OCR Text |
Show County Official Blasts Projects That Erode Taxes By JOSEPHINE ZIMMERMAN Herald Staff Writer Utah County Commissioner Kenneth J. Pinegar leveled a strong blast a public-owned housing during an interview Tuesday Pinegar says he and his fellow commissioners have abated $60,000 in taxes for housing units owned by Provo Citythis year, and next year it will be about $80,000 “Provo City's School District is asking for a leewayvoteto increase taxes, yet the Provo City Housing Authority has 150 housing units which are not paying laxes. Atleast 7 percent of those potential taxes would go to the school district,” Pinegarsaid. He estimated the amountoftaxes : housing unit would be about If these units were privately owned, they would be contributing tax money to thecity,” he said. Henoted that ProvoCity has units for the elderly and for families and more are on the drawing board He explains that the elderly always can get abatements on their taxes, but some tax mone; paid. When the taxes are abated. you and I haveto pay thedifference,” said. he Pinegar says heis chairman of the Utah County housing Authority and until recently, the authority has granted subsidies for housing He says the housing authority now 13 goilg to build 10 publicly-owned housing units in Orem, in coopera tion with Orem City ‘I opposed the public housing, but the housing authority voted forit sid recently acquired a subdivis: it will eat us up general populous doesn't unde: that it is cutting away at o base,” he said This is an empire-builder It could be built into such an empire it will eat us up. These units could be built by private outfits with sub- Sisting of seven more lots public housing develop Pinegar also critici: n Provo's Downtown Improvement District which alsois subsidized by thetax- payers, he says Through this type of bonding, the GOP Mavericks Want to Speed Tax Cuts WASHINGTON(UPI) — Now that President Reagan has abandoned Kemp, R-N.Y. his balanced budget goal for 1984, a Toup of maverick House Republicans has decided thata little more red ink wouldn't hurt. two stages of the already-approved tax cut for individuals. Rep. Robert Walker, R-Pa., announced Tuesday that he and 19 other true believers in ‘‘supplyside’’ economics — including leading tax-cut proponent Rep. Jack — will introduce legislation to accelerate the next The first 5 percent across-the- board tax rate cut took effect on Oct. 1, The next two steps of 10 percent each are scheduled for July1 1982, and July 1. 1983 Walker and his colleagues, who argued that the economy needs the tion this year, fearing it would serve as a vehicle to dismantle someof next two tax cuts up six months — the special-interest tax breaks in from July1 of 1982 and 1983 to Jan. 1 of those years this summer's $750 billion tax-cut the number of LDS Church welfare farms operated by ou! 4 -county stakes Salt Lake County stakes buy farms in Utah Cos take the package. House Democratic Leader Jim Wright of Texas said ‘‘It makes property off the said the chances of approving the expensive tax-cut acceleration dur more sense to delay the tax cut the mill levy down,’ he stated Hesaid he believes the farms should be on the tax rolls and under Congressional sources however. ing thelast six weeks of the year are I think the budget is going to be in extremely slim such a demonstratively dire shape leaders oppose any new tax legisla- would belittle support”’ for the plan Theyalso noted that House GOP by (early next year) that there is. and we must make upthedifference. If they wereon the tax rolls, we could keep Greenbelt (the Utah Farmland As: sessment Act) U.S. Asks ibsifHerald Che: BYU-Utah Topic of TV Request getting the NCAA to release the game from the by-laws restricting football coverage.” The NCAA hasa rule governing broadcasting of gamesin a 120-mile radius which would conflict with other signals covering the ABC regional or national games. Last year the game wastelevised with the understanding translator stations in southern Utah would be turned off and not receive the signal. That never happened. 10@fH YEAR, NO. 94 PROVO, UTAH, WEDNESDAY, NOVEMBER18, 1981 $5.50 MONTH—PRICE25 CENTS Soviets To Join in Arms Cuts WASHINGTON (UPI) — President Reagan, speaking to “the people of the world.” today challenged the Soviet Union to join the United States in a mutual, across-the-board reduction of arms — starting with nuclear weapons in Europe The president, in a speech beamed to a global television audience, outlined a four-point plan for comprehensive arms BYU Approves Stadium Bids Bids to excavate the playingfield of Cougar Stadium were approved Tuesday by the University Appropriations Committee. A ground-breaking ceremonywill be immediately after the BYUUtah football game Saturday. taxes created by deve nt will go back into the development district They'll pay only the same property taxes as they do today Pinegar says another thing eroding Utah County's tax base in added tax cut stimulation now want to move the effective date of the Wednesday: KTVX, the ABC television affiliate in Salt Lake City, is seeking rmission to broadcast the BYUtah football gamelive this Saturday from Cougar Stadium, according to Pat O'Donnel, director of news and special projects. The station has received permission, according to O'Donnel, from 'U and is awaiting NCAA approval, “We're ready todo it. We nave tne people to doit. It's just a matter of Ip He says Provo Housing Authority cancer erodin conceme talks — including cuts in both strategic and tactical nuclear weapons, a reduction of military Officials will dig up turf with shovels in the ceremony, then the Cougar Band will lead a procession of bulldozers and backhoesonto the field forces in Europe, and eliminating the risk of atomic holocaustfrom surpriseattack or miscalculation. For related story, see Page 3. Reagan said he had just sent Soviet President Leonid Brezhnev a letter. “It’s a simple, Personal Income Up, Spending Falls WASHINGTON (UPI) — Thepersonal income of Americans rose 0.6 percent in October, the Commerce Departmentreported today, a surprisingly strong increase duelargely to interest income. At the sametime. spendingfell as consumers apparently increased their savings as the first phase of the new tax cut program tookeffect. Personal incomewasup $14.3 billion for the month,hitting an annual rate of $2.47 trillion. All figures were seasonally adjusted at annual rates. straight-forward. September's personal incomeincreased 0.7 percent, a slight downward revision from the originally reported 0.8 percentrise, the departmentsaid. Interest income from investments in money market mutual funds andcertificates of deposit accounted for 43.4 percentof the total increase in personal incomefor the month. In‘contrast, manufacturing wages “Success can only come if the Soviet Union will share our commitment, Reagan began his National and salaries fell by 0.7 percent and commodity industry payrollsfell by 0.3 percent. UPI Telephoto. Senate Panel OKs B-1 Bomber Spending Frustrated Lawmakers Adjourn Frustrated Utah legislators haggled for six hours on reapportionment, but then decided to adjourn the special session until Friday, giving Senate Republicans a chance to regroup and decide whether they will support the Housein overriding the governor’s veto of the House redistricting bill. An override resolution passed in the House, 50-20, but it took three ballots and considerable armtwisting by GOP leaders in the lower chamber. Some Senate Republicans were reluctant to support the House and others were absent,so party leaders agreed to adjourn for three days. In other special session action, legislators amended the state's industrial revenue bonding law See stories on Page 12. Fair Skies Should Return Fair skies are expected to return to the Central Utah area, replacing the storminess that spread over muchof the state Tuesday night. Before the storm moved in, a record high of 68 was reached Tuesday afternoon. here is a chanceof patchy fog in the lower vallies late tonight and early Thursday. Overnight lows are expected to be in the mid-20s with vee Thursday ranging from 45 to Fair weather also is forecast tonight and Thursday for Utah in general. Where ToFindIt Comics .... Community Notes . 2 Crossword National-International Obituaries Opinions Sports Today .. +37 +26 A 35 69 +» 1516 yet historic message: The United States proposes the mutual reduction of conventional, intermediate range nuclear and strategic forces.”’ Reagansaid. “But we cannot reduce arms unilaterally,’ Reagan said Members of the U.S. Senate's Appropriations Committee discuss a defense facts-sheet during considerations of President Reagan's record defense budget. Paisley Requests ‘Do-or-Die’ Stand BELFAST,Northern Ireland (UPI) — Firebrand loyalist Rev. Ian Paisley called ox Protestants to- dayto ‘do or die’’ to defend Ulster, but Britain flew 600 moretroopsto the province and warned it would crack down on private armies the same wayit has on the IRA. Amid the worstcrisis in Northern Ireland since 1974, Britain ordered 600 extra paratroopersto the province to bolster its force of 10,849 soldiers and all police leave was canceled The move met a mixed response from Protestants, who blamedlax security and closerties with the Irish Republic for the assassination Saturday of hard-line memberof Parliament Rev. Robert Bradford. About 500 men, manyof then masked, paraded in army fashion through Londonderry Tuesday night The committee voted to retain more than $2.1 billion for the B-L manned bomber program. From left are Sens. Mark Hatfield, R-Ore.; Jake Garn, R-Utah, and John Stennis, D-Miss. Press Club speech. being broadcast around the world satellite by saying he wanted to speak to “the people of the world about America’s program for peace and the coming negotiations which begin Nov. 30 in Geneva, Switzerland’’ on reduction of medium-range nuclear weapons in Europe. “Today I have outlined the kinds of bold, equitable proposals which the world expects of us,"’ Reagan said. ‘Great Smokeout’ Hopes To Reach 18 Million Users NEWYORK (UPI) — Eighteen million smokers expected’ to join the American CancerSociety's 5th Great A:aerican Smokeout will grind out their last cigarettes at 12:01 a.m. Thursday — and try to makeit for 24 hours without anothercoffin nail. About5 million of them madeitall the way last year. Those taking the torture trail will be cheered on by an array of special events, helped at smokers’ crisis centers buoyed by families, sweethearts and co-workers. Smokeout has such strong appeal. the Cancer Society said because it makes smokersthe center of attention and becomes a sort of ‘‘be kind to smokers day.”’ Anotherreasonis that. deep down, most smokers. wantto quit. the Society said. citing a Galllup study that last July showed 66 percent would liketo quit. However, about37 million of the nation’s 55 million puffers will continue to light up, In Maryland. the support system forthose joining smokeoutwill include adopt-a-smoker plans which call for non-smokers to back up smoking acquaintances with ‘‘constant encouragement and low calorie nibblers.”’ In Boston, “the world's strongest man,”’ John Wooten, will take on teams of rugby players. newsmen, respiratory therapists and other groups in a series of tugs of war. Pyramid, Ladder Frauds Burn Those at the Bottom Editor's Note: This is the fourth in a series of articles about various types of fraud schemes which have been operating in Central Utah. By JOSEPHINE ZIMMERMAN Herald Staff Writer With pyramid marketing schemes, the last people joining it havelittle chance of success. “The problem with pyramid marketing schemes is the very quick saturation of the market. It meanspeople coming along on the bottom are going to get burned,”’ explains Betty Engemann,director of the Better Business Bureau of Utah County. She reports that several illegitimate marketing schemes are being promoted in the area right now. One recent scheme involved a man investing $2,000 with $600 going to buy a diamond, and $1,400 to the company. The man then wasurged to bring in two friends, for whom he would receive $150 each, and he would move upto ‘‘supervisor.”’ He then could bring in four more friends, get $25 for each one and move up to “sales manager.’ With four morefriends, he would receive $50 for each and moveup to “broker.” As a broker, by bringing in eight more friends, he would receive $900 for each of them. His total profits would be $7,800, which, deducting his initial investment and taxes, would give him a $5,000 profit in three months The company nowis reported to be de-emphasizing diamondsalesin favor of high protein spaghetti, pasta, and drinks. “You have 19 people,all trying to enlist 19 more people, who are trying to enlist that many more. Initially, it totals 361 people.’ Mrs Engemannsaid. Allen Robinson, training officer for a long - established life in- surance company, says he had contact with one marketing scheme which involved six levels. “They call it a ladder; it’s not a pyramid now, it’s a ladder," he says An individual must pay a $25 membership fee and invest another $25 in the “‘ladder’’ to get in. “As an individual moves up the ladder, he is able to purchase merchandise at a lesser and lesser percentageovercost, and thussell it at a greaterprofit. When he reaches the ‘gold’ level he can purchase them atcost,’ Robinson says. Hesayshefigured the arithmetic involved in that six-level scheme and found it would require the participation of 759,000 people to get one person to the ‘‘gold’’ level “In other words, you'd have to enlist every man, woman, and child in Utahin orderto get two people to the gold level.’” Robinson, a Utah County native who worked several years for the state, says he was shocked at the comearound.’” “It isn't expressed that way, but that’s really whatI see in this val- general attitude of people in Utah ley,"’ he says. Valley whenhe returned three years ago. Othe peopleI seein this business are looking for something for nothing. They are looking for easy money that somebody is going to makefor them,”’ he said Robinson says people don’t seem to realize, or care, that somebody hasto give up moneyfor them to get the easy money. There seemsto be nofeeling for the person at the end of the line. There again,it’s usually yourfriends.” “If you have the morals that church people are supposed to have, it’s pretty hard to accept that attitude,” he commented. He says he worked for a short time for a man whose philosophy was, “You've got to cheat your friends because your enemies never BrentBullock,investigatorfor the Utah County Attorney's office, says most marketing and pyramid schemes cometohis attention after the fact A recent schemeinvolved anoffer to obtain an exclusive franchise to market chocolate products in Utah County — for $2,000 to $3,000 investment. Bullock says the investor received an official - appearing paper, then had no communication with the promotersfor a time. The next contact involved an offer to buy two machines for $1,500. The machines wereto be shipped from the factory. “When the machines were not forthcoming,the investor called the company and talked to the president, who said the machines had been such a red-hotitem that there was a backlog. The president asked the investor to wait four to six weeks for delivery.”’ Bullock says the telephone had been disconnected when the waiting period was over, and an investigation showed the company actually had been out of business four months, “What amazes meisthat it is so difficult to make money, and so easy for people to give it away,” Bullock commented. Another sales schemereported to the County Attorney's office involved a manputting $60,000 into an operation. For collateral, he received rights to a Louis XVI urn, but when the schemecollapsed, it wasfound that the man who put up the urn as security actually had no rights to it . “Thefirst golden rule is to check before you invest your money,” Bullock advises, |