European Stars And Stripes (Newspaper) - November 25, 1987, Darmstadt, Hesse                                Page 28 the stars and stripes wednesday. November 25,1987 Carlucci is sworn in As Secretary of def dose Iton a  or Alicd in new Secretary of defense Fuwk car Lucci owing Carlucci s swearing in a crony Monda Kaying that Carlucci is an i Der who knows a to gel results from congas and the burcaucrak1. I Carlucci who has been Reagan in National Security Advar succeeds Caspar Weij Purger who resigned Eaber this month  his wife s health. \ w holding Akhand on a Bible Hub by his wife Marcia Carluci was administer the oath of office by Federm appeals judge Dpi Renee is incr Nian in the roof vell room of up White House. Weinberger waa Mong the Guc fiscal be 88 with $30 Ellior deficit Washington Ulric Federal govern ment started its l9alisv year with a $30.7 billion deficit in Ocic Cythe largest monthly imbalance since  Depan ment said monday. The Treasury do Parvell report showed that inc government look id Crucs of $63.4 billion in october while Spca Fig s94.i billion. The resulting $30.7 billion Dikil contrasted with surplus of 115.3 Bill Insp tember when government receipts Wey Bol Sfred by quarterly lax payments. At least pfc die%5 Hurt in Alaska  Homer. Akka a a bin engine Corn Mil it plane washed and skin cd through a Fence while urn to land killing Fig people and injuring the be others aboard audio cities said tuesday. M the Nymair Beech Craft 1900 asked Mon Day night Clear skies and came Tau halt 200 Yards Fri Vehe runway Al Homer air Brt. The Khz originated in Kodiak Aid after a Stop in Slomer was to continue to Kenai and Anch doge 150 Miles North of Here. Up l said the injured some unc Ocious  to South Peninsula Hospital in Hor. Several were in critical Condi Tisci he saw and were flown to hospitals in Anchor ils Sile be a Levilo. We Are very  Shevat made speaking in russian of we have completed be very important work Uhink what we have done Imp the interest of All a nations on this planet. And Wel Jave no doubt the submit meeting we will have in Washingtn will be Succes Styf he called the Elcome of his Tab with Sulu which Culm Natch 2 a yeah Onego tiatia.  Shultz and  printed no details of How they overcame the  the Accord. Urs Over the two Days Ang mems while a team Day grappled with the by. The team was headed Sergei Fakhr Omeyer chief it with the two leaders " Shultz Saia said in Ard adze arriving h smiled and said iving 30 min Well finish it the two met for Al dealing at length Withof arms experts appoint remaining obstacles to i by Paul h. Nitzband m of the soviet armed it tuesday afternoon. Earlier tuesday separately for their Foj they were near agree we Are gelling Isles later Shiva re  j a morning Ming Between shul Ai. Lasted More Iha free hours followed by a and then the Al noon meeting. Both sides a monday characterised the struck inc 5�z department spokesman Man said if but Al earlier to Down yet red of said Sulu and Shevardnadze met twice Tola off hours monday. The bulk of the focused i Summit planning such As the schedule to Ingano  of the events he said. Evard adze no lunch con red official speaking on cond Ilion of and Lay said we Haven t Gol it a treaty Central Banks Cut interest rates Dnn a Central Banks in West Germany Mund inc Netherlands lowered interest rates tuesdaynhmtch�5traicd Afton to stimulate the West european a Comorn let us the erosion of the Dollar s value. The coordinated move a . Request came four Days after Washington announce deficit reduction pact that had been eagerly a its foreign trading partners. Or for. Tuesday s action boosted the dollars Tjw on for eign Exchange markets and Hal cd a follies in the . And european Stock  scarred by the crash a month ago.  on Page 27. Several analysts  appeared to be part of an International  economic growth and restore Faith in Thea Par following the oct. 19 crash. West gcrnai1$s Central Bank said it Cut its rate for Security  agreements from 3.50 percent to 3.25 potent the second drop since the crash. The rate is an important influence Jilli Fisher West German interest rates. " the Bank Quad put its Money Market intervention  Point to 8 percent White  Bank Cut its discount rate by 0.25 age Point to 4 percent. Market analysts said the moves could portend furl or european interest Rale cuts particularly a drop in rant West German discount rate. A with one of the world s mightiest Export  faced intense pressure from abroad to  especially follow ing the . Budget  reached in Washington last Friday. Domestic critics have also begun cafe it for expansionary measures aimed at stimulating the West Ger Man Economy. This would boost demand for goods from other countries and help Case the huge . Trade deficit. Inmates from Paga 1 Swindall a a. Federal officials refused to release any information. A television reporter sat in on negotiations Between authorities and four prisoners representing the approximately 1.500 cubans to assure that any agreement be made Public. The reporter. Marc Pickard of web to. Said inmates brought out the body of a prisoner who was shot apparently to bolster their Contention that guards and not other prisoners were responsible. Pickard said he was told inc inmates Are holding 75 hostages including two suffering from unspecified medi Cal problems. He said prison officials Are seeking the re lease of those two As a Good Faith gesture before giving the inmates a written Promise of no punishment Tor the uprising. In Louisiana inmates broadened their demands Mon Day seeking Freedom in the United states. Heavily armed officers continued to surround the 117 million Complex but Warden . Johnson said the cubans had threatened to kill inc hostages if police so mid their stronghold. A gel pose onnis holding for social Security and medicare which  up the Federal insurance contribution act Onica. Under the Olon Kail service retirement system the withholding rate is Tui percent for medicare. Under the new Federal Empl Hees retirement system the Rale is 8.3 percent i percent for medicare and 7 percent for social Security Chol paces Are not covered for social Security under the cd a which is Why they have the lower withholding rate. Navy officials claim they were Acyl own accordance with the new social Security Laws. After number of civilian employees complained the Navy cited to ask the internal Revenue service for Clari fic in. In March 1986, the irs issued an opinion stating t withholding on quarters allowances was proper. In october 1986, the Pentagon general counsel i reeled the other services to follow suit. The air Force began in january 1987. The army wiil begin with the last pay period in december. Him maintains there is no indication in the i social Security Laws that overseas allowances Jtj Jold now be considered wages for Pica withholding a clerk in the Navy comptroller s office reamed this up he said. When they got come wits they went to the irs and the irs came Baj pand said yeah sure go ahead and do it we would you expect them to say they want More  defense department officials said by Are using the irs clarification As the basis for of allowance with holding. The Taw is the Law on Kocial said. But him said the irs Tilte Junot the Law. It was an opinion issued by some  he said. It is not an irs regulation and it ism even a Revenue ruling. It s just an opinion that is binding in any Way and no Tine is obligated to up a it. The Pentagon can t seem to understand Hajj a spokeswoman Flifle irs said the intent when the social Security Laws kneed was that unless a specific exclusion is Grant by Law All income including in come derived film allowances is subject to Ria withholding. Obj season military personnel Don t have such withholds on their allowances is that there is a specific exclude for that she said. That jux simply in t the Case said him. The current la covering the Issue is the overseas differentials Andjulo ances act of i960, which states that Only Sasfy is taxable for Pica. The Senate report to that bar clearly states in no Uncertain terms that re Imbu cements for expenses which includes quarters allo Al acc Are not subject to fica  Ere is nothing in the new social Security Laws that supersedes that him said. Dod officials could Noi say whether word of the quarters allowance withholding is routinely included in the information Given to civilian applicants for overseas positions. We Haven t put Oul any guidance at that said a Dod civilian personnel policy of Wal. All the serv ices do their own advertising recruiting. They commonly refer 10 overseas twins allowance As tax free but they mean tree Fin Federal income us i Don t see a problem with a services telling applicants that they will receive a free housing allowance civilian personnel ideals for the services were also not sure what a punts Ere told. Navy and air Force officials said it i generally left up to the regional com mands and Ign civilian personnel offices to decide what to Tell an  said he would be sending a Mes Sage \o3foi overseas reminding them of the tact that the Faff will begin withholding next month and and visit nem to make Job applicants aware of the new Dod comptroller civilian personnel policy and in counsel s office have been reluctant to Corn in on the quarters allowance withholding. Officials deed All inquiries to the individual military serv ices Tsuming thai each does its own civilian personnel policy diking and payroll programming. While a services Are complying with the Dod order to Dulbe fica withholding on quarters allow ances official re not comfortable with the policy. We fought lev Long time against it said the air Force civilian a Emannul policy official. We re opposed because if Way someone si00 a month for housing that s for cd incurred and we just Don t think it s fair to  fica from that we re nol Al All sure twas the original intent of the social Security changes be said. Dod has directed us to do this so we re dog in but i would say it could definitely be called an Sion of an entitle  him Laid meanwhile Dod is paling out All this Money that has t been budgeted for cause As the employer Dod has to match whatever Pitr Bulion its employees make to  and when it is reversed which it will 1 we Are going to win Dod will have an  Nightmare because everything employees have hid in withholding on their allowances will have to funded he said. Him is sending a letter to the Dod comptroller the. Week stating that it s ridiculous to go any further with this policy until the court Case is resolved he said. The Justice department representing the govern ment in the suit has been Given until mid january to respond loan sea motion for summary judgment which would allow the judge in the Case to make an immediate decision