes, the public schools that have been hit by teacher strikes, equipment breakdowns, dated textbooks and concomitants such as drugs, violence and the like, will obviously face more of the same. Some argue that private school parents pay taxes to support public schools and therefore deserve a break. But the elderly, single persons, and childless couples receive no direct, service from public schools. Should they get tax credits, too? Such a ra tionale makes no sense and exposes the fraud that is the tuition tax credit system. But it will take more than per suasive rationales and honeyed words to reverse a system that, if enacted, will mean the end of the public school system. Meanwhile, the effective tax on poor people was raised through cuts in pro grams that transferred cash or cash equivalents such as welfare benefits and food stamps. That exposes the moral bankruptcy of a policy that pushes the poor against the wall while showering fur ther benefits on the affluent. During the debate over the tax bill the special interests had a field day, eventual ly winning additional concessions unop- wamp of $10 to $20 to $30 billion worth of waste that can be ferreted out if you really push hard." But to this day, no one is pushing. The real expose in the story is that the Administration's economic policy is bas ed on deliberate falsehoods, wishful thinking, and economic theories that, rather than being new, are actually recycl ed versions of proven failures. The real scandal is not that the press is publishing material never intended for confirmation hearings that the press final ly got around to pointing up his obvious inadequacy to hold such an important post. One must wonder whether such a nominee was chosen - to intentionally discredit the civil rights enforcement responsibilities of the federal government. So the Washington revelations have opened up a credibility gap for this Ad ministration. The skepticism minorities voiced about its policies andjntentions have been confirmed. Getting Smart The Troubling Immigration Issue BLACKS DESTINY IN OWN HANDS BLACK POWER - A DECLARATION OF INDEPENDENCE OF WHITE LEADER SHIP AND WHITE FbTGriXlMIM A'VIAiM DIRECTION." WiZif VH I m mm CHARM V.HAMH.TOH "55 -jr. mwe Americans have long been proud of the beutiful Statue of Liberty, a gift from , France, and the words, "Give me your tired, your poor". People from around the world have sought and found refuge in the United States. During the turn of the century, im migrant groups played an extremely vital role in our labor intensive industries. In addition, the immigrants brought their cultural heritage with them which added to the rich mosaic of the American pluralistic society. Times change and conditions change; today the needs of industry have changed dramatically from a need for untrained workers to a need for skilled technicians. Robots now do the work that was former ly done by thousands of human beings, and America has not yet figured out a way of training its unskilled, unemployed workers or of expanding job oppor tunities for those desperate for a job, let alone your tired and poor from all around the world. Part of the problem can be attributed to ihe "creative tension" between manage ment and labor unions. In some instances, management has produced facts and figures to prove that labor costs are ex cessive in some areas in relation to a foreign competitor. In other instances, notably with farm workers, widespread exploitation and human degradation has been shown to exist when management doesn't have to negotiate with a union. Florida is a state which complains that it has taken more than its share of refugees. An estimated 112,000 have come since 1980. The burden on state, local and Federal governments has been estimated at $210 million. Yet some of the sugar cane growers are planning to bring in 9,000 West Indians to cut the cane while there are thousands of unemployed persons already there. The growers com plain that you cannot recruit a reliable work force that will complete the season. However, a representative of the Farm Workers Rights Organization sneaks of By Walter L. Smart Executive Director United Neighborhood Centers of A merica poor working conditions and poor pay, and is convinced that reliable crews can be recruited from within the state of Florida. The problem is a long way from being resolved; meanwhile the numbers of unemployed persons continue to grow; I don't know what the solution should be but if anyone tells you that it is a problem that only affects management and unions, you tell them that they arc crazy. In many ways the expanding unemployment pro blem in the United States has touched our lives in dramatic and frequently violent ways and the bomb is stjl ticking. (Dir Carolina nf o "Self-Preservation The First Law Of Nature" Spend your bucks with merchants who spend some of their' s in YOUR community. If we are ever to "overcome", we must weigh the economics and be ever mindful about WHERE we spend. Those merchants who advertise in The Carolina Times are telling you that they want your business; they appreciate your business; they spend in your community, too! It Makes Good Sense LE. AUSTIN Editor-Publisher 1927-1971 USPS 091-380 . PublisheiTevery Thursday (dated Saturday) at Durham. N.C., by United Publishers, incorporated. Vr.; P0 Box 3825, Durham, MX. 27702.3825. Office located at 923 Old Fayettevllle UZ& Sur5,m' M c- 27701 'won" Class Postage paid at Durham, North Carolina 27702. POSTMASTER: Send address changes to (HE CAROLINA TIMES. P.O. Box 3825. Durham" N.C 27702. SUBSCRIPTION RATES: One year. $12.00 (plus " w North Carolina residents). Single copy 30c. Postal regulations REQUIRE advance pay ment en subscriptions. Address all communications and make aB checks payable to: THE CAROLINA TIMES. NATIONAL ADVERTISING REPRESENTATIVE: Amalgamated Publishers. Inc., 45 West 45th Street, New York, New York 10036. Member: United Press International Photo Service,, . $2 ,w,pp, fcoBsheri Association, North Caretmi Black Publishers Association. Opinions expressed by columnists In this ! iwwspaper de not necessarily represent the policy of this newspaper; , .' This aewspapsr WILL NOT BE RESPONSIBLE (or the return el unsolicited pictures.
The Carolina Times (Durham, N.C.)
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Dec. 5, 1981, edition 1
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