01.24.34-DUKE-Reagan has introduced a plan for TUITION TAX CREDITS for PRIVATE SCHOOL TUITION. WERTHEIMER-4 1/2 billion dollar plan, REAGAN says that is to help "parents who have to bear the double burden of public and private education". Even proponents are not optimistic, longstanding opposition to past proposals. 01.26.00-Shot of Sen. ERNEST HOLLINGS (D-SC) seated in office, says that TUITION TAX CREDITS FOR PRIVATE SCHOOLS are unconscionable, especially since REAGAN'S BUDGET has so many cuts in aid for PUBLIC SCHOOLS and DISADVANTAGED CHILDREN-wrong to aid parents who send kids to PRIVATE SCHOOLS. HOLLINGS says REAGAN has contradicted two of his campaign promises, to CONTROL SPENDING and get government out of "private affairs". WERTHEIMER asks about HOLLINGS' contention that TUITION TAX CREDITS FOR PRIVATE SCHOOLS would hurt PUBLIC SCHOOLS. HOLLINGS says that PUBLIC SCHOOLS are not getting enough money-only half of eligible schools and students are getting federal assistance. WERTHEIMER notes issue of CIVIL RIGHTS, that REAGAN'S plan would give TAX BREAKS to parents who send their kids to SEGREGATED SCHOOLS. HOLLINGS says that in the SOUTH, SEGREGATION is a main purpose of private schools-calls them "WHITE FLIGHT" schools. Repeats that the plan of REAGAN is "UNCONSCIONABLE". 01.28.30-WERTHEIMER asks about the simple issue of COST. HOLLINGS says it can't be afforded with a $117 BILLION DEFICIT already. Discussion of negotiations over the BUDGET. WERTHEIMER asks HOLLINGS to "handicap" the battle between REAGAN and Congress. HOLLINGS replies that "THE PRESIDENT IS THE HANDICAP" [HA HA HA HA HA], and isn't really committed to compromising or making a fair budget, says that the SENATE BUDGET COMMITTEE should act on its own if REAGAN won't cooperate, but the problem will be getting a budget with a REDUCED DEFICIT through the HOUSE, because HOUSE not as willing to cut spending in an ELECTION YEAR. HOLLINGS jokes that the BUDGET is suffering from "REAGA-MORTIS". 01.30.00-WERTHEIMER/DUKE-discussion of potential of SENATE making a BUDGET without REAGAN, problems with the big changes required in SPENDING and TAX policies. Possible that there might not BE any BUDGET for 1983. DUKE-intro report on TAX CHEATING. **01.30.43-Shot of man entering IRS TAX CENTER, handing forms to a woman at desk. shots of very nervous-looking people standing in line. DUKE v.o.-an alarming 25 percent of taxpayers fail to report all income to the IRS. Shot of SHELDON COHEN, former IRS COMMISSIONER, says that people are willing to steal from the government. Says it's indicative of a lack of respect for the laws. DUKE-v.o.-some say that eliminating TAX CHEATING by private citizens could balance the budget. Shot of BOB DOLE in office, gives some statistics about TAX CHEATING. DOLE wants to toughen reporting laws [for John Q. Public, but not for John Q. Corporation]. Shot of a man, described as a restaurant owner. Shots of waitresses and other workers in restaurant. DOLE proposal would require the RESTAURANT INDUSTRY to fully report all TIPS earned by waitstaff [yep, let's cut the deficit by cracking down on people who wait tables]. Shots of waitstaff interviewed, an older man and young woman, both say it's unfair because WAITSTAFF make so little money to begin with. Shots of work in Restaurant. Shot of Restaurant owner, says that the IRS can't enforce its existing laws well enough, so new laws are unfair. 01.33.59-DUKE v.o., shots of piles of TAX FORMS on a table-DOLE PLAN would also toughen CAPITAL GAINS REPORTING and DIVIDEND REPORTING requirements. Shots of workers in an IRS OFFICE. Shot of former IRS chief, discusses the low number of AUDITS that the IRS can perform due to low budget. DUKE-the unpopularity of the IRS makes the bill unlikely to succeed. Shot of DOLE, says he expects to hear a lot of criticism of the IRS. Shot of ex-IRS chief, says that people hate to be AUDITED, but everyone wants to be reassured that "the other fellow is paying his fair share". 01.35.39-WERTHEIMER-intro commentary. Commentary by Charles McDOWELL on TAXES. McDOWELL bemoans the TAX process. Notes in light of DOLE'S crusade to crack down on TIPS, that only half of all CAPITAL GAINS are reported by the RICH for TAX PURPOSES. Discussion of reasons for the mere 60 percent compliance rate with voluntary reporting of income, at the bottom, the poor and middle class feel that the TAX SYSTEM ISN'T FAIR, and favors the RICH. Notes that one corporation made TWO BILLION DOLLARS PROFIT last year and still managed to get a TAX REFUND, and REAGAN gave the big guys even more breaks. 01.37.46-DUKE-signs off Closing credits/transcript order information/WETA credit/Sponsor Credits/PBS ID 01.39.16--OUT