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Show Page C2 THE HERALD, Provo, Utah, Thursday, November 1, 1990 still avoided taxes Americans Some rich WASHINGTON Despite repeated government efforts to close loopholes, some wealthy Americans are still able to scrape together enough deductions to avoid paying any U.S. income tax, the Internal Revenue Service said Wednesday. Of 557,848 couples and individuals who reported income of $200,000 or more on returns filed in 1988, 472 with total income of $211 million paid no income tax. Two of them, both unidentified, even reported receiving unemployment compensation. Of the people who paid taxes, about 9,300 paid less than 5 percent. Another 17,082 reduced their liability to less than 10 percent, which is about the same as paid by the average $35,000-a-yefamily. In its annual report on the tax e liabilities of people, the IRS said 53 percent of those with income of $200,000 and up (AP) high-inco- ar high-incom- mi m reported capital gains profits from the sale of Investments that averaged $384,476. By comparison, salaries averaged $291,646. The study, prepared principally by Men H. Lerman of the Treasury Department's Office of Tax Analysis, is based on raw tax returns. Some of the could be moved onto the tax rolls following IRS audits. The report said 3,396 people with high incomes would have avoided federal income taxes altogether had it not been for the alternative minimum tax. This levy a special net designed to ensure that people pay some tax regardless of how many legitimate deductions they claim cost 35,223 top earners a total of $1 billion. However, the reach of the minimum tax plunged from the previous year, when the levy took $4.8 filbillion from 158,903 ers. One of the provisions Congress high-inco- high-inco- 1 - - 3 n wrote into a major bill last week to raise the tax burden on the rich boosts the 21 percent rate of the minimum tax to 24 percent. Under orders from Congress, the IRS has been reporting the tax e Amerisituation of cans since 1977. In that year, there were 53 returns reporting income of $200,000 or more and no taxes paid. Although several changes in the law were made in an effort to o from shieldprevent the ing their income, the figure grew to 613 on returns filed in 1986. On 1987 returns, 595 had no tax liability. Through the years, the number of tax-fre- e rich people has been only a tiny fraction of the wealthy. The most recent IRS report showed the 557,848 taxpayers in the group paid a total $72.7 billion, an average of $130,276 apiece. deficit-reductio- upper-incom- well-to-d- The report said 381 'rJ - WASHINGTON (AP) The new budget carries a pledge from top Democratic lawmakers to try to spend b.'Uions of dollars more for black colleges and inner-citprograms. It also makes it easier for Holocaust survivors to get Medicaid nursing-hom- e aid. y people who paid no tax claimed itemized deductions totaling $161.3 million, an average of $423,000. Altogether, 149 claimed itemized deductions that exceeded total income. The most popular deduction was for interest paid, which exx ceeded income on 29 of the 472 returns. Income was exceeded by deductions for theft, fire and other casualty losses on 12 returns. Here are some of the income and deduction items reported by the 472 who paid no tax: 179 claimed business losses totaling $22 million while 71 listed business profit of $14 million. Farm losses of $12 million were reported on 29 returns; only 4 1 reported farm profits, totaling $137,000. language site 15 Surpass Partnership losses lion were shown returns. On the of $123 milon 256 untaxed other hand, reported partnership profits of million. 73 $23 for minorities by at least $8.8 billion over the next three years. The leaders promise an effort to target science and energy research and education initiatives to traditionally black and Hispanic colleges and universities. They say they will try to set up a new federally backed bond program for new construction at the schools, of which there are about 120, mostly in the South. 228-20- 0. "Escape artist" Laurice breathes the fresh air of free- dom after his escape from a safe that he said had been welded shut before being submerged in the Hud- - son River Wednesday in New York. It toom him five and a half minutes to shed hand-hug- e cuffs and padlocked steel chains and make his escape, Tunnel linkup may help project's coffers - LONDON (AP) Now that British and French diggers have linked up beneath the English Channel, a project executive said Wednesday he was more confident of raising the billions of dollars needed to finish the rail tunnels. "People now believe that the tunnel can be done under the channel and the construction risk is perceived as hugely reduced," Alastair Morton, deputy chairman of the Anglo-Frenc- h consortium Eurotunnel PLC, said by telephone. "Everything is in place now for completion of the project" in 1993, he said. Diggers working from the English side in one of the three tunnels punched a hole through to the French side Tuesday night, three years after work began on the world's largest current civil engineering project. The breakthrough came on the service tunnel, the smallest of three bores, and it will be two months before that tunnel reaches its full 15.7-fodiameter. The first of the two rail tunnels between Folkestone and the French port of Calais is expected to be linked up next year. Eurotunnel timed a new share offering, intended to raise $1.03 billion to coincide with the breakthrough, Morton said. The success of the share sale is a condition for the release of an additional $3.9 billion in loans from banks, which already have put up billion. Investors already have bought $1.94 billion of Eurotunnel stock. The tunnel now is estimated to cost $14.9 billion, up 57 percent from the initial estimate of $9.4 billion in 1986. $9.8 ot le Eurotunnel is expected to open in June 1993 and carry passengers, cars and freight between London and Paris in three hours. It expects to carry 28 million passengers in the first year. Morton said he was confident the share sale would succeed even though it was taking place just before the government plans to sell $7.8 billion worth of stock in Brit ain's electricity industry. The giant stock sales are being launched in a stock market that has been jittery because of the slowing British economy and the Middle East crisis. Many investors have been sitting on the sidelines and trading volume has been low. Morton noted the Eurotunnel sale already has been underwritten by investment firms, and expressed confidence that investors have plenty of cash on hand. The project has no government support, and Eurotunnel has said it doesn't expect to pay dividends for years. However, the stock offering includes inducements such as travel discounts. Price liberalization that begins today in Romania puzzles folks Romania (AP) -Rin long lines at stores Wednesday, hoping to stock up the day before a tough economic reform package frees prices on basic goods. But the wait was in vain. Bucharest stores were nearly empty, and shoppers who joined snaking lines for the few available items were angry and confused by the planned chanties. Mo.st grumbled about lack of information on the reforms, and few believed they would yield quick results. Car owners waited up to 10 hours at gas stations, despite guarantees that gasoline and ether energy prices would not increase. BUCHAREST, omanians waited Economics Minister Eugen Dijmarescu promised that the price liberalization Thursday would not affect the cost of housing or basic foodstuffs. But he did not specify which prices would be raised or by how much, adding to the confusion. Such information was available, but apparently only on request. Commerce Ministry official Gheorghe Oana told a reporter that prices of milk, bread, sugar, meats and other staples would not rise before Jan. 1. But some food prices were to rise the national currency was to be Thursday, with a kilogram (2.2 devalued Thursday by more than pounds) of carrots going from four 50 percent to encourage exports. lei (about 11 cents) to 10 lei, for The rate will be 35 lei to the dollar. With the reforms already in example, he said. On request, the Commerce Minisplace nibbling away on earnings try' provided figures reflecting a and wage increases still only a doubling of prices Thursday for promise, some Romanians feared clothes, public transport and furnithe worst. "All I know is that life is no ture, among other items. Footwear and leather goods were to triple, longer affordable," Ioana Ionescu, and postal and phone rates to rise a cook, told a reporter. Another woman, working in Buby about 70 percent. But most Romanians had no accharest's only laundromat, said she cess to such information. makes 2,300 lei a month, and the "I'm upset we are being kept in average wash now costs a fifth of the dark fur so long," one Buchathat. rest man said. "This is not at all She charged that government arwhat we were led to expect in the guments that prices must go up to election campaign." reflect market realities is merely a The National Salvation Front, coverup, a view at least partially which took power in the December shared by some experts. revolution that ousted Communist "In the short term, companies dictator Nicolae Ceausescu, promare continuing the old habit of ised slow reforms end social proraising prices to cover inefficient tection. But after the Front won production and losses," said Stefan Boboc, of Bucharest's Economic overwhelmingly in May elections, Premier Petre Roman sped up Studies Academy. But potential public rage over reform. In July, legislation was passed on price hikes is likely to be muted because many goods available on indusselling failing state-owne-d tries. month the government paper at low official prices have in fact been lacking for years, except slashed their credits and energy for a much higher price on the subsidies. black market. In addition to the price reforms. Ist 1! I" Is U R u is 17 i p manages is 27 28 12 11 30 31 3? 25 29 28 35 34 33 M 37 36 MM 30 11 23 21 20 jio 1 A 17 Ibsen's Helmer 18 Sing softly 19 Faucet fault 20 Yarmulke 22 Smudged 24 Letters 25 Never-faili- R " 16 Barely - 1 0 i 49 42 ng 26 Bicuspid's neighbor 46 4S 29 Keep in mind 33 Get out of (provoke) 34 Manhandled 35 36 Budget item 37 More modest 38 Active 39 "A Chorus Line" number 40 Act the harpy 41 Seraglio 42 Shoppers' T" 4 47 51 50 55 sT 61 62 52 SJ 57 S 51 " x aVi A delights 1990 Tiibune Media Services, tnc Rights Reserved 40 Went down for 5 Bowling liras? 6 Of the ear 7 Traffic sign 8 Altar words Talk turkey Sole Plant Oriental drama 11 50 54 55 57 58 59 60 Great smiler Addict Raccoon kin 12 13 21 Byway 23 TV horse Blue-pen- cil Tear apart Golf score Lalique 61 Family 9 Buyer 10 Shop with coupons Gumbo Golda Glimpse 49 Flex Sabra's dance 50 Thaumaturgist 41 43 Pumpkin and melon 44 Bottled spirits 46 With rage 47 Certain Asian 48 On the briny 51 Brainstorm 52 Carol 53 To (precisely) 56 Regatta - requisite Today's Puzzle Solved 25 Sutured 26 Chocolate 62 Low cards 63 Wise 27 28 29 30 DOWN 31 members S3 AM 44 45 46 47 substitute Hippodrome Forty Marsh birds Book jacket promo Art supporter 1 Fires 32 Play 2 In a frenzy crambo 3 Lima lano 34 Fake 4 King David for 37 To wit 38 Brooks one Hnno3wanism often Deadwood does well in first year of gambling - The DEADWOOD, S.D. (AP) take has surpassed everyone's expectations in the year since slot machines and card games became legal in this Black Hills town founded during the gold rush of the 1870s. R-P- Great escape h 13 i by I. Miller di-d- ah ed AP Laserphoto Al 10 Eternal City 14 Iowa State U. no-ta- Other provisions only now comn ing to light in the massive measure lay aside assistance for Americans fleeing Iraq and Kuwait, create a cash award The Democrats also say they will named after a House committee to increase spending on foreign try chairman for protecting coastal to Africa; housing; urban deland, and provide money for cer- aid tain centers to treat patients with velopment; education, health, child-car- e and anti-gan- g programs AIDS or Alzheimer's disease. in inner cities; welfare; job trainThe items are among many little-noticing and veterans. details lawmakers stuffed House Majority Leader Richard into the package of tax increases said Tuesday Gephardt, and spending cuts that Congress that the language had nothing to do passed Saturday before adjourning with the hunt Democratic leaders for the year. The measure was the made last week for support for the main thrust of an effort to slash budget, which the House approved the federal deficit by $496 billion over the next five years. "A number of our members, black and white, felt we wanted to Hiding obscure provisions in major bills has become such an art make investments in certain form in Washington that gadfly areas," he said. is offerone But Rep. Alan Wheat, Rep. Curt Weldon, of 24 House Democrats in the ing dinner for two at a Capitol Hill restaurant for anyone who brings Congressional Black Caucus, said one to his attention that benefits the provision was included after five or fewer people. negotiations between black law"The clever way the language is makers and House leaders. Much written, you might never even see of it came from the budget the it or realize it's there," Weldon caucus proposed earlier this year, Wheat said. complained Wednesday. No one has yet unearthed a "Most of us wanted to find a way to support the Democratic leaderprovision in the budget that benefits such a small number of people. ship" and vote for the budget, But there are items that target Wheat said Wednesday. Ten of the black caucus' memparticular groups or locales. The report accompanying the bill bers voted for the bill and 13 voted contains an unusual promise by no. Walter Fauntroy, the delegate Democratic congressional leaders from Washington, D.C., has no vote to try to increase federal spending on the House floor. deficit-reductio- ACPOSS or Andy 5 Computer high-inco- Budget pledges more aid for black programs wmmm- Crossword Players wagered more than $253 million, and about 75 gaming hous- es were licensed during the first 11 months of limited-stake- s gambling in the town where Wild Bill Hickok was gunned down in an 1876 poker game. "This is the best thing to happen to tourism in South Dakota since Mount Rushmore," Franklin Hotel owner Bill Walsh said. Actors dressed as Hickok and Calamity Jane will fire guns on Main Street at noon Thursday to celebrate the first anniversary of legalized gambling's return. A year ago, state and city officials estimated Deadwood's share of gambling taxes and license fees could give the city about $500,000 a year to be used to restore aging buildings. The city has already received $6.2 million as its cut of the first year's action. Gambling taxes also have contributed nearly $786,000 to the state and more than $196,000 to Lawrence County. A statewide vote in 1988 amended the South Dakota Constitution to authorize Deadwood gambling. The Legislature limited bets to $5. Don Gromer, executive secretary of the state Gaming Commission, said officials expected up to 20 gaming halls with 300 slot machines and card games to open in the first year. By September, the 75 gambling halls had 1,900 slot machines, 91 blackjack games and 27 poker games, he said. The gambling industry has created about 1,400 jobs in Deadwood. Industry officials estimate casinos already have spent more than $30 .- -- 'CmVi .vis if htf million to renovate historic downtown structures. Success came with a price, however. State and city officials have scrambled to keep tabs on the rapid growth, which has caused parking problems and strained water and sewer systems in the narrow city built in a canyon. Retail stores have nearly disappeared from Main Street as buildings have been converted into a long stretch of casinos to handle crowds of gamblers. It also has brought a more hectic lifestyle to what was a quiet, uncrowned town. Among the changes: An association of gaming halls has helped support a local program that helps gambling addicts. of one casino was The shot and killed in September in what authorities said was an apparent attempted robbery. An Air Force sergeant was charged with murder. Mayor Bruce Oberlander said many people are upset that it's no longer easy to find motel rooms, parking spots and uncrowded bars when they visit Deadwood. But they don't realize the businesses were struggling to survive before gambling drew crowds, he says. "If we hadn't done this to Dead-woowe wouldn't have had a Deadwood," Oberlander said. "It's a changed Deadwood. ... But I think we've kept a lot of the mystery or romance of Dead-wood.- " er Walsh said people who mourn the loss of the old Deadwood are holding a wake for the wrong corpse. The city's best period was the boom times of the frontier or the early years of this century, not the recent years when businesses made money during the summer tourism season and then tried to hang on during the colder months, he said. I I 17" m f''. Halloween dinner Airman First Class Kurtis Crawford of York, eats a dinner of beans and barbecued chicken Wednesday in Saudi Arabia, surround- - AP Laserphotu ed by decorations. The Air Lift Control Ele-Pa- ., ment from Maguire Air Force Base in New Jersey served the dinner for Halloween. |