The Michigan Daily-Thursday, March 12, 1981-Pagoe 7


Reagan's i
poor hard,
with incom
WASHINGTON (AP) - President Bosworths
Reagan's economic program would brunt," he s
redistribute income from the poor to While be
the rich, but if it works, everybody Medicare
could benefit in the long run, indepen- reduced, h
dent economists say. middle-inc
Affluent Americans - who have been aimed at
subsidizing social programs for the less Medicaid,i
fortunate - would receive the largest housing a
reductions in their federal tax burden slashed.
under the Reagan plan. Housing, food, IN At
welfare, and health benefits would be ministratio
slashed to make up for the lost revenue. are, in doll
POORER AMERICANS also will be
hit hardest by the deregulation of
domestic oil - and possibly of natural
gas - since they spend a much greater
proportion of their weekly budget on
fuel, the private economist said. Oil and
gas companies, and their investors, will
benefit most.
But independent economists inter-
viewed yesterday said if Reagan
achieves his goal of spurring economic
growth and improving productivity, his
plan will cut inflation and create more
jobs.
These "trickle-down" effects even-
tually would benefit less fortunate
Americans enough to at least make up
for their initial losses under the
proposed budget cuts, the economists
say.
"IF YOU ARE IN the upper half of
the nation's income distribution, you
ought to be overwhelmingly-in favor of
Reagan's program," said Barry
Bosworth of the Brookings Institution.
The budget cuts - totaling $48.6
billion - will fall most heavily on those

rogram
helps af
nes below $20,000 a year, the upper-m
said. "They will feel the said Boswor
said. A four-n
asic Social Security and $15,000 a ye
benefits have not been save about
e said these are essentially year scenar
ome programs. Programs annual incor
the least fortunate - to .keep ab
food stamps, welfare and federal taxe
ssistance - all will be Walter H
1964 Kenne
DDITION, THE ad- question" t
n's proposed tax reductions and spendin
Lar terms, much bigger for income grow

hits

unt
niddle class and the wealthy,
rth.
member family earning
ar in taxable income would
$900 under Reagan's three-
rio, while a family with an
me of $100,000 would be able.
out $17,000 it now pays in
es.
eller, who helped design the,
dy tax cut, said there's "no'
that the combination of tax
ng proposals provide upper-
ups with most of the breaks.

I

Angels guard AtlantaP
Members of New York City's Guardian Angels arrive in Atlanta yesterday. The group was orginally formed to patrol
New York's streets and subways in an attempt to fight crime. Members hope to teach Atlanta's black youth how to
protect themselves in a city tormented by a 19-month string of 20 child killings.

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pLANSING (UPI) - The Senate placed in position for final Meanwhile, the House Taxation Committee took the first
S e'n a IP passage yesterday a plan to delay for three years a tax step toward putting together a property tax plan legislation
reform law which would cause massive property tax hikes in when it informally approved a program coupling a 50 percen
some communities. tax cut with a hike in the state's sales tax.
After two hours of debate, the upper chamber favored the FOLLOWING A MEETING with legislative leaders on the
y d ela y moratotium on forcing local governments to tax all property tax issue, the governor said no firm decision has been made
at the same rate after rejecting a plan phasing in the on giving breaks to taxpayers in the 16 cities with income
statute's effect over four years. taxes.
BUT EVEN IF THE three-year delay wins Senate passage, "But it's certainly reasonable to consider it and probably
ta x i k ei Cits future is in doubt. The House already has refused to act on in the end to put it in," Milliken said.
similar legislation and Gov. William Milliken has promised The governor said there was "good reason to believe" the
to veto any moratorium on the law. issue would be resolved this week.
Milliken expressed support yesterday for-including local State Budget Director Gerald Miller told a group of Lan-
I~io i-i .j income tax relief in a property tax reform program and said sing journalists the property tax plan would be easier to seel
he expects agreement on a plan this week. to legislators.

i
i
l

MCi

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Israeli

journalist accepts

censorship as part of job

(continued from Page 1)'
Reagan Administration, the El
Salvador situation, and prospects for
peace in the Mideast.
When 30 Soviet planes were found in
Cuba two years ago, America . "almost
exploded," according to Schiff. He said
imost Americans fail to realize that a
small country like Israel-about the
size of New Jersey-regularly faces
about 150 hostile planes on its borders.
THOSE IN THE United States, Schiff
said, must realize-others have similar
problems, and Americans should not
"rush and use big armor to kill a fly."
On increased attention to El
Salvador, Schiff said the United States
is lucky a war has never reached its
shores. "Here suddenly something is
near your threshhold," he said.

"Reagan will be much tougher (than
Carter) toward El Salvador. I hope he'll
take it in proportions-like you usually'
tell us."
Schiff said -Israel has high expec-
tations for Reagan because of the
president's commitment to strengthen
American defense posture in the
Mideast and his campaign remarks
that he doesn't see the abolition of all
Israeli settlements as a prerequisite for
peace.
ISRAEL WAS, however, against the
recent U.S. sale of F-15 fighter planes to
Saudi Arabia, Schiff said. "It's a moral
question. Carter made promises about-
sophisticated equipment like the F-15.
It'sa question of whether you can rely
on promises," he said.
"It's the same as if someone took

over for (Israeli Prime Minister
Menachem) Begin and threw out all his
promises," Schiff explained.
The journalist said Israelis would
never have given Reagan a welcome
like the one he received this week in
Canada because the United States'and
Israel have different grievances.
"The U.S. and Israel are within the
same family," Schiff said. "The U.S. is
like an older brother. We share the
same values and have a warm attitude
toward people."
Despite all the battlefields and defen-
se statistics he has seen, Schiff con-
tinues. to be optimistic about prospects
for peace in the Mideast.
Schiff said the current period in
Israel is different because there is
peace.

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Loan interest up in Reagan plan

"But I

love my

(Continued from Page 1)
taxpayers, should get the same benefits.
Sens. Bob Packwood (R-Ore.) and
Daniel Maynihan (D-N.Y.) are leading
the congressional fight for such
legislation. Their proposal would
provide tax write-offs for parents of all
college and post-secondary vocational
students.
THERE WOULD BE'a ceiling of $250
the first year and $500 the second on
-how much write-off taxpayers could get
regardless of how much they pay in
tuition.
The Congressional Budget Office has
BELL'S
GREEK
PIZZA
Grinder's &
greek Soled
Eat In or Take Out,

not made a cost estimate on the plan,
but past estimates on similar plans
have run in the neighborhood of $5
billion, depending on whether the poor
who pay little or no taxes could get the
credits in the form of refunds.
In further budget-cut planning
yesterday, the chairman of the Senate
Budget Committee, Sen. Peter
Domenici (R-N.M.) suggested surgery
on annual cost-of-living increases in
Social Security benefits.

Although President Reagan has not
recommended such a move, Domenici,
who is considered to be Congress' top
economist, said he doubted the
president "could afford to be critical" if
Congress voted such changes as part of
a package of spending cuts.
Changes such as those suggested
would affect 10 million people or more a
year and could cut spending by more
than $3 billion in 1982 alone.

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