2The Daily Tar HeelThursday, January 25, 1990
World and Nation
Bush blasts Social Securely tax cot
From Associated Press reports
WASHINGTON President Bush
on Wednesday lambasted a proposed
Social Security tax cut as sleight of
hand but labeled as "innovative think
ing" a plan that eventually would make
the retirement system private.
Bush said he was "not prepared to
endorse" a plan sponsored by Rep. John
Porter. R-Ill., and the House Republi
can whip. Newt Gingrich of Georgia.
"It's worthy, though, of consideration,
of some study," he said.
"People are concerned about Social
Security, so when you have innovative
thinkirm of that nature. I don't want to
just gun it down," Bush added. "I'm not
going to support it."
Under the Porter-Gingrich proposal,
Social Security taxes would be gradu
ally channeled into a type of mandatory
Individual Retirement Accounts. As
workers IRAs grew, their claim on
Social Security would decline. By the
time today's workers are retired
about 50 years from now, Porter esti
mated Social Security would be
fully privatized.
Seldom since Republican nominee
Barry Goldwater's losing 1964 presi
dential campaign has a national GOP
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figure spoken publicly of even the
remote possibility of replacing Social
Security with private retirement plans.
The president's refusal at a news con
ference to reject the Porter-Gingrich
proposal was quickly criticized by Sen.
Daniel Moynihan, the New York
Democrat whose own tax-cut plan was
dismissed by Bush.
Moynihan, who is considered one of
the government's top authorities on
Social Security, said of the Republican
congressmen's proposal, 'The presi
dent described that as innovative think
ing.' "Was it innovative thinking after 50
years of steady payments to start dis
mantling Social Security? I don't think
so.
The subject of Social Security arose
at Bush's news conference when he
was asked about Moynihan's plan to
roll back this year's tax increase and
reduce one scheduled next year. The
aim of the bill which has attracted
widespread interest, if not support, in
Congress is to halt the use of surplus
Social Security taxes to make the fed
eral deficit appear far smaller than it is.
Bush said he sees no need for any
major change in Social Security at this
time. "I think the system has been, in
and out over the years, basically a pretty
fair system," he said.
Moynihan's bill is "a disguise for
increased taxes around the corner,"
Bush said. "This is a ... sleight-of-hand
operation," he added, noting that shortly
after Moynihan outlined his plan. Sen.
Ernest Hollings, D-S.C, proposed to
replace revenues from the reduced
Social Security taxes with a national
sales tax.
"There is no sleight of hand whatso
ever," Moynihan replied, "and I do not
Congress
see that there was any need to make
such a characterization."
Lawmakers from both parties have
expressed displeasure that Social Se
curity surpluses which are building
at the rate of $1 billion a week are
being used for deficit reduction, rather
than being invested solely for the bene
fit of future retirees.
Moynihan has been speaking on this
issue for months. But it grabbed public
attention for the first time when, during
a slow news period over the December
holidays, he called for cutting the taxes
if they are not going to be saved for
Social Security.
There were these other developments
Wednesday:
O Bush said Congress should wait to
see his own proposal for gradually
taking Social Security surpluses out of
the federal deficit calculation. That
long-range plan, starting in 1 993, would
require that a growing portion of the
surplus be used to retire publicly-held
debt.
n House Speaker Thomas Foley, D
Wash., said he has serious reservations
about Moynihan's proposed tax cut,
which would require Congress to find
an additional $55 billion for deficit
reduction this year. He said he fears
that instead of raising taxes or cutting
spending to make up that loss, Con
gress and the president would opt for
increased borrowing.
B Reps. Byron Dorgan, D-N.D., and
Richard Durbin, D-Ill., proposed to
roll back only this year's increase in the
Social Security tax rate which rose
from 7.5 1 percent to 7.65 percent of the
first $51,300 of wages. Congress then
could use the rest of this year to devise
a plan for ensuring that Social Security
taxes are used solely for Social Security.
Romanian protesters accuse
government of deception
From Associated Press reports
BUCHAREST, Romania
Hundreds of protesters broke through
lines of police and soldiers Wednes
day and surged toward government
headquarters, demanding the leader
ship resign and accusing it of being a
front for Communist rule.
The crowd of about 1 ,000 people
at Victory Square pushed through
two lines of unarmed police and then
through a line of armed soldiers who
took no strong action to hold them
back.
The army moved in tanks very
slowly, and the crowd retreated, still
chanting "Communists in disguise!"
and "Elections without the Front!"
a reference to the National Salva
tion Front's plans to participate in
elections May 20.
The Front, which has been gov
erning Romania since dictator Nico
lae Ceausescu was ousted Dec. 22,
had said it would not run candidates
in the election. On Tuesday, how
ever, it reversed itself.
E. German economy threatened
EAST BERLIN East
Germany's economy may collapse
within a year unless the Communist
government discards central plan
ning and embraces radical market
reforms, a prominent economist said
in an interview published Wednes
day. "The house is on fire, and the
government is wasting time postur
ing. Every attempt to shore up a
planned economy must be resisted,"
Siegfried Schiller said in an inter
view with the newspaper Die Union,
distributed by the official news
agency ADN.
Schiller, the Communist deputy
News in Brief
director of Dresden's economic re
search institute, said East Germany
must adopt investment incentives that
will allow West German businesses
to profit from joint projects. He called
the government's expressed fear of a
sellout "demagoguery."
Pressure for conversion to a mar
ket economy has been building in
recent weeks. East German economic
performance last year was the worst
in a decade growth of only 2
percent, less than half the goal set by
planners.
Child-burner on probation
LOS ANGELES David
Rothenberg will never forgive his
father for setting him on fire, saying
Wednesday's release of the man who
disfigured him leaves him terrified
despite unprecedented measures to
keep the felon away.
"Obviously, he is very concerned,
and he has every reason to be," said
Tipton Kindel, spokesman for the
state Department of Corrections in
Sacramento.
Rothenberg, 49, wearing an elec
tronic leash to monitor his move
ments during his three-year proba
tion, "was escorted out of the prison
by motor vehicle" at 1 2:40 a.m., said
Kindel.
"He is out on parole, and he has
reached his destination," the spokes
man said, declining even to disclose
whether Rothenberg was paroled
within the United States.
The older Rothenberg "said he
was afraid and upset, but he didn't
elaborate," Kindel said.
from page 1
eluded in the guide. "There is far more
information than can possibly be pre
sented in a guide."
In other business, congress approved
a resolution requiring The Daily Tar
Heel to return student fees over a three
year period, but with an amendment
specifying that the DTH editor must
still be elected rather than appointed by
members of the staff.
Dula and Mark Bibbs (Dist.12)
expressed concern that the DTH would
later privately appoint the editor, limit
ing its effectiveness as a student news
paper. Tonya Blanks, acting president of
the Black Student Movement (BSM),
spoke against the resolution.
She said she questioned whether
campus coverage would be fair once
the DTH became incorporated. "The
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BSM has a question about the coverage
it will get," she said. "What will make
(the DTI I) any different from, say, The
Carolina Critic?"
But Buchenau said he believed cov
erage of student groups would be
"basically unaffected" by the change.
"Our present level of control (over the
DTH) is minimal to begin with. Stu
dent gornment is probably not the
best body to exert control over a news
paper." Congress also passed a resolution to
Middlebury
support efforts of the Graduate and
Professional Students Federation
(GPSF) to lobby for higher graduate
student stipends.
Congress also passed a resolution in
favor of a Chapel Hill Town Council
proposal to make a portion of the
Cameron-McCauley Street area a his
toric district and a resolution to make
the language of the Instrument of Stu
dent Judicial Governance more gender-inclusive.
from page 1
or six other housing facilities will be
come part of these "houses."
UNC's Greek system is not moving
towards such a drastic change, said
Donald Boulton, UNC Dean of Student
Affairs.
"I would certainly never move to
wards this in terms of coeding unless
the students were for it," Boulton said.
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"I don't know if we want to embark
upon human engineering and tell the
students how to live."
But because Middlebury requires
students to live on campus and the
university owns the fraternities' houses
and property, it is understandable why
the trustees made this decision, Boul
ton said.
"We don't require students to live on
campus at UNC, and we don't own the
fraternities' houses," Boulton said.
"These things will not happen here
because of these facts."
Surprised at Middlebury's decision,
UNC Panhellenic Council President
Becky Mustard said the type of pro
grams discussed might be limited for
these new "houses."
"If the fraternities did go coed, is
sues such as date rape might not be
looked at from the same angle," Mus
tard said. "I also think both male and
female autonomy may be lost in such a
move. I wonder why they wouldn't
look to bring sororities back into their
Greek system first."
Whether or not women will want to
take part in the new socialhousing
organizations is an interesting ques
tion, said Ann Hanson, Dean of Col
lege at Middlebury.
"The fraternity housing is the nicest
on campus, and people have questioned
why it has only been available to males,"
Hanson said. "We hope to make our
solution fair to the fraternities and at
tractive to females as well."
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