Rapid City Journal from Rapid City, South Dakota • 1

Surcharge may join corporate tax in scrapheap A family with $100,000 of income In Brief Index Both families would pay 5 percent more in taxes, however, if the surcharge were applied directly to their tax bills. Taxable income refers to the amount of money on which a person pays taxes after taking allowable deductions, such as for state and local taxes, medical expenses, mortgage interest payments and business expenses. Under the 1984 tax rates, a family with $10,000 of taxable income would pay $819 in taxes. A 1 percent surcharge on taxable income would raise the family's tax bill by $100, while a 5 percent surcharge on taxes would mean paying only $41 more. deficits.

Another part of the package calls for a fee on crude oil that would raise retail gasoline prices by about 12 cents a gallon. Although the surcharges on taxable income and tax liability are the two leading candidates for inclusion in the package, Fitzwater said a different approach altogether may eventually be selected. Calculations based on tax rates in effect as of 1984 show that a 1 percent surcharge on taxable income amounts to a 12 percent increase in taxes for a family with a taxable income of $10,000 a year, but only a 3 percent tax increase for a family with $100,000 in taxable income. WASHINGTON (AP) President Reagan's suggestion to abolish the corporate income tax may be joined on the cutting room floor by his proposal for a standby surcharge on taxable income of individuals and business. After raising the idea Wednesday of doing away with the corporate income tax, Reagan abandoned the notion Thursday.

Treasury Department spokesman Marlin Fitzwater said Reagan's proposal for a standby 1 percent surcharge on taxable income may be dropped because it could prove unfair to lower-income Americans. Instead, he said the administration is considering a 5 percent surcharge on tax liability rather than a levy directly on income. The change would place a heavier burden on upper-income taxpayers while still raising about the same amount of revenue about $20 billion a year. "We're interested in the 5 percent surcharge because it is more fair," Fitzwater said. "It has a greater impact on the upper brackets and less impact on the lower brackets, and maybe is a.

way." Either proposal would be part of a package of contingency taxes Reagan wants for fiscal years 1986 through 1988, if needed to reduce future budget 2 Sections Amusements V4-V6 B.H. Notebook 8 Classified 12-18 Comics 9 Markets 6 Sports 10-11 Television V8 would pay $32,400 in taxes. A 1 percent surcharge on taxable income would mean an additional $1,000 in taxes, while a 5 percent tax surcharge would mean the family would have to pay $1,620 more. In pronouncing the death of the idea to repeal corporate income taxes, White House spokesman Larry Speakes accused the press of going "berserk" and failing to put the issue in the perspective of a long-held Reagan view, but one that is not a top priority. Reagan had raised the suggestion in an off-the-cuff remark Wednesday, and Surcharge continued on page 2 City, area deaths Elizabeth Wendland.

Belle Fourche Leo J. Tompkins. Custer Manuel Hernandez Rapid City Kenneth M. Johnson, Speartish Willis F. Hall, Deadwood Details on page 5 25c (less by carrier) Friday, January 28, 1983 theRapidCityJournal Weather Tonight will become cloudy and colder with a 20 percent chance of light snow and lows in the mid 20s.

Saturday will see mostly cloudy conditions with highs in the mid to upper 30s. Details on page 8. I Residents (photo at left) along the high tides and a strong storm that week. A van (right) sits precariously area next to a home in Malibu, Pacific Ocean in Aptos, examine rolled through Northern California this tilted after waves eroded the beach Thursday, their home which was destroyed by waves crash down on California coast Inside today Area BOX ELDER A group of upset taxpayers may circulate petitions to recall Mayor John Hughley and some members of the city council after an unsuccessful attempt to give Hughley a $20,000 salary. Page 2.

State WATERTOWN An unemployed Vietnam veteran has been charged with first-degree murder and is being held without bond in the shotgun slaying of a Watertown businessman. Page 2. PIERRE Gov. Bill Janklow said he probable will be able to talk federal officials into giving the state the McNenny Fish Hatchery near Spearfish, and fish raising equipment on it, so the state can keep it open. Page 5.

SIOUX FALLS The South Dakota Education Association thinks all public school teachers should be evaluated every semester by administrators in their school districts. Page 7. Economic index jumps 1.5 percent WASHINGTON (AP) In a new sign of recovery, the government said Friday its main economic forecasting gauge lumped 1.6 percent in December, the eighth gain in the last nine months and the biggest increase in more than two years. The Commerce Department reported the increase in its Index of Leading Economic Indicators, a compilation of 10 separate statistics, including forward-pointing information concerning unemployment, production, prices and business conditions in general. Commerce Undersecretary Robert Dederick said "the robust advance in December's leading indicators further strengthens the case for economic growth this quarter." In the past, gains in the leading indicators have foreshadowed recovery for the economy as a whole, though recovery usually arrived sooner than nine months after the indicators turned up.

The December gain was the biggest since the 2.8 percent in September 1980 as the economy was pulling out of that year's steep but short recession. Such gains of 2 percent or more have been common at the start of previous recoveries. Lottery winner shares her loot BRUSH, Colo. (AP) A woman who won $10,000 in the new state lottery, and remembers when she didn't have a dollar for her sons, is giving away some of her prize money to children in this northeast Colorado town. "I'll get a million dollars worth of good" from handing out the cash in the community of 3,600, said Barbara Richter, 47.

She said she is giving out $5 at a time. "Any more (money), people tell their kids, 'Don't take anything from but I tell them who I am, and ask if they know I won a lot of money. Most say yes," Mrs. Richter said. She said she isn't telling the children how to spend their windfalls, recalling her days as a single parent and not having any money to give her four sons.

Mrs. Richter won the $10,000 Monday on the first day of the lottery, and said she has been giving away $200 a day. She said she doesn't need the money because she and her husband, Ray, are "fairly well off." She is retired, and the couple own a restaurant. Towering The Associated Press Four California counties were declared disaster areas after a pounding surf from the week's third storm washed away swank homes, battered famous piers and forced a thousand families to flee a record high tide. Nine deaths were directly blamed on the violent storms, and six people died Thursday in a twin-engine airplane crash in Scottsdale, that officials said could be weather-related.

The series of windy rainstorms that started Wednesday has pounded the West Coast from the Oregon border to Mexico, with high tides damaging or destroying about 1,000 homes in Southern California. The storms also wrecked more than 100 homes in Northern California, and left thousands of people without power. Although the rain let up in Los Angeles and San Francisco overnight, another storm was forecast to crash in late Friday on the central and southern portions of the state, where damage estimates have already reached tens of millions of dollars. north at the Sacramento-San Joaquin River Delta that feeds into San Francisco Bay. The water reached 10.34 feet at 1:15 p.m., the highest level in 58 years.

A tractor driver drove his vehicle into a break in a levee at Golden Island to plug it. About 300 feet of the Santa Monica City pier was severely damaged. Turbulent waves swept pier buildings into the sea and ripped off the lower deck. The harbormaster's office fell into the sea. A man driving a pickup north on Interstate 5 near Oceanside died in a five-vehicle chain-reaction accident Thursday.

Troopers said the truck, the fourth vehicle in the accident, skidded to a stop facing the wrong way and was struck head-on by a car. Officials recovered the bodies of two men who had been boating in the Los Angeles River, normally only a trickle in a concrete channel. One victim's 8- California storm continued on page 2 town of Novate about 20 miles north of San Francisco, escaped being buried alive when a mudslide crashed into a bedroom of their $300,000 home before dawn Thursday. At Redondo Beach harbor, near Los Angeles, waves crashed through windows and flooded a dozen businesses and four restaurants. As many as 100 beachfront homes in Aptos, about 90 miles south of San Francisco, were under siege with the surf knocking out windows and eroding underpinnings.

A single wave smashed 10 swank homes, according to the sheriff's office, which estimated area damage at $30 million. The 300 miles of shoreline from San Luis Obispo to San Diego in Southern California was especially hard hit by high tide and high surf. In San Diego, some residents used surfboards to get down flooded streets, but in nearby Cor-onado, little to no flooding was reported in the area of the waterfront Del Cor-onado Hotel, said police spokesman Paul Pacior. The record tides were recorded in the Mateo counties disaster areas. The declaration entitles the counties to money to repair damage to public property, Deukmejian's press secretary, Larry Thomas, said in Los Angeles late Thursday.

Damage from the storms was expected to be in the tens of millions of dollars, and emergency services spokeswoman Anita Garcia said at least 998 families had evacuated their homes. The storm whipped up 90 mph winds, dropped 3 or more inches of rain on some towns in a day and sent 20-foot breakers crashing over coastal roads. It plastered parts of the Sierra Nevada with 4 inches of snow an hour as it moved inland toward the Rockies. Some areas got several feet of fresh snow. Eleven thousand homes and businesses remained without power Thursday night, and during the storm at least 400,000 customers temporarily lost power, said Marilyn Beret, a spokeswoman for Pacific Gas and Electric.

A family of five in the Marin County Gale warnings were posted Friday for northern and central California. Meanwhile, Thursday's harsh weather moved inland Friday extending from southern Idaho to Arizona, with a foot of snow forecast for higher elevations in Colorado, said Hugh Crowther of the National Weather Service's Severe Storms Center in Kansas City, Mo. Two feet of snow fell Thursday in some of California's mountains. Tidal charts showed the seas would normally be at their annual peak now, even without the high winds that led to the current damage. On Thursday, the pounding surf inflicted serious damage on Southern California beachfront homes owned by such film stars as Bruce Dern and Burgess Meredith.

"I knew it was all over when I saw the hot tub sail by into the ocean," said Becky Ilagan, who fled from her bungalow in posh Malibu just before it broke up in the boiling high tide. Gov. George Deukmejian declared Los Angeles, San Diego, Marin and San Congressman calls for probe of B-52 safety Fourth man sought in area death Bob Imrie Regional Editor DEADWOOD Lawrence County investigators are looking for a fourth man in the shooting death of Deadwood businessman Russell Keller 15 months ago. State's Attorney Roger Tellinghuisen refused to give the man's name but said an arrest warrant was issued this week. "At one time, he was in Rapid City but we don't know if he is still in the area," Tellinghuisen said.

Last week, authorities arrested two Rapid City men, Scott Whitesell, 20, and Timothy Holmes, 22, and said a third man, still at large, was wanted. Holmes was indicted by a Lawrence County grand jury last week and charged with conspiracy. Holmes, who was sentenced to two years in the state penitentiary in November 1981 for receiving stolen property but was out on parole last week, has pleaded innocent and innocent by reason of mental illness to the conspiracy charge. A jury trial is set for April 4, Tellinghuisen said. According to the grand jury indictment, Holmes "conspired with Don Weigers to lure" Keller, who co-owned a wrecker service, to Pahasapa Cam- Deadwood death continued on page 2 GRAND FORKS, N.D.

(AP) A flash fire that killed five Air Force workers doing routine maintenance on a B-52, the third major accident in two months involving the decades-old bombers, raises doubts about their safety, a congressman says. Air Force officials had no immediate explanation for the explosion and fire Thursday that left the giant plane a charred hulk and injured eight other workers. Investigators were sent to Grand Forks Air Force Base Friday to search for clues. Rep. Robert Matsui, calling for a congressional investigation, said, "We owe this to military personnel, whose safety and lives may be jeopardized by the aircraft, and we must assure ourselves that the B-52 fleet is still capable of its mission." Matsui's district includes an Air Force base that was the scene of an earlier B-52 crash.

Thursday's explosion, created by burning fuel, came as the B-52G was undergoing routine maintenance after a training mission the previous night, said Col. Frank B. Horton, commander of the 321st Missile Wing. The plane, built in the late 1950s, was not carrying nuclear weapons, he added. The fire broke out at 9:30 a.m.

and was controlled in 15 minutes, but only the tail of the bomber, parked on a maintenance ramp, was left intact, officials said. "We had work going on on the fuel B-52 continued on page 2 i Rapid City Journal News, circulation, business 342-0280 Classifiedwant ads 348-3500 Rapid City, South Dakota Number 324991 06th Year 4 Only the tail section remains intact on a B-52 bomber that exploded and burned routine maintenance check. (AP Laserphoto) Thursday at Grand Forks Air Force Base near Grand Forks, N.D.. during a I.