European Stars And Stripes (Newspaper) - October 7, 1989, Darmstadt, Hesse                                Page 28 / the stars and stripes saturday october 7,1989 House oks Bill to Cut deficit spending by the Washington Post Washington the House passed a 3-Inch thick Bill thursday that relics on accounting devices to create the appearance of meeting deficit reduction tar gets while containing numerous extraneous an sweeping changes in Law that have nothing to do with cutting the deficit. One provision in the 1,935-Page Bill requires the nation s Telephone companies to Transfer taxes to the Treasury a week earlier than they do now a Man Euver that would reduce the deficit for fiscal 1990, which began sunday by $102 million. But the change would add $102 million to the 1991 deficit. There arc at least nine such gimmicks in the House Bill which passed by a vote of 333 to 91. They account for nearly one sixth of the total deficit reductions it claims to make to meet the fiscal 1990 deficit target of the Gramm Rudman Hollings Law of $110 billion. They were adopted despite revisions to Gramm Rud Man Hollings made two years ago specifically to pre vent the use of such Maneu vers to meet its targets. The Bill passed thursday claims a deficit reduction of $1.7 billion by removing the . Postal service from the Federal budget thereby no longer counting the $1.7 billion it will lose this fiscal year. However this would Cost $570 million in fiscal 1991 because by then the postal service is expected to run a surplus from an anticipated increase in the Price of Stamps. The House version of the reconciliation Bill includes a provision to repeal the nation s catastrophic health insurance Law even though this would Cost about $4.8 billion in deficit reduction this fiscal year because the surtax and premiums to pay for the program already were being collected. It is not Clear that the Senate will support repeal but in the House the political pressure from the elderly who opposed the surtax was Strong enough to prevail despite the Adverse Impact on the deficit this fiscal year. Overall the budget reconciliation Bill lost about a third of its total deficit reduction in the House. It started out As a measure cutting the Federal deficit by $16.6 billion and ended up trimming it by $10.9 Bil lion. As reported to the House floor it was projected to save $34.1 billion Over five years As it goes to the Senate the five year savings Are $ 15.8 billion less than the original first year projection. Democratic critics of this outcome blamed much of it on president Bush s Strong support for a 30 percent Cut in the capital gains tax rate also a part of the legislation that is projected to produce $9.4 billion in Revenue the first three years because it encourages the Sale of assets but would Cost $5 billion a year after that. Capital gains set the whole tone said  e. Schumer . Go for it today and for get about  contemplating the unintended effects of the Gramm Rudman Hollings Law on budgetary Gim micks House budget committee chairman Leon e. Panetta a Calif said it has t gotten rid of them it has created the incentives to do  although designed to reduce the deficit this year the reconciliation Bill also contains the seeds for significant increases in Federal spending Down the Road. A modest si88 million expansion of medicaid in the first year balloons steadily to $4.2 billion Over five years. One of the two competing child care programs approved As part of the Bill thursday would Cost $200 million this year but soars to $4.6 billion in fiscal 1994 for a total five year Cost of $14 billion. In addition to the capital gains Cut and the child care program the legislation would make sweeping policy changes it repeals Section 89, a provision of Law prohibiting favor Able tax treatment for companies whose health plans discriminate in providing enhanced benefits to executives. Resurrects the fairness doctrine requiring broadcasters to give competing views on controversial subjects. Imposes restrictions on dial a Porfi services. Makes 175 changes in Trade and Tariff schedules including duty free treatment of mixtures of hot Pep pers and Salt. Thursday night Senate leaders began discussing a proposal to strip All extraneous provisions from the reconciliation Bill which would delay until a later Date expected controversies Over the capital gains tax Cut and other issues and leave a lean deficit reduction measure. We might be Able to put together a Deal that s Good for the country for a change said Senate minority Leader Bob Dole r-kan., who along with other sen ate leaders praised the idea As one that would Speed up consideration and avoid across the Board budget cuts that otherwise go into effect oct. 16 if the Bill snot enacted by then. . From Page 1 Lily invited Panama s military to 91151 Noriega and turn him Over to the unite states the charges of bungling if True could Lead to the administration s first major foreign policy embarrassment. In assailing the administration. Helm provided an account of events that sharply conflicted with virtually every statement by administration spokesmen in the last two Days. The principal Issue in dispute betwee Helms and the White House is whether the rebels Ever offered to turn Noriega Over to the american authorities. Helms claimed that at 9 . On tues Day the rebel officers told an american general that while they lacked the fire Power to deliver Noriega they invited the United slates to fight its Way into the compound and apprehend him. Helms said the offer was not accepted. The administration with Cheney As its spokesman had said the rebels re fused to turn Over Noriega and wanted instead to permit him to live peacefully in internal exile in Panama. Although Cheney and other officials disputed Helms account several administration policymakers acknowledged that there was some Validity to his Gener Al Point that the White House had not handled the rebellion properly. White House officials said they lacked sufficient procedures to manage the fast moving crisis and they noted that at no time did All top National Security officials meet in one place to discuss strategy. The charges by Helms presented in a speech on the Senate floor plunged the White House into a feverish round of meetings and White Houiss chief of staff Sununu met with senior aides to Helms. Officials said that at no Point since the first warnings of an impending coup were received on sunday did the White House bring together Bush Cheney National Security advisor Brent scowcroft Sununu Secretary of state James a. Baker i Cia director William h. Webster and Gen. Colin Powell the chairman of the joint chiefs of staff for an emergency meeting to Deal with potential . Military involvement. Administration officials said the crisis evolved in a frenetic atmosphere including garbled messages from the american embassy in Panama to the state depart ment and the fact that two key sources of information from Panama to the White House the embassy and american military officers based in Panama were not talking to each  officials said the White House was handicapped because the . Southern omd in Panama Headquarters for american military forces in latin Ameri Ca and the embassy were sending Mes sages that were fast and furious  the bureaucracy was confused said one senior administration official. There is a feeling on the part of those close to the president that the crisis management was t what it should have been a senior White House aide said. There s a sense not that wrong Deci Sions were made but that there was never a coherent attempt to think the crisis through at each  Bakker from Page 1 read. Tears welled in the eyes of mrs. Bakker who also received Large bonuses from pal but was not charged with any crimes. The jury Foreman said he was a swayed by Bakker s testimony in which he defended his earnings As reason Able for someone who raised millions of dollars for the work of the lord. He was a Man of god. He got corrupt and i feel sorry for the Man Hill said. He said that in the 1 / Days of jury deliberations the most disagreement was when the fraud  trial testimony showed pal paid $265,000 to Jessica Hahn to cover up the sexual encounter with Bakker that led to his resignation from pal in 1987. I m sorry i Don t have a song to sing like Tammy but i know this is god s amazing Grace Hahn said in a statement after the conviction. This is going to go Down in history As saying you can touch even the mightiest of men who arc armed with bibles White collars and microphones today s verdict is not attacking god but the people who Are abusing  reaction to the conviction varied among trial spectators. "1 think it s wonderful said Beverly Sparrow. He deserves everything he s going to  my Faith was that he would be set free on All charges said Bill Fisher of fort Mill . "1 still believe he  the trial started aug. 28 and was interrupted aug. 31 when Bakker did t come to court. His attorneys told the judge Bakker was in a fetal position with his head under a Couch. Lawyer George a is watches As Tammy fac Bakker sings a gospel song outside the courthouse thursday after a Brief hearing about the emotional collapse pot Ter ordered Bakker sent to a prison psychiatric Ward. He was declared fit to resume the trial sept. 6. A key to the government s Case was the Sale of about 153,000 partnerships Between 1984 and 1987. The partnerships typically promised three free nights stay annually for life in Exchange for a $ 1,000 donation and Bakker testified that there was room for 211,000 partners. Government evidence showed that Bakker had Only 258 rooms available. Several partners testified they were never Able to use the lodging Bakker had promised. Bakker s former  Ond in command Richard Dortch indicated in his Testi Mony that Bakker knew he was making false promises. Dortch 57, pleaded guilty in a Pica bargain to two counts of wire fraud and one count each of mail fraud and conspiracy. He was Given an eight year prison term andfincd$200,000