Congress approves tax cut
WASHINGTON (UPl)—The House and Senate last
night approved by largely party-line votes and sent to
the White House a $24.8 billion anti-recession tax cut
packagvintended to boost the buying power of nearly
every American.
Lopsided votes of approval in both chambers belied
strong Republican misgivings displayed in debate and
test votes, an indication President Ford might be on
sate ground should he choose to veto the broad package
of tax rebates, reductions and bonus payments.
The Senate, voting after the House, sent the measure
to Ford on a 45-16 roll call vote. Thirty-four Democrats
and 11 Republicans voted for -the bill while two
Democrats and 14 Republicans voted against it. The
late hour—it *was nearing midnight when the Senate
acted—reflected considerable absenteeism due to
Easter recess due to begin today.
In the House, final approval i was 287-125, with 232
Democrats and 55 Republicans ..voting yes and 43
Democrats and 82 Republicans, voting no. The com
promise measure would provide $2O billion in tax cuts
and bonuses to individuals-80 per cent of it to those
earning tinder s2o,ooo—and $4.8% billion in business tax
cuts and incentives.
With $2 billion in increased Treasury revenues from
reduction of the roil depletion, allowance and other
business tax changes, the net cost would he $22.8
billion—well within the tolerance Ford set for its
pricetag.
But Murmurings of a possible veto emanated from
the White House before the congressional votes, and the
.urprising strength of House Republican op
ponents—they came within 17, votes of sending the
compromise back to House-Senate con-
Thieu goV't crushes coup
SAIGON (UPI 1 —President Nguyen
Van Thieu's government announced
today it had 'crushed an attempted coup
and arrested a number of "short
sighted" persons who plotted the
overthrow
On the fighting front, the United States
and South Vietnam began a land and sea
attempt to resuce a million persons from
the isolated city of Da Nang far to the
north of the capital and the Viet Cong
lag was hoisted over the captured city
of Hue.
A government spokesman in Saigon
said of the coup attempt: "These
elements have been arrested and further
investigations are being carried on."
The announcement came from the
interior ministry—charged with internal
security—and not from the presidential
palace. •
Rumors of a coup attempt by dissident
generals and officers dissatisfied with
Thieu's military leadership in recent
days 'had been making the rounds in
Saigon. It was assumed that the leaders
of the coup were military men, hut there
was no confirmation.
Thiew food to the , national radio twice
N esterday to order his battered army to
Candidates
By LAURIE PEACHER
Collegian Staff Writer
Food seemed to he on everyone's mind
last night at the Undergraduate Student
Government eanthdhtes night in South
Candidate Joe Seufer outlined his
plans for a mean system similar to
Syracuse University. This plan allows
htudents to choose any of four plans at
varying prices, he said, giving students
the opportunity to skip meals and not
pay for them. A plan also was included
for commuting students. -
Candidate Doug Ford pointed out that
the dining facilities at Syracuse are
operated by a catering service. Penn
State operates its own service.
Advocating another type of alternative
meal plan, candidate Dave Perlman
Nominee
GOV. SIIAPP with Philip Kalodner, his nonlinee for chairman of the Public Utility
Commission.
Collegitht
the
daily
ferees—suggested a veto would easily be sustained.
The recommital motion was defeated 214-197 with 204
Democrats and 10 Republicans voting against it, while
70 Democrats and 127 Republicans voted for it.
In an earlier series of voigta votes the House refused to
delete a $5O bonus for Sodilkl Security beneficiaries, a
tax credit for new home buyers or a temporary ex
tension of unemplo ment benefits.
Republican objeWns centered largely on the bill's
pricetag, with opponents declaring it would stimulate
the now abating inflation.
Sen. Paul Fannin, R-Ariz., one of the conferees who
worked out a compromise with the House in three days
of tough bargaining, called the compromise an im
provement over the original Senate bill but said he was
"still concerned about the revenue loss" to the
Treasuily.
The oil depletion repeal was one of three or four which
President Ford strongly opposed in the measure, the
biggest tax reduction in American history.
Soon after an outline of the bill reached the White
House. an aide said of Ford: "He's pretty hard-nosed.
He may veto the tax bill."
Press Secretary Ron Nessen said Ford will take
several days to decide whether to veto the bill or sign it.
"There is no clear view of what he will do," Nessen told
reporters.
Ford, Nessen said, had relayed to the Republican
congressional leaders his "serious concern over the
astronomical spending proposals moving through
Congress now." So, Nessen added, "He has to weigh the
tax bill against these spending proposals."
Senate Finance chairman Russell Long, D-La., told
halt its retreat and stand and fight the
"final and decisive battles of our
history."
Communist troops bombarded tens of
thousands of refugees and soldiers cut
off near the coast. They were the tail end
of a convoy that started to evacuate the
Central Highlands two weeks ago, taking
Communist fire much of the way.
The massive air evacuation of Da
Nang, bursting with refugees, was en
dangered the day it began when 14
Communist rockets blasted the fringes
of its airport, killing six persons and
wounding 34 others, military sources
said.
Civilians were evacuat4. from the
district town of Hoi An, 15 miles south of
Da Nang, where government troops dug
in to prepare for an imminent Com
munist attack.
An estimated 10,000 government
troops and civilians, all that remained in
the evacuated city of Hue, surrendered
yesterday without a fight as Communist
tanks rolled into the city, military in
telligence sources said.
Military officials said the Communist
discuss alternate meal plans
said students should he refunded for
meals they do not eat. He said students
could arrange with the meal service
alter they knew their term schedule to
skip certain meals.
"The food service of the University
made $1.5 million last year," he said, in
response to an accusation made at an
earlier USG debate that his idea was
more expensive. Perlman questioned
where this money went.
Ford said he thinks every candidate
for the past three years had brought up
the alternative meal plan and that it had
never been carried out. ARHS has
researched it, he said, and found it
impossible.
In addition to the food problem, the
candidates were asked what they
thought USG's role with the University
troops sprayed the Central Highlands
refugee column with heavy artillery and
'small arms fire after sappers destroyed
a bridge on Route 7 and cut off the
refugees' - retreat to Tuy Hoa on the
coast, 240 miles northeast of Saigon.
The vanguard of the convoy, originally
consisting of 250,000 persons, made it to
safety, military sources said.
Planes and boats started carrying the
first of Da Nang's refugees. out as the
last hundreds of thousands or others
fleeing from the north were still
arriving.
The U.S. embassy yesterday began
evacuating dependents and non
essential personnel from its consulate in
Da Nang, along with other Americans
and foreign nationals.
In Saigon, Thieu's order of the day,
read over national radio, instructed his
troops to "at—all costs interdict the
enemy advance" and take the initiative.
"Fellow loldiers, the war is coming to
its crucial and decisive phase and you
arc fighting the final and decisive battles
of our history," he said.
But military sources said they doubted
the government could hold Da Nang,
South Vietnam's second largest city and
should be. All candidates agreed that
USG should represent the students.
- How can there be student
representation when the students won't
even register for the Senate?" Perlman
asked. Earlier in the evening Perlman
criticized South Halls students for not
hmiing the required number of can
didates for their Senate seats.
South has only one candidate running
for two Senate seats. Perlman also
mentioned that only 16 of the necessary
17 students have filed in the town area.
"We must have an effective
organization to get anything done,"
Perlman said. .
Candidate W,.T. Williams said, "You
don't support a government, you support
your leaders because that's what the
government stands' for."
Candidate Stanley G. Miller suggested
a cooperative association through USG
to provide low-cost items, to students his
answer to what USG'd role should be.
Miller said he is' not sure he is a can
didate because he hasl not paid the
Kalodner nominated as PUS chairman
HARRISBURG (AP)—Governor
Shapp has nominated his special con
sumer adviser, Philip Kalodner, as
chairman of the Public Utility Com
mission.
sumers before the regulatory agency,
would succeed Republican PUC
chairman George Bloom, who retires
April 1.
The nomination, announced yester
day, is subject to confirmation by 34 of
the 50-member Senate.
Shapp also said he will ask the Senate
to consider the nomination of Herbert
Denenberg to the five-member PUC.
Shapp asked the Senate Democratic
leadership to hold up the confirmation in
January when it appeared Denenberg
could muster no more than 27 of the
necessary 34 votes. A rejection would
have forced Denenberg off PUC.
At the time, Shapp said Denenberg
should he given a chance to performon
the commission before the Senate made
its decision.
"Hopefully, we'll get a couple more
Democrats and enough Republicans to
get Denenberg confirmed," Shapp said
yesterday.
When pressed on whether he was
certain Denenberg had enough votes
now, Shapp repeated, "hopefully, we'll
have the votes."
AP wlrephoto
reporters: "I don't think he's foolish enough to veto this
hill."
The bill contains $B.l billion in 1974 tax rebates of $lOO
to $2OO for almost every taxpayer, $7.8 billion in 1975 tax
cuts, special one-time $5O payments to every social
security beneficiary, and special payments-up to $4OO
for the working poor.
There also are special amendments including a
temporary 13-week extension of unemployment benefits
and a special tax break of up to $2,000 for purchasers of
new homes which were under construction or com
pleted hut unsold before yesterday.
Overall, for the average couple with two children,
counting both rebates and new cuts, the bill would
mean a $3OO tax break at $3,000 income; $496 at $5,000;
$5lO at $6,000; $312 at $8,000; $258 at $10,000;$290 at
$15,000; $320 at $20,000, and $220 at $30,000.1
As a general rule, anyone with an income above
$30,000 would get only $lOO rebate plus a special $3O tax
credit for the taxpayer and every member of the
family.
The 1975 tax cuts would be reflected in lower payroll
withholding rates beginning May 1, and rebate checks
would begin flowing April 15, congressional staff
members said. The Internal Revenue Service said
earlier it would take 45 days to begin the flow of checks.
It was uncertain when recipients of Social Security,
railroad retirement and supplemental income for the
working poor would begin receiving their checks.
The 1975 tax cuts were decided by the negotiators at
the end of their last session. The cuts would involve
increases in the standard deductions, used by thoSe who
do not itemize deductions, plus a special $3O credit for
the taxpayer and every member of the family.
attempt
its last bastion on the northern coast
A chartered World Airways Boeing 727
made the inital evacuation flights. U.S.
officials said it would be replaced later
in the week by a large Boeing 747,
stripped to the'floorhoards to carry up to
1.200 passengers.
Officials said they hoped to evacuate
up to 25,000 refugees a day to reset
tlement camps. at Cam Ranh 'Bay, a
deserted American base on the coast 185
miles northeast of Saigon.
The refugees are expected to be
eventually taken to the coastal provinces
of Khanh Hoa. Nin Huen and Binh
Thuan, still considered relatively
secure.
Abandoned barges formerly used to
transport food, fuel, and ammunition to
Phnom Penh, Cambddia, were under
tow by three tugs and were expected to
arrive tomorrow.
To the north, Communist tanks rolled
without opposition into Hue, the ancient
imperial capital of Vietnam and citadel
of resistance in the 1968 Tet offensive:
A Viet Cong military spokesman in
Saigon said the red, blue and gold Viet
Cong flag was hoisted in central Hue "in
the face of welcoming Hue citizens."
necessary $2O tiling tee to USG.
Candidate Marie Blosh said USG ,
should be an "umbrella organization" to
coordinate all University groups.
Students should be actively involved on
decision-making boards, she said.
"We (the . students) can give all the
advice we *ant but without the vote it
doesn't make any difference." -
Candidate Mike ("Dirt") Bahry was
kidnapped temporarily by a group from
the Beaver Penthouse as he presented
his opening statements. A spokesman
for the group said, "Dirt will he cleaned
up and the problem won't exist
anymore."
Amidst applause, candidate Harry
"Eli" Cain thanked "All the people in
North Halls for making the debate last
night so successful. That's our apathetic
stronghold," he said.
The USG debate in North was cancele,d
last night because only campaign
workers and candidates attended.
Shapp said he never talked to
Denenberg about the chairmanship.
Denenberg had made strong gestures
that he wanted the job.
Kalodner, 44, who has served as PUC
counsel and in various consumer ad
vocate roles in the Sahpp ad
ministration, will bring a needed
balance to the PUC, the governor said.
The commission sets rates for elec
tricity, water and other utilities.
"The overwhelming feeling is that the
PUC has been industry-dominated for
too long," Shapp said. "Some of that
feeling on the part of the public is cer
tainly going to be felt by the Senate in the
confirmation process."
Kalodner said he viewed his role on the
PUC as an adjudicator between the
interests of the consumer and the
utilities.
For the time being, the PUC has to
play the role of judge and prosecutor, he
said.
"One can be concerned with both sides
and play the proper role," Kalodner
said.
His appointment will not mean an end
to all rate increases, he noted.
"I would not say to you that rate in
creases can be eliminated under
anyone's leadership."
Kalodner said he would reorganize the
Ten cents per copy e • •
Thursday, March 27, 1975
Vol. 75, No. 137 10 'pages University Park, Pennsylvania
Published by Students of The Pennsylvania State University
Tree planting
STATE COLLEGE MAYOR Jo Hass hands a shovel to Connie Faust (13th
elementary education) who yesterday helped in planting a Katsura tree in College
Parklet donated by the Organization of Town and Independent Students to the
borough, while Denise Collier (12th-social welfare). center, and Sheilah Tucker.
(6th-human development). right, lend assistance. .
Kissinger: Aid
would destroy
WASHINGTON ( UPI )—Secretary
of State Henry A. Kissinger said
yesterday a cutoff in aid to Indochina
would amount to destroying an ally
and would have "serious con
sequences" for the United States
throughout the world.
"If you do not give enough,"
Kissinger told a news conference, "it
brings about the consequences we
now see" in which Communist forces
have captured wide areas of South
Vietnam and surrounded the Cam
bodian capital.
Kissinger said that for 15 years "we
have been encouraging the people of
Vietnam to defend themselves" and
that this carries with it a respon
sibility to assist in that effort.
"The question now' is whether we
will deliberately destroy an ally by
withdrawing aid," he said. If the
United States abandons South
Vietnam at this time of critical need,
he added, "it will have very serious
consequences for the United States in
the world."
Also involved, Kissinger said, is
"the elementary question of what
kind of people we are."
Kissinger fielded questions on
Indochina shortly after Gen.
Frederick Weyand, Army chief of
staff, left fdr South Vietnam under
orders from President Ford to assess
the military situation and report back
some time next week.
Meantime Sen. Robert Griffin, R-
Mich., criticized Congress for stalling
on Ford's request for $522 million in
additional aid to South Vietnam and
Cambodia, claiming as Kissinger did
a U.S. obligation in that regard.
"There are in South Vietnam today
several million people who, in one
way or another, hve openly opposed
the Communists,'lT Griffin said in a
prepared Senate speech. "Many of
agency to speed action on rate requests
Senate Democratic floor leader
Thomas Nolan said yesterday there is no
way the Senate will confirm Denenberg
as a member of the PUC.
Nolan added that he did not think Gov.
Shapp's latest nomination to the PUC,
consumer advocate Philip Kalodner,
could win confirmation either,
Nolan. who heads the Rules Com
mittee. ,said yesterday that conditions
have not changed since then and
Denenberg's nomination will still be
defeated. Such an outcome would force
the fiery consumer advocate off the
PUC.
"The governor did not discuss with me
or any other leader of the Senate to my
knowledge the appointment of Denen
berg or Kalodner...," Nolan said.
"i think that When the governor sees
fit to sit down and discuss the ap
pointments with the leaders before he
announces the appointments he's going
to be further ahead."
Nolan said the senators already have
an unfavorable view of Kalodner. He
refused to elaborate.
Nolan, an Allegheny County
Democrat, said he was angered by
Shapp's apparent refusal to consider
former Sen. Thomas Lamb for the PUC
chairmanship.
Photo by ..achy O'Donovan
cut
ally
them took their. position atter we
convinced them that the United
States would stand by them."
Even as the pleas for aid continued.
Sen. James Abourezk. D-S.D.. in
troduced two amendments to block
the President's request for $3OO
Million in supplemental assistance to
Saigon.
Instead of handing out another $3OO
million U.S. tax dollars to Vietnam,"
said Abourezk. "we ought to he taking
decisive action to battle our domestic
economic problems that are growing
more serious with th&passing of each
day."
Kissinger said when the United
States withdrew its forces from South
Vietnam in exchange for return of its
prisoners. "there was no question
that we would continue aid" so that
the Saigon government could fight on.
He denied, in response to a
question. that U.S. policy was in
consistent in helping battle Corn
rti unist forces'in some countries while
seeking detente with others. "On that
theory," he said dryly, "we can give
up all of our alliances."
Kissinger said he did not believe the
nation's Indochina policy had been
"immobilized" by the impasse
between the administration and
Congress on the aid issue
"It is a philosophical disagreement.
[t is overwhelmingly in our national
interest to put the debate on
Indochina behind us," he said.
Kissinger noted that "the ad
ministration has proposed a three
year program to phase out U.S.
military aid to Vietnam." and said if
Congress will go along "it will
remove the issue from the yearly
congressional and executive battles."
"If the levels of funding are
adequate." he said, "we can get the
debate behind us."
Nolan said he wrote the governOr in
November and lobbied on behalf of
Lamb, who, according to Nolan. would
he willing to accept the post.
Shapp said at the news conference that
he had not contacted Lamb, Nolan's
predecessor as floor leader.
A Senate defeat, of Denenherg could
- open a vacancy for Lamb.
Nolan said he feels Shapp is throwing
Denenherg to the wolves.
"I - think he (Shapp) has fulfilled all his
promises to Mr Denenberg and is now
ready to throw him overboard," Nolan
said.
"My conversations with the Senate
indicated I would not he confirmed ; "
Denenberg said.
"I have to assume that if the governor
puts my name out he's sure I can be
confirmed." he added. _
Senate Republican floor leader
Richard Frame could not be reached for
comment.
Weather
Sunny but quite cold. High today 43.
Clear and very cold tonight. Low 23.
Increasing, clouds and not as cold
Friday. High 48.