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March 11, 1981 - Image 10

Resource type:
The Michigan Daily, 1981-03-11

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Page 10-Wednesday, March 11, 1981-The Michigan Daily
Budget sent to Congress

Reagan laid before Congress yesterday
a $695 billion budget he claimed would
return government to "economic
sanity" through overall cuts of $48.6
billion despite a bolstered military.
Reagan's revised fiscal 1982 program
would boost defense spending by $4.8
billion and slash 300 domestic programs
from the. projections left 'by Jimmy
IT STILL WOULD leave a $45 billion
deficit, partly stemming from
Reagan's separate proposals to cut tax

Budget Director David Stockman toldr
reporters that the administration's ap-
proach would save $409 billion in the
next five years, about three-quarters of
the reductions necessary to meet the
president's goal of balancing the budget
in 1984.
The budget contained $13.8 billion
worth of newly announced cuts, in-
cluding deeper reductions than-
previously sought in welfare, water
projects, job programs, public housing,
food stamps and education. First-time

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reductions in veterans programs, loan
subsidies and dozens of social services
also were proposed.
REAGAN SAID IN his formal
message accompanying the document
that it "will stop runaway inflation and
revitalize our economy if given a chan-
ce." He asked Congress to join him in a
quest to "move America back toward
economic sanity."
The revised budget updated a
preliminary spending cut plan the
president announced last month. It was
sent to Congress along with Reagan's
proposal to trim personal income tax
rates by nearly 36 percent over the next
three years and cut business tax rates
through accelerated depreciation
The Pentagon's share of the budget
would rise from 24 cents of each federal
dollar this year to 27 cents in 1982 and 37
cents by 1986 under Reagan's plan.,
BENEFIT programs that provide aid
to individuals, such as Social Security
and unemployment compensation,
would continue to account for about 48
cents of each federal dollar.
Reagan's spending plan, certain to
stir a rousing fight in Congress, shows a

startling shift in priority from social
programs to a defense system beefed
up by new weapons development.
Like Reagan's previous proposals,
most of the new cuts must still be ap-
proved by Congress and special interest
groups were sure to fight decreases in
their areas. The liberal Americans for
Democratic Action called the proposals
"Alice in Wonderland" economics that
take from the "needy to give to the
* House Speaker Thomas O'Neill (D-
Mass.) assailed the package as leaving
too many questions unanswered and
predicted the current surge of pro-
Reagan sentiment will abate "when
people truly appreciate" what the cuts
will mean to the nation. "Then," he
said, "the wind will blow."
Reagan said his budget recommen-
dations would preserve the "social
safety net" of income security
programs-such as basic Social
Security pensions and regular unem-
ployment benefits-that grew out of the
Great Depression of the 1930s.
And he defended his call for in-
creased military spending on the
grounds that "a margin of safety must
be created by rebuilding the nation's
defense capabilities."

AP Photo'
PLACARDS, SUCH AS these, greeted President Reagan in Canada yester-
day during his first official visit outside the U.S. The term acid rain refers to
what Canadians say is the flow of industrial smoke from the U.S. that turns
into sulphuric acid when mixed with rain.

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Protestors greet Reagan
on first vistt to Canada


From AP and UPI
OTTAWA - Jeered by Canadian demonstrators during his
first official visit outside the United States, President'
Reagan met yesterday with Prime Minister Pierre Trudeau
on problems that come between neighbors.
In public, Reagan and Trudeau spoke mostly of the long
friendship between the two countries, but they made no effort
to ignore the several hundred demonstrators, a noisy minoir-
ity in a largely welcoming crowd. Protestors dramatized
with jeers and placards the differences between the United
States and Canada over energy policy, environmental issues,
fishing rights and U.S. military aid to El Salvador.
THE BRIEF REMARKS by both Trudeau and Reagan
were interrupted by hecklers' taunts. Demonstrators burned
a U.S. flag and shouted "Yankee Go Home!" on Parliament
Trudeau, known for his clever tongue in dealing with
hecklers, returned to the microphone after Reagan spoke.
"Hey guys!" he said to the crowd. "When I go to the United

States, I'm not met by these kinds of signs. You, know the
Americans have some beefs against us, too, but they receive
us politely. Now, how about a great cheer for President 0
SOME OF THE thousands of non-protesting spectators on
the Parliament lawn replied with a lusty cheer.
The two leaders, who had never met, sat down for a 15-
minute introductory chat in Trudeau's oak-paneled office on
Parliament Hill. Then they called in their aides for a
discussion of El Salvador, East-West relations and the poten-
tial impact of Reagan's economic program on the United
States's closest and largest trading partner.
A three-way summit between the U.S., Canada and Mexico
was proposed by Trudeau after Reagan explained his
proposal for a North American accord among the three
"It was a very warm meeting," said White House Press
Secretary James Brady. "I think the president enjoyed
Trudeau and it appeared to be mutual."

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