Amerikai Magyar Szó, 1988. július-december (42. évfolyam, 27-48. szám)
1988-11-17 / 43. szám
Thursday Nov. 17. 1988. 11. AMERIKAI MAGYAR SZO Corporate giants receive $1 billion in tax refunds By Tim Wheeler WASHINGTON - General Motors, IBM, Hewlett Packard and 13 other corporations raked in $9.6 billion in combined profits last year, paid no federal taxes and received back $1.05 billion in tax refunds. These are the findings of the latest report on "corporate tax freeloaders" released Thursday by Citizens for Tax Justice (CTJ) at a Senate press conference. With Rep. Senator Robert Packwood (Ore.) standing besid him, CTJ Director Robert McIntyre warned that GOP pressidential nominee George Bush "has taken positions in favor of restoring tha capital gains and other loopholes that are quite the opposite of tax reform. Certainly, these proposals are ones we would fight very hard against. They would undermine tax reform." As recently as Tuesday Bush's economic adviser, Robert Zoellick, told the New York Times that Bush favors $8 billion in added corporate tax giveaways, including an increase in the capital gains and oil depletion loopholes to "stimulate" the economy. McIntyre debunked this. "There is an inverse relationship," he said. "The larger the tax loopholes, the lower the corporate investments in plant and equipment. It makes sense. If business can make profits by mining the tax code, that's what they are going to do. "When George Bush says he will 'never' raise taxes, does he mean that General Motors should be permitted to avoid taxes on billions of dollars in profits in perpetuity?" McIntyre asked. Packwood warned that, despite the 1986 Tax Reform Act that was supposed to force billionaire corporations to pay at least a minimum tax, loopholes are "creeping back" as businesses plead for exemptions, writeoffs and tax refunds. Packwood said loggers and millworkers confront him at home, pointing out, "We pay our fair share of taxes. Why shouldn't these wealthy corporations pay theirs?" According to the report, GM reported 1987 profits of $2.4 billion, paid no taxes, and received a $742 million refund check from Uncle Sam. IBM reported $2.9 billion in profits, paid zero taxes, and got back $123.5 million. Hewlett Packard, which derives most of its income from Pentagon contracts, reported $405 million in profits, and received a $15 million refund check. Goodyear Tire and Rubber had $574 million profits, paid no taxes, and got a $2.4 million refund. Illinois Power made $344 million, paid no taxes, and got a refund of $25 million. Ashland Oil, with $158 million in profits, paid zero taxes, and got back a check for $11.8 million. The report sings the praises of the 1986 tax reform act. Yet it points out that the 250 corporations surveyed in the report are still paying a 22 percent tax rate instead of the statutory 40 percent. "If all the nation's corporations had paid the 40 percent rate in 1987 (as they did, on average in 1970), the federal Government would have collected more than $70 billion in added revenues," the report notes. That is nearly half of the $146 billion federal budget deficit. Hungary may mark grave for Nagy By Leslla Colltt in Berlin Mr. Imre Nagy, the Prime Minister of Hungary, during the 1956 uprising who was executed by the Soviet Union, is apparently to be permitted a marked grave. Mr. Nagy's soviet-backed successor, Mr. János Kádár, refused to allow the site of Mr, Nagy's final resting place to be revealed. But since Mr, Radar's removal last , May as head t of the party, the new party leader Mr. Karoly Grosz has displayed less rigidity while refusing to rehabilitate Mr Nagy. Several hundred members of the opposition were allowed to gather last June on the 30th anniversary of the execution at plot No, 301 of the Rákoskeresztúr cemetery in Budapest where Mr, Nagy's remains are believed to be buried. Mr. János Berecz, a member of the ruling Politburo and Central Committee secretary for ideology, noted in reply to a viewer's question on Hungarian television that the Government was dealing with the question of giving Imre Nagy a marked resting-place. He said it was a "painful process" which required a little time. An exhumation was needed and agreement with the family had to be reached on when the remains could be handed over, where the grave site was to be and the "method of burial." reiterated that this was not a rehabilitation of Nagy Imre but simply paying the last funeral rites. GROSZ PLEDGE Nearly all political leaders stay too long, whatever their initial intentions. Here, however, is a firm pledge from Karoly Grosz, the Hungarian General Secretary and great admirer of the British Prime Minister. Grosz says that he will remain General Secretary only until the next party congress in 1990 and will depart altogether around 1991-92. The reason is that he does not want to repeat the mistake of Janos Kádár, who stayed for over 20 years and had to be forced out. Grosz made his statement to Paul Lend- vai, whose book - Hungary: The Art of Survival - was published by I,B,Taurus yesterday. Give this page to a friend! THE ELECTIONS James Reston, in his column in the N.Y. Times posed the question: what if we ran an election and no one showed up? This is not an idle question. When Reagan ran in the last election only 52% of the eligible voters turned out. So his claim of a mandate from the people was non- sence since it meant that only 33% of those eligible to vote voted for him. In this election only 49% of the people voted, according to CBS. Of that 60% said they are voting but don't like either of the candidates. The majority of the people have spoken. We have to hope that the politicians can read the handwriting on the wall. They want a real choice not prepackaged candidates. A voter interviewed on the day after the election, asked about his choice, said: I voted because it is expected of me, but I would have liked a place on the ballott for none of the above! TOURISM IN HUNGARY For Hungarian citizens the road to free travel was long and winding. According to the new law, every Hungarian citizen enjoys the right to unrestricted travel and must receive his valid documents within 30 days of handing in an application. Every year, some 5 million Hungarians travel abroad, most of them to the neighboring countries, but many go to distant lands and far-off continents. Hungarians who wish to see the world often find, however, that the visa procedures of certain countries fall behind the flexibility and speed of Hungarian practice. While Austria, Sweden, Finland and other countries have accepted the Hungarian initiative to do away with the need for visas, most Western European countries have not yet responded favorably to this initiative. Hungarian policy has nevertheless remained the same: anyone can pick up a Hungarian visa at any Hungarian diplomatic or consular representation; what's more, anyone arriving by car can obtain one at the border, while those arriving by plane may be issued their visas at Budapest airport. This has surely contributed to the fact that last year approximately 19 million foreign citizens crossed the country's borders, the majority as tourists. Hungary's present policy towards international tourism has been motivated by two basic factors. One is the conviction that closer contact between the people of the world will help foster peace and cooperation - a conviction clearly supported by recent events. The other motivating factor belongs to the sphere of economics: during 1987, earnings from tourism brought the country $550 million and 420 million rubels. It was from these revenues that the National Bank of Hungary was able to supply prospective Hungarian travelers with hard currency. Hungary is hopeful that the present stage of detente will help further expand the possibilities of tourism everywhere in the world.
