The Michigan Daily-Friday, January 16, 1981-Page 9
Carter submits 'stringent' budget
Carter yesterday sent Congress a
"stringent" $739.3 billion budget for
fiscal year 1982 that he said leaves little
room for drastic changes by the in-
coming Reagan adminstration.
The budget proposal, for the fiscal
year starting Oct. 1, projects a federal
deficit of $27.5 billion, little more than
half of this year's $55.2 billion in red
"-THIS IS A very stringent budget,"
Carter told reporters.
"I realize that, after a chance for
examination, both Congress and the
new president and administration
might make some changes in this
proposal. In my judgment, they will be
relatively minor in nature because this
is a sound proposal."
Not counting inflation, Carter
proposed an actual dollar increase of
$23.3 billion in defense spending during
1982, bringing the level to $184.4 billion.
The total defense program would be
$196.4 billion, some of which would be
spent in later years. On a total program
basis, the real defense increase is more
than 5 percent.
The budget would postpone any
general tax cuts for individuals-such
as President-elect Ronald Reagan ad-
vocates-until at least January 1982.
Carter renewed his call for a 10-cent-
per-gallon gasoline tax that the last
"I CONTINUE TO believe," Carter
said, "that large inflationary individual
income tax cuts are neither appropriate
nor possible today, however popular
they might appear in the short run."
Outgoing Budget Director James
McIntyre said that, after providing for
defense, energy, interest on the
national debt and essential domestic
programs, there is "very little room
left" for major spending cuts in the
Asked about Reagan's chances of ac-
tually achieving large spending reduc-
tions, Treasury Secretary G. William
Miller said the administration last year
failed to persuade Congress to make a
number of spending reductions: Miller
added, "There's a difference between
proposing and achieving."
CHARLES SCHULTZE, chairman of
Carter's Council of Economic Advisers,
warned that if the new administration
cuts taxes without making spending
reductions, inflation will rise.
Carter renewed proposals he already
has made for selective tax cuts
designed to "revitalize" the economy.
These include faster depreciation
write-off for business, a bigger invest-
ment tax credit, and an income tax
credit for business and individuals
equal to 8 percent of Social Security
taxes paid. But to hold down the deficit,
he proposed delaying the effective
dates of some of those tax cuts.
Total government spending would in-
crease about I percent in "real" terms-
after adjusting for inflation-in the Car-
ter budget. Defense programs would
get a 4.5 percent real increase; total
nondefense programs, a 0.2 percent
The defense increase would include
strengthening NATO-related and
strategic nuclear forces and providing
greater military flexibility to meet
crises in other areas.
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Presidential tomb A ht
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La.,judge cleared of contempt
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ALEXANDRIA, La. (AP)-A federal
',judge refused yesterday to find a state
fudge in contempt for rulings that
,;efied a desegregation order, and the
:Mate judge said he would obey orders to
6oll three white girls in an integrated
'U.S. District Judge Nauman Scott
said he would allow the three girls to at-
tend all-white Buckeye High School un-
til the end of the semester next week if
-they attend Jones Street Junior High
School after that should they stay in
SCOTT ORDERED the three bused to
the Alexandria school last summer and
their parents' efforts to keep them in
the Buckeye school led to a confron-
tation between Scott and state Judge
Scott announced the compromise af-
ter more than two hours of private
meetings with lawyers in his office.
Both the Justice Department and Lee
agreed to Scott's decision. Lawyers
said the girls' parents and guardians
Built in 1924, after the Univer
would also be asked to agree.
The settlement gives the girls credit
for a half year's schoolwork and
requires that no one violate Scott's
desegration orders. The girls, their
parents, and guardians left court.
without commenting on the decision.
LEE SAID in court he was dismissing
the case from his jurisdiction.
"Regardless of what has been done
by myself and the parents and the
guardians, these three children are
bigger than me, they're bigger than
you," he told Scott. "They will obey
your order and enroll, but do not
deprive them of a half year of their
lives. We will enroll them."
Scott said, "I don't want to win any
battles. And I don't want anyone else to
win any battles. I just want to win the
war and the war is survival of the
THE FEDERAL JUDGE added: "I
want to make it absolutely clear that
this court is supreme in this area. It is
not a matter of vanity, not a matter of
opinion, it is a matter of law, and that's
been said repeatedly by the Supreme
Court, which all of us judges are sworn
"The law is that busing is a viable
tool to use in segregation suits," Scott
Earlier, Lee openly defied Scott's
busing order by seeing that the three
girls were enrolled at Buckeye-not on-
ce but five times.
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