The Burlington Free Press from Burlington, Vermont • Page 1

Canadiens Lose Guy Lafleur ri2 To Retirement' Page 1 Kids Produce A Magazine Ail Their Own ij Jack Barry Gets Roasted bv Peers Ul Page IB Page ID Hiirlttwttftt 1 58th Year Serving Vermont No. 332 Tuesday, November 27, 1984 Four News Sections 35 Cents 1 Radio Personality urn mm. i.n. yi lfication Tax Simp ndations Recom 's Desk On Rea v- i -t frw ws fefv By ANN DEVROY Gannett News Service WASHINGTON Treasury Secretary Donald Regan on Monday gave President Reagan his first look at a tax simplification study that recommends reducing the number of tax brackets from 16 to three and lowering the top individual tax rate from 50 percent to percent. It also recommends eliminating or capping a number of popular tax deductions and credits.

White House spokesman Larry Speakes said the plans, in general, are built around a modified flat tax, and meet the president's goals of a simpler, more equitable tax system. But, Speakes added Reagan will not make decisions on how to proceed with the tax system overhaul until he has held extensive consultations with his Cabinet, congressional leaders and other interested groups. According to administration officials, some of the major elements of the plan are: Providing three tax rates. 15 percent. 25 percent and 35 percent.

Officials said that allows for some progressivity in that the lower-income taxpayers will get the largest tax break and only "the rich" will pay more. Under Treasury figures provided the president, about 80 percent of the nation's taxpayers will pay no more in taxes, or get a cut. The 20 percent who will pay more, officials said, are wealthy enough to take advan tage of extensive, sophisticated tax shelters, not ju.t average deductions like home mortgages A number of us deductions for individuals, sur as state and local taxes, will be eliminated, but officials said even with that, the "average taxpayer" will end up paying 8.5 percent less in taxes Corporate tax rates would be reduced as well, from 46 percent to 40 percent, but some major tax benefits for business would be eliminated or pared back extensively. Regan is to present the options to a full Cabinet meeting today and brief congressional Republicans before publicly unveiling his recommendations later in the day. Speakes acknowledged again what he has said previously some taxpayers may end up paying more under the overhaul but it is essentially aimed at producing the same amount of government revenue as the current system, not at raising taxes.

Speakes said the president and his top aides will spend several days assessing the recommendations and their potential reception in Congress before any presidential decision is made. The actual presidential plan may not be finally decided on until the president's State of the Union address at the end of January, officials said. White House officials acknowledged that the proposal is being portrayed as Regan's recommendation, not the president's plan, and it may Turn to REAGAN, 7A The Associated Press A Dofi Among Dolls Cara Renee Campbell, 1 4 months, finds herself midst of a display of dolls at a holiday crafts show among friends her own size as she sits in the in Miami, Okla. orld Court Votes to Hear Sandinista Complaint decision and said, "We continue to believe that the court is not the proper forum, either as a matter of law, or for helping to achieve a peaceful resolution of the conflict." Nicaraguan Foreign Minister Miguel d'Escoto hailed the court ruling as "a triumph for peace." "Today, the international court has taken a giant step in defense of the international legal system," he said. "It has said its doors are open to a small, poor country under attack by the most powerful and richest nation on earth." D'Escoto urged the Reagan administration to accept the court's decision, and added: "If the United States refuses to participate, if it withdraws or turns its back as has been threatened, it will signal a rejection of international law7." lution of the case.

The 258-page ruling opened the way to full hearings before the World Court on Nicaragua's complaints of U.S. aggression. But the court limited its jurisdiction in the case to violations of the 1956 U.S. -Nicaragua Treaty of Friendship, Free Commerce and Navigation, which specifies that any disputes arising from the treaty should be resolved at the World Court. The World Court, formally known as the International Court of Justice, is the judicial arm of the United Nations.

It has no enforcement powers and depends on voluntary adherence to its rulings. The U.S. government is backing Nicaraguan anti- government rebels based in Honduras and Costa' Rica, and the Sandinist leaders of Nicaragua have claimed the United States is planning an "imminent invasion." Davis R. Robinson, representing the U.S. State Department, issued a statement saying, "we continue to believe that the court is not the appropriate forum for helping to achieve a durable, region-wide solution" to the Central American conflict.

U.S. Embassy spokesman Sam Wonder declined immediate comment on whether the United States would continue to take part in the proceedings, and whether it would abide by any eventual ruling. In Washington, State Department deputy spokesman Alan Romberg expressed disappointment with the court's By ROLAND DE LIGNY The Associated Press THE HAGUE, Netherlands Rejecting a Reagan administration move to keep its Central American policy out of the World Court, the international tribunal agreed Monday to hear Nicaragua's complaint that the United States is sponsoring aggression against Nicaragua. By its 15-1 vote to hear the case, the court decided against Washington's contention that Nicaragua was not eligible to come before the court, and also rejected a U.S. bid to exempt itself from the court's authority.

The court kept in force its emergency ruling of last May ordering the United States to cease any military actions against the Sandinistas, pending final legal reso U.S., Iraq Renew Doctors Drain Fluid In Patient's Lungs iplomatic Links tube inserted into the left side of his chest to remove the blood. Schroeder was au ake and visiting with his family, and it was expected he would have a restful night, according to a 9 p.m. medical bulletin issued by the hospital. His wife Margaret said, meanwhile, that the decision to have the artificial heart implanted "was kind of left to Bill to make up his own mind" and that he had told her, "I have no other thoughts but to go all the way." Lansing said Schroeder was not bleeding and "there appear to be no major complications. "He is warm, pink and dry, indicating excellent circulation," Lansing said at a press briefing.

Schroeder underwent emergency surgery to stop excessive bleeding less than six hours after he became the second person in history to receive a permanent artificial heart. The excessive bleeding was stopped, but not before Schroeder had lost half of his blood through a Turn to BLEEDING, 7A By PAUL RAEBVRN The Associated Press LOUISVILLE. Ky. A second tube was inserted into the left side of the chest of William J. Sch-roeder on Monday afternoon to remove fluid that was accumulating during his second day of life with a mechanical heart, doctors said Monday.

The fluid in the lungs consisted of blood that remained from Schroed-er's excessive bleeding Sunday night and fluid that had accumulated in the chest from the surrounding tissue, said Dr. Allan M. Lansing, chairman of Humana Heart Institute International and assistant to Dr. Williamm C. DeVries.

who implanted the artifical heart. Lansing said the tube was inserted in the left side of the chest when "haziness" in Schroeder's X-rays indicated that fluid was accumulating there. Later, Schroeder's chest appeared "infinitely clearer." indicating that the fluid had been removed, Lansing said. Following his excessive bleeding Sunday night, Schroeder had a single cussions with an important state in the Middle East, where the interests of the United States and the Free World are significant," said the senior official, who insisted on anonymity. He said it did not detract from U.S.

neutrality in the war between Iran and Iraq. In fact, the official said, the United States would be willing to consider resuming relations with Tehran if Iran "ceased its support for international terrorism" and sought a negotiated settlement of the war. The White House announcement said ambassadors would be appointed "as promptly as possible." Actually, the two governments have operated quasi-embassies, or so-called "interest sections" in each others' capitals since 1972. The new ties take effect immediately, the announcement said. Aziz met first with Secretary of State George P.

Shultz, had lunch with him after seeing Reagan and scheduled a call on Defense Secre-Turn to IRAQ, 2A By BARRY SCHWEID The Associated Press WASHINGTON The United States, seeking to widen its influence in the Arab world, resumed diplomatic relations with Iraq on Monday after a 17-year lapse. The move was announced immediately after President Reagan met for 35 minutes with Foreign Minister Tariq M. Aziz, the highest ranking Iraqi to visit here since the 1967 break. At the same time, the administration gave assurances it was not endorsing Iraqi policies, intended to arm the Baghdad government or meant any harm to Israel. "It has no effect on our relations with Israel, which continue to be stronger than ever," a senior U.S.

official told reporters. Until Vh years ago, Iraq was listed by the United States as a country that supports terrorism. It broke relations to protest American support for Israel in the 1967 Six-Day war. "The step recognizes the importance of our holding productive dis The Associated Press An Iraqi Embassy employee stands on a balcony after raising the Iraqi flag at the embassy building in Washington Monday, ending a 1 7-year break in diplomatic relations. -111 Poll Shows Sanders' Popularity Still High HAZY SUNSHINE is expected today with highs around 60.

Tonight, fair and breezy with lows in the 40s Page 2 A. Political Affiliation Approve 77 64 58 EH3 Disapprove 10 13 24 Democrats Independents Republicans get involved in politics while she remains executive director of the Sara Holbrook Center, and she said Christmas is the center's busiest time of year. Republicans had agreed informally to support Green if she chose to run, but the delay appeared to catch some party members off guard. One Republican alderman said it appeared Green was signaling that she will not run, but others said she can win even if she delays her announcement. Democrat Brian Burns also is considering running for mayor, and he said Monday he continues to seek and to receive political commitments and expressions of support.

Sanders has said he may not seek a third term. If he Turn to SANDERS, 7A By DON MELVIN Free Press Staff Writer Burlington Mayor Bernard Sanders a radical independent whose first electoral success was viewed as a fluke remains extraordinarily popular, according to a new poll. Two-thirds of Burlington residents 67 percent -r-approve of the way Sanders is handling his job, and the mayor's support cuts across all age groups, income levels and political parties, according to the poll. It was conducted by Tom W. Rice, a University of Vermont political science professor.

Meanwhile, Maggie Green, a Republican considering running as an independent against Sanders in March, said Monday she will announce her decision in January, not Dec. 1 as she had promised. Green said she will not CLASSIFIED 6C COMICSTV 5D DEATHS 2B LIVING ID LOCALSTATE IB MONEY 4C MOVIES 3D 2A OPINION 8A SPORTS 1C WORLD 6A Total Annual Household Income 0,000 68 8 70 17 $30,000 65 19 This chart shows the level of support for Mayor Bernard Sanders according to political affiliation and income. The figures are the result of a telephone survey of 321 Burlington residents..