Committee to work out details of tax-cut bil
By JIM LUTHER-
Associated Press Writer
WASHINGTON (AP) When a Senate-
House conference committee gets together to
agree on the final details of President
Reagan's tax-cut bill, the talk will not be on
how to help the poor or bolster the economy.
The big question will be whether to give the
oil industry $47 billion worth of special relief,
$2O billion or something in between.
There is no difference between the House
and Senate bills on the basic tax-cut issues:
Individuals will get a 25-percent reduction in
tax rates over the next three years. The two
houses likewise are in virtual agreement on
how to reduce business taxes.
But it was oil benefits that produced a
dramatic victory for Reagan's plan in the
House on Wednesday and it is the size of those
oil benefits that will determine how quickly
the conference can complete its work. .
If all goes according to schedule, the
conference will start its work today and some
Cuts could fuel inflation, professor says
By DIANNE GARYANTES
Daily Collegian Staff Writer
President Reagan runs a high risk of
increasing the inflation rate if Americans
spend the money gained from the tax cuts
passedby Congress on Wednesday, a
University economics professor said.
"I haven't read (Reagan's) proposals,"
Philip A. Klein, professor of economics, said.
"(But) I know he runs a very big inflation
risk if people spend their tax money instead
of saving it."
Reagan's argument for his tax package is
that the tax cuts will lead to increased
savings, which will give banks more money to
be used for loans to businesses. This would
kive businesses financial leverage to build
and expand, creating more jobs and a
healthier economy.
The tax package passed by Congress
includes a 25 percent across-the-board cut in
personal taxes that will span over a three
year period. The plan will cut taxes by $750
billion over the next five years.
However, Klein said he thinks the cuts are
not needed and that Reagan is more
concerned with reducing government
itl7l,6lv'ement-in the nation's economic system,
excepCdefen,se spending, than reducing
inflation.
"You don't need to reduce taxes for three
years if you are as concerned about inflation
as you are reducing the size of the'public
sector (government involvement)," Klein
said.
"There is a more than ever chance that the
Catch a short wave
Go to school, join a club, call home to
your folks, pretty normal sounding stuff
Ddn Jeanblanc of Havre de Grace,
Maryland, did just that except the club
he joined was the Amateur Radio Club, and
when he called his folks in Texas, it was via
shortwave.
Jeanblanc, W3ITM to friends, is a
civilian employee of the army participating
in the four-week Executive Development
Program. He used his walkie talkie-like
unit to get in touch with the club and joined.
Another participant in the program also
joined and has called his wife, who is a ham
operator in Costa Rica. The pair has also
tried to make a phone patch for yet another
participant in the program from Bogota,
Columbia, to his wife by contacting a ham
radio operator in Bogota and having him
call her on the phone and patching the call
through his transciever, in effect a long
distance phone call.
One of Jeanblanc's calls to his parents in
Texas was more than an hour long. "Quite
an expensive phone bill," he noted.
The club exists because students are not
allowed to operate ham radios in the
dorms, according to Bruce Mckee, club
treasurer pictured in the background.
Opinions on new advising policy vary
By DAVID PALFREY
Daily Collegian Staff Writer
The University's system of academic advising
has undergone changes recently, but many students
and faculty members have expressed
dissatisfaction with it.
Legislation passed in the spring by the University
Faculty Senate re-defining the roles of advisers and
advisees affects all students by removing the
adviser's approval/disapproval power and by
allowing students to schedule courses even if the
adviser does not agree with their selections.
In a survey of academic and extracurricular
activities of seniors of the class of 1980, a full• one
quarter of the respondents rated their academic
advising as poor.
The survey, conducted by the Office of
Residential Life Programs and the Student
Assistance Center with the help of the Office of
Student Affairs, focused on the attitudes, reactions,
opinions and development of students before
graduation.
In its summary of major findings, the report,
concluded seniors were not satisfied with academic
advising - and thought the system should be changed.
One problem with the program may be that
"many faculty do not perceive academic advising
as a terribly important fuction," said Stephen J.
Wright, senior academic adviser in charge of
General Arts and Sciences and director of the
Student Advising Program for the College of The
the
daily
congressional leaders say the handfull'of
differences can be resolved in one day.
Others in Congress doubt the final
compromise bill can be delivered to Reagan
for signature into law before the middle of
next week.
Before the conference can even start its
work, the Senate will have to have a formal
vote on the tax bill. That vote, usually taken
routinely. was delayed until today so Senate
and House leaders could free for final action a
second part of Reagan's economic program:
a huge budget-cutting measure.
The budget bill was cleared for action today
after being held up most of the day yesterday
by Democrats who oppose a provision in it
that would eliminate minimum Social
Security benefits for 3 million elderly
Americans.
The Senate endorsed its version of
Reagan's tax bill Wednesday in a
preliminary 89-11 vote. Chief among the 16
basic differences between the Senate version
cuts could be inflationary," he said. "The
point is, there's no need to have cuts now."
John Paul Devereaux, assistant professor
of accounting, agreed with Klein that the cuts
could be inflationary.
"Any time you cut taxes, it leaves more
money in the hands of the people," he
explained. "I would think most people would
be in lower tax brackets and they may spend
it on necessities. The upper tax brackets may
save."
Devereaux said there are more people in
the lower tax brackets who will be spending
than there are in the upper tax brackets who
will be saving which is inflationary.
"I think we're looking at some tough times
ahead," he said.
The opinion of others differs from this view.
U.S. Rep. William F. Clinger Jr., R-central
Pa., voted in favor of the tax package, said
Mark Heuer, Clinger's press secretary.
"(Clinger) feels the cuts will improve the
economy,"' Heuer said. "There is a part of
the package that offers relief for small
businesses, which will improve the business
in State College.
"In terms of input, we got over 100 phone
- -calls (about.the tax bill)," he said. "The calls
were in favor of the bill 9-to-1."
When asked whether the tax cuts might be
inflationary because of people spending
rather than saving, Heuer said that Clinger
did not think that would happen.
People hayed saved their money when
taxes have been cut before, said Elmer G.
Grant, president of the State College branch
Liberal Arts
Chris Hopwood, president of the Undergraduate
Student Government's Academic Assembly,
agreed.
"A lot of faculty members don't perceive their
role as an adviser period," Hopwood said. "If you
get a professor who doesn't want to advise, I don't
care what kind of system you have, it's not going to
work."
John F. Kavanaugh, chairman of the Faculty
Senate Committee on Academic and Athletic
Standards, said there is not a consistent University
policy for evaluating advising,
Although advising plays a part in tenure
consideration, the pressure exerted by some
colleges on untenured faculty to do research and
win financial grants often outweighs advising
obligations, Kavanaugh said.
The recommendation for the changes approved
by the senate was made by the subcommittee on the
role of the adviser.
The subcommittee stated in its report that the
new policies and procedures are meant to resolve
discussions started in September 1978 about a
report, made by the Administrative Council on
Undergraduate Instruction, that:
• Proposed that the role of advising, be defined
as consultative in nature.
• Defined the specific responsibilities and duties
of adviser and advisee.
• Suggested that all University forms and
Ole • ian
and the Reagan plan accepted by the House is
the question of how much tax relief to channel
to the oil industry.
The oil provisions grew out of the 1980
"windfall-profits" tax, which Congress
enacted at the request of the Carter
administration. The new tax, which oil-state
lawmakers oppose vehemently on grounds it
handcuffs the industry, takes for the
government a share of the hundreds of
billions of dollars in oil-price increases that
result from ending government regulation of
oil prices.
Congress agreed late last year to let an
estimated 2 million royalty-owners people
who own the land from which oil is pumped
avoid up to $l,OOO of the "windfall" tax. The
Senate Finance Committee, in writing its
version of Reagan's tax-cut bill, voted to
raise that credit to $2,500 and make it
permanent. The panel also agreed to
gradually cut in half the tax on "new" oil.
Please see OIL BENEFITS, Page 12.
of Central Counties Bank.
"With most of the tax cuts in the past, some
has gone to consumption, but we've had a
substantial increase in savings," he said.
Grant said he believes the cuts will
gradually ease inflation with this increase in
savings.
"Over the last few years, we've stifled the
savings rate," he said. -"You just can't build
new equipment without the money.
"The one thing that the people must face is
that the rich have money to save, not the
poor," he added.
At CCB, 30.3 percent of the savings
accounts hold $l,OOO or more, accounting for
92 percent of the total dollars in savings,
Grant said.
This is opposed to 37.4 percent of the
savings accounts holding $lOO or less, which
accounts for 0.5 percent fo the total dollars in
savings.
Also, 2 percent of the checking accounts
have $5,000 or more and account for 16
percent of the total money in checking, Grant
said.
"If you take from the rich and give to the
poor, you destroy savings," he said. ,
The tax cuts will help,stimulate grog th and
provide an incentive for savings, said Ken
Denaree, resident manager of the State
College office of Merrill Lynch, Pierce,
Penner and Smith Inc.
"My feeling is that you will see an increase
in savings," Denaree said. "I feel the Reagan
administration believes in the package. I do
also."
policies be revised to reflect the consultative nature
of advising.
In addition, the subcommittee said these changes
were intended to clarify the functions and
responsibilities of advisers and students.
But the subcommittee stated that the emphasis on
the consultative role of advisers should not be seen
as reducing the importance of advising. .
As rationale for the changes, the subcommittee
cited rapidly changing occupational definitions,
concern for increased student retention, and legal
claims by students against universities.
The senate directed that the approved changes be
incorporated into all relevant sections of Academic
Policies and Procedures for Undergraduate
Students, and that all relevant forms, including pre
registration, N 0.2 card and pass/fail, be revised to
indicate adviser/advisee consultation, agreement
or disagreement and student acceptance of
responsibility for the proposed action.
Section 32-10 states the role of the academic
adviser is consultative in nature and final decisions
relative to course scheduling and program planning
are the responsibility of the student advisee. It notes
that advisers and students may not always agree
and makes provisions for these cases.
Section 32-20 lists the functions of the adviser in
five categories: information giving, short-range
program planning, long-range planning, conveying
the purposes of the University and student referral.
Section 32-90 lists the advisee's responsibilities. It
4 41avf',
4.p"
•
President Reagan points toward reporters as he and James Baker, White House chief of staff, walk across
the White House lawn to a waiting helicopter. The president flew to Atlanta.
states that the student has the primary obligation to
meet program and degree requirements and, when
required, must consult with the adviser and obtain
the adviser's signature as evidence of consultation.
The advisee should also keep an up-to-date check
sheet of requirements fulfilled, inform the adviser
of changes that will affect educational goals,
preregister each term, be familiar with academic
rules and regulations, and discuss with the adviser
unsatisfactory academic progress.
The option of self-signing, which allows a student
to sign required forms such as drop/add, pass/fail,
and preregistration, is offered in some colleges. But
this is only granted to 9th-term or higher students at
the discretion of each college.
Kavanaugh said there had been a question about
responsibilities in the advising process and the new
legislation will make things clear to adviser and
advisee.
"It's for each college to decide its policy on
advising," Kavanaugh said. The College of The
Liberal Arts has offered the option of self-signing
for several years, he said.
"It is my understanding that it's (self-signing)
been good for liberal arts."
But Wright disagreed: "I don't like the self
signing option because even for upperclassmen the
flexibility allows for problems if a student is
careless in choosing courses."
, :* , 1....':.-'..' .
..-,'''fi'•:',..::.,4,;.1.;i
~:~; .
~~ ~
:a -
Extradition sought
for Iran's rani-Sadr
By SCHEHEREZADE FARAMARZI
Associated Press Writer
BEIRUT, Lebanon (AP)
Demonstrators chanting "Death To
Mitterrand!" ringed the French
Embassy in Tehran for three hours
yesterday and the Iranian government
demanded that France extradite
fugitive ex-President Abolhassan
Bani-Sadr to Iran for trial.
There was no immediate reaction
from French President Francois
Mitterrand.
Tehran Radio said the Foreign
Ministry gave the formal extradition
request to French Ambassador Guy
Georgy for transmission to Paris. It
charged Bani-Sadr with theft and
embezzlement of public property,
being an accomplice to inflicting
bodily harm, and spreading false
Please see STUDENTS, Page 5
15C
Friday July 31, 1981
Vol. 82, N 0.24 14 pages University Park, Pa. 16802
Published by Students of The Pennsylvania State University
is gtooss
reports and accusations, the radio
said.
The French national radio France-
Inter said "several dozen" people
camped out in front of the embassy
yesterday evening. The embassy staff
left the building through a side door
without being pestered, it said.
Sources in Tehran said by telephone
earlier there were about 250
demonstrators outside the French
embassy. But a Tehran police
spokesman said there were 30,000
demonstrators and more would show
up today.
When told the small street where the
embassy is located could hardly hold
that number of protesters, the
spokesman insisted on his version
• Why do so many students
stay in Happy Valley during their
supposed summer vacations?
o Penn State defensive end Lar
ry Kubin signs a three-year con
tract with the Washington
Redskins Page 6
• Fire caused extensive dam
age to a South Pugh Street house
yesterday afternoon Page 14
Some nice weather is in store for
the weekend, starting with a sunny
and comfortably warm day today
with a high of 83. Tonight will be
clear but not as cool as the paM
two nights, with a low of 59. Con
tinued sunny and warm tomorrow
with a high of 85. Fair and mild
Saturday night with a low of 64.
Sunday will be partly to mostly
sunny and continued warm but a
bit more humid with a high in the
mid 80s. Fair and mild again Sun
day night with a low in the mid 60.
Please see IRANIANS, Page 12
inside
weather
Page 5