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The Daily Tar Heel Tuesday, October 28, 19863 Tax law may cut doeatioes By TERESA KRIEGSMAN Staff Writer The tax reform laws may give the government more money, but they are also likely to reduce the amount of money donated to UNC, accord ing to Gary Evans, vice chancellor for development and university relations. "It's hard to calculate the precise dollar effect of the new laws, but the overall effect will be negative," Evans said of the reforms signed last week by President Reagan. There are two major changes in the tax laws that will affect dona tions, Evans said. First, only people who itemize their tax returns will be able to take a deduction for char itable donations. Under the current law, both people who itemize and those who do not can take a deduc tion for donations. Evans said only about 20 percent of those who file taxes itemize their returns. That means that for the remaining 80 percent there is no AT&T told to rework By DAN MORRISON Staff Writer AT&T was to blame in a major three-town breakdown of long distance phone service last spring, the president of the Chapel Hill Technical Review Task Force said Monday. "It was clear that the source of the problem was AT&T," Richard Helwig said. "They were sending test messages from Durham, and some of those messages happened to leak into the active side of the system, resulting in the breakdown." The Task Force last week released a report and proposals to rework the existing local long-distance phone network to prevent another two week break in service like the one that occurred in Hillsborough, Chapel Hill and Durham April 6 21. During the 15-day period, custo mers in the three towns heard an "a!! lines busy" recording and a fast busy signal whenever they tried to dial long distance from their homes. Helwig xp'.ained. Businesses like banks, grocer stores and auto garages were almost paralyzed by the breakdown, he said. Central Telephone Co. of Hills borough, General Telephone Co. of Durham and AT&T all provide phone service in the area. General and AT&T are mainly responsible for long-distance phoning. Tour Source For Quality Furnishings at Affordable Prices " jSiLIVIN' e-z FURNITURE AND ACCESSORIES Ram's Plaza Credit Terms Available M-F 10am-8pm 15-501 By Pass 967-7060 F1F Sat.10am-6pm Chapel Hill L- I ga! Sun. 1pm-6pm Our Chopped Sirloin is more than a 1A pounder. More than ground beef. Here's real Sirloin. Lean and cut fresh from the finest grain-fed Western beef. Aged, seasoned, and made daily. Served with hot bread, baked potato or French fries. 324 W. Rosemaiy benefit for making a contribution to a charity. Although most large donors item ized their tax returns, the reform laws also lowered the top income bracket from 50 percent to 28 percent. This causes the cost of a donation to increase: Under the current law, a $ 1 00 donation actually costs $50 beacuse the donor receives a $50 tax deduction. With the new law. a $100 donation will cost the giver $72, with only a $28 tax deduction. Second, donations will begin to figure into what kind of tax people will pay. Because the government does not allow people to be totally tax-exempt, those with all of their income tied up in tax-exempt secur ities will have to pay taxes on the appreciated part of any donation they make. This is called an alternate min imum tax, and it means that if a donor buys property for $10, and the property increases in value to $100 After many grievances, the N.C. Utilities Commission in May ordered all the phone companies to respond to complaints about service. Since then, all three have worked to prevent major breakdowns, George Gustier, Central Telephone District Manager, said Monday. "We (Central Telephone) con ducted hourly reports during the problem, and AT&T had people monitoring it. 24 hours a day," Gustier said. "Both AT&T and General Telephone brought in experts from the outside, too. "Of course, external forces such as lightning and bad weather prevent us from developing a sure way to prevent such breakdowns," he said. The main problem was really the finger-pointing going on during the crisis, he added. "Central had to go through General to correct the problem," he said, "and General had to sav to AT&T, lix it!' " Helwig and the Task Force pro pose to prevent future breakdowns by esiabiMii;-'. a three-link system instead of a two-link, whereby phone connections would be diverted if complications arise. Under this plan. Central Tele phone would hook into the existing long-distance connection between AT&T and General Telephone. That way, if breakdowns occur, phone lines could be redirected DESK and CHAIR $9988 only Solid Beech With White Mica Top Adjustable Height Chair And Desk Flat Or Angle Top On Special Today Thru Thursday $199 Includes Our Soft Serve Dessert And Topping Bar St. 942-1816 betore the donor gives it to a charity, the donor will have to pay taxes on the $90 difference. Evans said he thought many people would donate gifts to the University before the tax laws went into effect so they could get a larger deduction. "1 think youH see an increase in giving in December 1986 offset by a reduction in the first six months of 1987," he said. Evans said the donations were used for student scholarships and to supplement faculty members' salar ies and provide them with research funds. He said the University received $25 million last year. But Evans added that it was not whether people will give, it was a matter of how much. "The question is whether dona tions will go up at the same rate as they would have without the new laws, and there is no way to tell," he said. eetworl through Central Telephone. "Right now, it would be a question of who buys rights from whom," Helwig said. "The divestiture of AT&T in 1983 by the FCC looked to promote competition for long distance between major long distance companies and local exchange companies. This has left much confusion." There are no technological reasons why channels between the three companies could not be established, and once preliminary cables were laid, there would be no real increase in costs, he added. The Task Force, a citizens group, organized in December in response to a large number of phone service complaints. American Heart Association SALES Q Campus Calendar The DTH Campus Calendar appears daily. Announcements must be placed in the box outside The Daily Tar Heel office, 1 04 Union, by noon one day before weekend announcements by noon Wednes day. Only announcements from University-recognized campus organizations will be printed. Tuesday 1 p.m. Career Planning and Placement Services will hold an on-site interview ing workshop in 306 Hanes. 2 p.m. Career Planning and Placement Services will hold a career workshop in the Union auditorium, with similar meetings to follow at 4 p.m. and 6:30 p.m. 3:30 p.m. Career Planning and Placement Services will hold an internship and academic credit workshop in 210 Hanes. Russian and East Euro pean Studies Curriculum will sponsor a public lec ture by Robert Rupen on "The Evil Empire: A His tory of Negative Assess ment of Russia," in 355 Hamilton. 5:30 p.m. The University Budget Committee of the execu tive branch of the Student Government will meet in 218 Union. 7 p.m. N.C. Student Legislature will meet in 226 Union. Alpha Epsilon Delta, the pre-med pre-dental honor Avoid the lottery blues. Apply now! All apartments on the bus line to UNC. Call today for full information 967-223! or 967-2234. In North Carolina call toll-free 1-800-672- 1678. Nationwide, call toll- free 1-800-334-1656. The Apartment People m I i m r ft l m ail mm irr i ,. MANAGEMENT! Multi-Million Dollar Immediate, challenging management responsibility (starting at 2-5 million dollars in annual sales) Personalized training Fast-paced work environment Motivated Creative Aggressive Leaders (octr fc &anc t.ac$ - (fatqyauvtl mu 6eyoioa, au toe toatl to taA eofli joa Function: Wine And Cheese Social Date: October 29, 1986 Time: 7:00-9:00 pm Place: Carolina Inn Ballroom C Open to all Seniors society, will hold a tour of the anatomy labs by Dr. Hensen. UNC Students for Healthy Living will meet in the Health Education Section on the second floor of Student Health Services. 7:30 p.m. The Association of Polit ical Science Students will meet in the South Gallery of the Union. Chimera will meet in 220 Union. 8 p.m. UNC Young Democrats will meet in 224 Union to discuss election day plans. UNC Jazz Band will per form in the auditorium in Hill Hall. ifams of Interest Registration forms for "Assessing Your Style: Situational Leadership" .are due today, Oct. 28. Contact the Office of Leadership for more infor mation and turn in incomplete forms to Lenora Johnson. Student Television is now accepting applications for "Love Match," U NCs version of the "Dating Game." Pick up applications at the Union desk or the STV office (Suite D of the Union). Due by Oct. 29. Attention English majors! Advi ser's appointment sheets for prereg istration for Spring 1987 are posted on the bulletin board across from 212 Greenlaw. The Student Stores, in cooperation with the Art Club, is displaying student artwork on a monthly basis in the Art Supplies department. Applications are now being being accepted for the Great Decisions 7 coordinating committee. Information and applications available at the Office of International Programs in Caldwell Hall and at the Union Desk. IsflEylSjiiaisita CHJNe5 RESTAURANT 790 Airport Road, Next to A&P FREE EGG ROLL AND CHICKEN WINGS Join us for Lunch on Tuesday or Wednesday and receive a FREE Appetizer with purchase of any Lunch Special. Choose delicious entrees from our 34 item special I'jnch menu. Lunch Specials include choice of three soups and ricelo mein for only $3.57 plus tax. This week's appetizers are: Tuesday Egg Roll, Wednesday Chicken Wings Thursday Egg Roll LUNCH ONLY " OPEN 7 DAYS A WEEK FOR LUNCH & DINNER SPECIAL FAST LUNCH MENU FULL TAKE OUT SERVICE BANQUET FACILITIES & (GAM Business Opportunity Summit "p the package, a real process of the elimination of nuclear weapons would have got underway," Gorba chev said. "The situation after the Reykjavik meeting, in spite of the well-known provocative actions of the U.S. administration and the gross misre presentation of what , came to pass at the Iceland meeting, still offers opportunities for a search for solu tions," he said. In accusing the United States of "misrepresentation," Gorbachev apparently was referring to the dispute over what he and Reagan had tentatively agreed to at the summit. There is no argument that both sides wanted to reduce strategic nuclear weapons by 50 percent over five years. But Gorbachev and Reagan now argue over what they said they were willing to eliminate in the five years after that. Gorbachev has said Reagan agreed to the elimination of all strategic weapons during the second five-year period. But Reagan has said he agreed to eliminate only ballistic missiles fired from land and sea, leaving some cruise missiles on heavy bombers. , WE'RE FIGHTING FOR YOUR LIFE American Heart Association S j r mJ I s 5 5 S 1 Weekly Dinner Specials Mon.-Fri. 11-2:30 Lanch Sat. & San. Noon -2: 30 Luch Saa.-Taars. 5-9:30 Dianer Fri. & Sat. 5-10:30 Diaaer Call 967-6133 FOR RESERVATIONS & TAKEOUTS ALL ABC PERMITS WE CAN MEET YOUR DIETARY NEEDS UPON REQUEST BDJE
Daily Tar Heel (Chapel Hill, N.C.)
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Oct. 28, 1986, edition 1
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