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Show Vol. 226, No. Salt Lake City, Utah 91 January Thursday Morning Price 13, 1983 Twenty-Fiv- Cents e to Offer Tax Overhaul. By Owen Ullman Associated Press Writer WASHINGTON President Reagan plans to ask Congress in his State of the Union Message to overhaul and simplify the federal income tax code by lowering rates and narrowing deductions, administration sources said Wednesday. The proposal, described by one official as long-termajor tax reform, is expected to be one of the major themes in the address Reagan will make to a joint session of Congress on Jan. 25, according to the sources, who did not want their names used. The sources said Treasury Secre- tary Donald T. Regan has been push- - rt Jh i' H 4: ? :; $ ? ? I m the ing idea within the administration. Asked Wednesday if Reagan had gotten behind the the tax proposal, I don't Regan told reporters, know. . . . The president has not given me his final decision in the tax field, nor would I comment further on what suggestions I make to him. However, during a speech to a business conference sponsored by The Washington Post, Regan called for streamlining and simplifying the federal tax structure to strengthen and expand the nation's economic base. He added that only o the can afford the lawneeded to figand accountants" yers ure out the current complex tax well-to-d- code. Streamlining, Simplifying Regan also said that any serious attempt to reform that code will bring out special interest groups like flowers bring out bees. The officials said Reagan has no specific plan in mind, preferring instead to develop some firm proposals with Congress. But they said the thrust of his thinking is along the lines of proposals that have become known as flat-rat- e income tax plans. Under these plans, personal income tax rates are lowered but the amount of income subject to taxation is increased because of a r,ar- - 0.4; Retail Sales Off Industry Delays Modernization Plans WASHINGTON (AP) - U.S. retail sales dropped 0.4 percent last month in a lackluster Christmas selling season, the government said Wednesday. And a separate survey showed that executives, still uncertain about economic recovery, are planning to cut back spending on expansion and modernization for a second straight year. The sales decline from November was clearly due to the expected slackening in car sales after Novembers robust performance. Overall sales are expected to rise at a moderate pace in coming months, helping, though hardly lead- ing, the expected economic recovery. However, if business executives hold capital spending to the levels indicated in the separate Commerce Department survey, it will mean such spending will provide little, if any, help in pulling the nation out of the long recession. Christmas Season Commerces sales report said overall retail sales dropped to a seasonally adjusted $92.3 billion in December after surging upward by 2.6 percent in November. The figures were adjusted to discount the fact that sales always shoot up during the Christmas season. However, both November and December actually would have shown 0.4 percent and moderate gains 0.5 percent if volatile auto sales were excluded. Analysts said special deals led to the big November increase, and Decembers figures looked bad only by comparison. Sales by auto dealers dropped 4.1 percent in December after rising 12.5 percent in November. Retail sales for all of 1982 totaled $1.07 trillion, up 3 percent from 1981, the report said. No More Jobs Meanwhile, Alice Rivlin, director of the Congressional Budget Office, said at a congressional hearing Wednesday that even if the economy recovers at the modest pace the forecasts, Reagan administration there will be little or no improvement in the jobless rate for more than a year. If recovery begins in the first quarter of 1983, for example, building to an annual real economic growth rate of 4 to 5 percent, unemployment could still remain above 10 percent through early 1984, she said. Later, in response to a question, she predicted the jobless rate wouldnt drop below that figure until It takes substantial growth to get unemployment down, she said. Commerces survey on capital spending plans, taken in late November and December, found executives estimating a 5.2 percent decline this year after discounting for spending due only to increased prices of materials and labor. That decline would be even sharper than last years 4 8 percent, which was the first drop since the 1975 recession. However, taken together, the 1982-8decrease would still he a bit short of the 11.5 percent 1975 plunge, according to Commerce figures. mid-198- 3 Todays Chuckle Man to attractive date: Tell me your dreams, your hopes, your dimensions." Government and private economists agree that factory owners are unlikely to expand operations or spend much money updating equipment until they are sure the recession is ending and there will be a market for goods produced with the new equipment. But administration officials and many private analysts as well say at least modest recovery is indeed near at hand if not already here. Commerce Undersecretary Robert Dederick, commenting in a statement distributed by aides, refused to be downhearted about the new estimate. rowing or elimination of deductions, such as for medical expenses, state and local taxes, mortgage interest expayments, business-relatepenses, charitable contributions and a variety of miscellaneous items. d Popular Deductions Members of Congress have expressed general interest in overhauling the tax system in such a way. Politically, however, there is serious doubt about whether Congress would be willing to eliminate such popular deductions as mortgage interest payments on homes, interest on municipal bonds and similar items. The sources said Reagan finds the pt approach appealing because it would simplify the tax code and low- tax rates. er the marginal The idea also has its appeal to ad- ministration officials seeking ways to reduce chronic government deficits now estimated at $200 billion a year or more. That is because a tax overhaul could be designed to eliminate deductions in such a way as to increase overall revenues despite a cut in tax rates. Supporters of the revisions argue that the current system is too complex and unfair, allows deductions of primary benefit to affluent Americans, and encourages people to cheat on their taxes. A simplified system with lower tax rates could stem abuses and encourage people to invest their income in economically productive ventures. Boon to Wealthy Opponents counter that a move toward a flat-rat- e system could still prove a boon to some wealthy people, while raising taxes for middle-incom- e Americans. The term flat-rate- " means Associated President Reagan announces nomination of Margaret Heckler, left, as secretary Replace Firing Squads Heckler To Join Cabinet Death by Injection OKd by House For Capital Crimes dif- ferent things to different people. In its purest form, all deductions would be eliminated and everyone be taxed at one rate as opposed to the current progressive system, under which the percentage of taxes an individual pays rises as income rises. Some proposals, in fact, call for a flat tax of 20 percent or less. But there seems little support for that, and any overhaul likely would retain a progressive rate feature. By Dan Bates Tribune Political Writer Showing mercy to criminals on one hand, but getting tougher with them on another, the Utah House of Representatives passed bills Wednesday to offer death row convicts execution by lethal injecton and to require judges to justify or- - - ders depriving restitution to victims of crimes. A lethal dosage of sodium thioor another "equally effecpental tive substance" may soon replace slugs administered by a firing squad under House Bill 19, sponsored by Rep. Tom Christensen, and adopted by representatives 67-The measure now goes to the Utah Senate. During House floor debate Wednesday, dissentient members said part of capital punishments g effectiveness is defeated unless executions are violent crime-deterrin- and even turned into media circuses. One Way to Do It think you can only kill a guy one time and theres only one way to do it, said Rep. George L. Gygi, Valley City. Utah is the only state out of the 36 that have capital punishment statutes that relies on death by a firing squad, Rep. Christensen said. Although a volley of bullets is an effective way to separate body from spirit, he said, lethal injection is more humane and contemporary. How much consideration should we give them (condemned prisoners) on mercy? Rep. Gygi asked. Theres no sense in making this a mockery of sensible human beings, Rep. Christensen replied. This only makes (executions) modern. A survey showed that 64 percent of Utahns favor execution by lethal injection, he said. The concept was Assocloted Press Loserphoto first proposed to the Legislature in 1981 and was supported throughout session until it was buried by that Artists concept of a multi-bod- y Center. the Reseachers say transport design would other business in the waning hours. aircraft studied jointly by the Lockheed-Georgi- a offer potential weight, performance and Rep. Christensen said the injecCo. and National Aeronautic and cost advantages over conventional singletions would diminish the chance of error or delay in death, eliminate Space Administration Langley Research body aircraft, plus be more fuel efficient. the "media event of executions and even cost the state less money to administer. It (lethal injections) is very important to some people, especially if theyre involved," he said. The bill requires two or more trained technicians to participate, thus reducing the stigma that one person was resimilar to sponsible for the death one rifle loaded with a blank shell on By Blaine Harden they flew. We had never flown in Street bridge. There, hovering incha firing squad. Washington Post Writer anything that nasty," Windsor says. es above the river, they saved four Tut Reasons in Writing WASHINGTON In that brief They could only see if they looked lives. Unknown Hero terrible interlude, after Air Florida down. They found the Southwest The criminal victims' restitution an Air Florida bill, passed by the House 63-The last hero Flight 90 punched into the frozen Freeway and followed it to the 14th river and before the final death, five passenger whose identity is still unWednesday and sent to the Senate, men discovered themselves heroes. certain grabbed a helicopter res- would force the states judges to incue line that had been dropped for clude in writing their reasons behind Survivors clung to wreckage with him and helped pass it to other granting or forgoing victim comshattered arms and legs, screaming survivors. for help as the Potomac pensation in sentencing orders. leeched their strength. When the helicopter finally reHouse Bill 66, sponsored by Rep. turned for him, he was gone, pulled Nolan E. Karras, As others watched helplessly, two was Dr. Barney B. Clark continued to to his death by twisting, sinking amended by men dived into the Potomac. I was representatives Wedne-danot going to turn my back on those improve Wednesday, his 42nd day on wreckage. to also permit judges to double The courage that flared a year the monetary damages a victim poor suckers," Roger Olian recalls. the artificial heart. The retired SeatHe struggled in the water for 20 tle area dentist took his first steps ago Thursday in the desperate mincould collect from an offender. In minutes and nearly drowned trying without the aid of a walking device. utes after the crash was an astonishaddition, the measure would prohibto the to reach the survivors. The other it restitution obligations from being the ing, at of counterpoint ennobling Physicians University Utah Medical Center still list him in death of 78 persons. Whats more, dismissed in bankruptcy rulings. man, Lenny Skutnik, saved a drowning woman. I just did it," Skutnik serious but stable condition, but they much of it was on television. Images Rep. Karras said judges already and accounts of heroism flashed have the authority to order compenexplained later. say his rate of improvement is inaround the world, touching millions sation for crime victims by their A U.S. Park Police helicopter took creasing steadily. of people. offenders, but several appear to igoff into a blinding snowstorm 14 Tests continued on the 61 year-old, nore that duty. In and weeks months the the after minutes after the crash. Pilot Don who may be able to leave the We think this will encourage Usher and paramedic Gene Windsor University Hospital within the next crash, the four surviving heroes See Page 2, Column 1 See Page 4, Column 1 could see nothing straight ahead as few weeks. I A Press Loserphoto of Health and Human Services and the resignation of Richard Schweiker, right. Plan for the Future One Year Later: Four Heroes Know Fame , But One Knows Only Death WASHINGTON (AP) President Reagan on Wednesday nominated former Rep. Margaret Heckler to be secretary of Health and Human Serand the third woman with vices Cabinet rank in his administration after Richard S. Schweiker resigned to head a lobbyist group. Mrs. Heckler, who was defeated in a bid for a ninth congressional term from Massachusetts last November, described thp new job as the hardest assignment in Washington. You have offered me the greatest challenge of my life, she said to the president in a White House ceremony also attended by Schweiker, who in quitting the HHS post became the fourth member of Reagans original Cabinet to resign. Mrs. Heckler, 51, is the second woman named to the Cabinet in a week, following Reagans choice of Elizabeth Hanford Dole to head the Transportation Department, and would be the administrations third woman of Cabinet rank. Jeane Kirkpost as patrick holds a Cabinet-leve- l delegate to the United Nations. The White House has acknowledged having a woman problem where women give the president lower marks than men because of his policies. The last election also provided evidence that women are more likely than men to vote for Democrats. Most reaction to the appointment of Heckler was favorable, and her confirmation by the Senate was considered certain. Mrs. Heckler will become responsible for a department with a budget of about $276 billion which includes Social Security, Medicare, Medicaid, public health agencies like the Food and Drug Administration, and major welfare programs. Mrs. Heckler is an attorney from Wellesley, Mass. She was defeated an by Rep. Barney Frank, incumbent, when they were thrown together in an election because the state lost a congressional seat in due to population shifts. She is the mother of three children and a Roman Catholic who strongly opposes abortions. public financing of On The Inside Tribune Telephone Numbers, Page A-- 2 - Clark Still OK In 42nd Day y 1 h 4 Totlajs Fort'cast Salt Lake City and vicinity Continued fair with clear nights. Highs in the 50s, Lows near 30. Details on F-- I |