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...funds attracted to the U.S. from abroad add to the pool of funds available to finance investment in the country. This year the capital inflow will be enough to offset half of the Government's borrowing. But the current level of capital inflow cannot be sustained. Foreign assets in the U.S. have increased 50% since 1980. Even if U.S. interest rates remain high, foreign investors will eventually become saturated with dollar securities. When the inflow of funds shrinks or stops, investment in the U.S. will decline, and real interest rates here will rise even higher--unless Government borrowing...

Author: /time Magazine | Title: Essay: How to Get the Deficit Under $100 Billion | 2/4/1985 | See Source »

Although there is never a good way to raise tax revenue, there are three ways that are better than other alternatives. The first would be a 3% threshold on the indexing of the income tax brackets. Taxes would continue to be adjusted every year to offset the effects of inflation but only to the extent that inflation exceeds 3%. This would parallel the 3% threshold on the indexing of Social Security benefits and would be a natural basis for a political trade between those who oppose any reduction in the growth of Social Security benefits and those who oppose...

Author: /time Magazine | Title: Essay: How to Get the Deficit Under $100 Billion | 2/4/1985 | See Source »

...more than 20% in the past three years, and is likely to go on falling. Even a relatively small 5% excise tax on energy could produce some $15 billion a year by the end of the decade. And an extra 10 cents-per-gal. tax on gasoline--which would offset only half of the 20 cents-per-gal. price decline that has occurred over the past four years--would raise $10 billion a year...

Author: /time Magazine | Title: Essay: How to Get the Deficit Under $100 Billion | 2/4/1985 | See Source »

...weakening of the purpose of the Fourth Amendment to protect the privacy and security of our citizens." James Weill, legal director of the Washington-based Children's Defense Fund, claimed that "the court hasn't been sufficiently protective of the unique status of children." Weill believes the court should offset children's vulnerability by giving them added rights and protections...

Author: /time Magazine | Title: Education: Search Rules | 1/28/1985 | See Source »

...exactly offensive or entirely appealing, Marino has several grace notes to offset a sometimes snarly street-corner manner. A ready laugh, for one. "Just taking it easy, having fun," he likes to say. His common speech owes something to Huntz Hall and Leo Gorcey, though he can shift from "dese" and "dose" to a surprising eloquence. He sways behind the center like a royal palm, but it is a greater wonder how he can swagger sitting down and strut standing still. A compact passing release is characteristic of his general economy of movement and thought. "Most quarterbacks have that high...

Author: /time Magazine | Title: Sport: Up in Arms: Two to Tangle | 1/21/1985 | See Source »

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