European Stars and Stripes (Newspaper) - December 31, 1990, Darmstadt, Hesse                                Page 4 a a 1 the stars Ano stripes monday december 31,1990 crisis in the Gulf Dole says Bush faces parting tears army reservist Virginia Swedman Kis her emotions show while standing at attention in Philadelphia be fore deploying sunday to saudi Arabia the 26-year-old�?~had to leave behind a husband and three children when her unit the 304th civil affairs group departed for duty in operation desert shield the unit is an advisory group that helps nations restore communities destroyed by War make or Washington up the persian Gulf crisis and the floundering Economy Mark a a make or break time in the presidency of George Bush Senate Republican Leader Robert Dole said sunday. Appearing on no cd a Quot meet the press a Dole also said he has received word from Baghdad Iraq of possible flexibility in stalled efforts to hold  talks before the United nations Jan. 15 deadline for Iraq to withdraw from Kuwait. Other congressional leaders also appearing on talk shows said they want to learn at a White House meeting thursday if Bush is willing to ask Congress to vote on using Force before a shot is fired at iraqi troops. Dole a inn said Bush should make a final attempt to arrange a pair of meetings Between himself and iraqi foreign minister Tariq Aziz and Secretary of state James Baker and iraqi president Saddam Hussein a i have a gut feeling that the american people Are not yet committed to War and they want to be sure the president has pursued every Avenue to peace a Dole  said that lie received a return Call from iraqis ambassador to the United states not in Baghdad consulting with Saddam and that to think its fair to say i had some indication there was some flexibility. It would not have to be on the 12th of january As president Hussein previously  Bush had complained that Jan. 12 is top close to the Jan. 15 deadline. The president was to meet with Aziz in Washington on dec. 17, but that session was postponed indefinitely. Dole taking note of the problems in the Persia time Gulf and with the slumping Economy declared �?�1 think its make or Brcak time for George  a. We could do very Well m the Gulf and still go downhill on the Economy. That May be More difficult to Deal with in the final analysis than the Gulf crisis a and he added a my gut tells me there la be a Resolution of the Gulf crisis without firing a shot a his comment echoed words by Rush in in this weeks time Magazine. A my gut says he Saddam will get out of there a Bush said in the interview. A but that flies in the face of what some of the Arab leaders Tell me which is that he cannot get out a Dole was sharply critical of House democratic Leader Richard Gephardt of Missouri who suggested that if Bush launched a military offensive without first asking Congress permission lawmakers could Cut off funds to operation desert shield. A a that a incredible a Dole said. A a in a like him to Tell that to the troops in the Sands of saudi Arabia that if we can to get our Way with president Bush Wren re going to Cut off your funding in the desert. To me that was a big big political mistake on his part. He  get the majority of the House and i assure you he can to get a majority of the senate.�?�, on cd so a face the nation Quot House armed services committee chairman Les Aspin d-wis., said it might be politically hard to launch a War without a some kind of direct diplomatic contacts to show that the United states was taking every step possible to avoid War. A. A rep. Lee Hamilton d-ind., a key member of the House foreign affairs committee agreed adding a i done to think the american people will support  into combat until you be exhausted All other  x a Washington apr new Federal taxes will raise the Price of tobacco beverage alcohol and some luxuries beginning tuesday while upper bracket americans  to pay higher income taxes to help reduce the nations budget deficit. The changes combined with the 5.1-cent-a-gallon gasoline tax increase that took effect dec. To will raise the average households Federal tax Iii by about $215 a year. Congress estimates the average family making less than $50,000 will pay an extra $1 week. Those with incomes Between $50,000 and $100,000. Will pay about $278 a year More on the average. The increase for die $100100 -tor$200,000 group will average $839, the richest 600,000 couples and individuals with incomes Over $200,000 a will pay an average of $8,598 More per year. A Congress i top Iconie earners to Correct what Many lawmakers perceived As Overly generous tax cuts during do 1980s. The new Law boosts the top income-4nx rate on people at that income level restricts their itemized deductions phases out the value of their personal exemptions and subjects More of their wages to medicare payroll  the other hand prior Law will give All taxpayers bigger exemptions and other adjustments designed to prevent Hist year s inflation from raising their income Ulics. The new year also brings a major increase in the. Earned Ine Oine tax credit which benefits Low income working families with children and expanded tax incan Tive for Energy investment. Here Are highlights of the changes tobacco taxes Are rising by 25 percent meaning the 16-cent tax on a pack of cigarettes goes to. 20 cents other levies As much As $30 per 1,000 Large cigars $1,125 per 1,000 Small  tobacco 12 cents a Pound snuff 36 cents a Pound pipe tobacco 67v cents a Pound. A. Alcohol the liquor tax goes up $1 to s 13.50 for a gallon of 100-proof 50 percent alcohol an extra 20 cents a fifth for 100-proof and 16. Cents for 80-proof, the Beer tax is doubled to.32 cents a six pack the tax on wine is rising depending on alcohol conic it table wine now 17 cents a gallon goes to $ 1 -.07 the Levy on in Iii dial to carbonated wine now $2.40, goes to $3.30 a gallon. Luxuries a new 10 percent tax applies to that portion of the Price above $30,000 for cars $100,000 for boats $250,000 for aircraft and $10,000 for furs and jewelry. Vehicles including taxis and. Cruise ships used to transport people for hire Are exempt. The tax applies Only to the first retail Sale of an item. However Coopers amp Lybrand accountants note for example j that if stories from an antique Bracelet Worth $10,000were reset into a new piece of jewelry Worth $15,000, the tax would be levied against $5,000, Cas guzzlers the penalty True on fuel thirsty cars is doubled. Any new car bought in 1991 with an Epa rating under 22vi Miles per gallon is subject to a tax ranging from $1,000 for a Iva mpg Model. To $7,700 less than 12v6 mpg. Quot a a tax rates a quirk in the 1986 Law that allowed sonic lop neg the people to pay a lower rate in part of estimates of tax shifts Here Are estimates of How total Federal tax liabilities Are shifting among various income Levels As a result of the latest deficit reduction Law. 1 most of the tax changes take effect Jan. 1. An increase in gasoline taxes went into effect dec 1 the second column of figures shows the share of Federal taxes paid by each income group under the old Law the third show s the share under the new jaw income old Law new Law share a Quot a share under $10,000 1.6% 1.6% $10,000-20,000 7.6 7.2 $20,000-30,000. 11.9 11.8 $30,000-40,000 13.4 13.4 $40,000-50,000 10.2 10.2 $50,000-75,000 Quot 20.0 19.9 $75,000-100,000 a 7.7 7.7 $100,000-200,000 a a 12.1. 12.1 $200,000 and up 15.4 16 source joint committee on taxation their earnings than applied to those with slightly less income has been eliminated. This results in a new top rate of 31 percent Down from 33 percent. The majority. Of americans will continue to pay a Fiat rate of 15 percent on their taxable income t because of the new Law and the automatic inflation adjustments the new rate Structure looks like this a single people pay 15 percent of the first $20,350 of taxable income after exemptions and deductions28 percent on the next $28,950 and 31 percent on everything Over $49,300, a couples filing a joint return pay 15 percent of the first $34,000 of taxable income 28percent on the next $48,150 and 31 percent on everything Over $82,150. Exemptions increased by $100 to $2,150. Once adjusted Gross income Agi. Exceeds $100,000 for a single. Person or $150,000 for a couple the exemptions Are reduced gradually. They Are eliminated totally once income tops $222,500 single or $272,500 couple. Standard deductions go up from $3,250 to $3,400 for singles and from $5,4500 $5,700 for couples. Itemized deductions couples and individuals with ag1 Over $100,000 allowed to use Only 97 percent of otherwise allowable itemized deductions the limit does not apply to medical expenses investment interest or deductions for theft or casualty losses social Security taxes the 10 million workers who earn More than $51,300 a year will pay a higher social Security tax the rate remains 6.2 percent but will apply to the first $53,400 earned in 1991 up from the maximum $51,300 in 1990. Capital gains although higher income people will pay a tax rate of 31 percent on some of their income the top rate applying to capital gains profits from the Sale of Stock and other investments is 28 percent. Minimum tax this 21 percent Levy aimed at ensuring that higher income people pay some tax regardless of How Many legitimate deductions they have goes up to. 24  income credit the maximum credit rises to $1,192 for a one child family and $1,235 for a family w Ith two or More children. A