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May 20, 1980 - Image 8

Resource type:
Michigan Daily, 1980-05-20

Disclaimer: Computer generated plain text may have errors. Read more about this.

Page 8-Tuesday, May 20, 1980-The Michigan Daily
Carter advisors urge
grant of tax cut
as fix for recession

WASHINGTON (AP) - President
Carter will be told by his advisers that
he must ease the tax burden on
Americans by backing a tax cut of at
least $30 billion in 1982, if not before,
one government official says.
Some of Carter's advisers voice
frustration that the president remains
opposed to a tax cut in 1981 to help
cushion what they believe will bea wor-
se recession than the administration is
"SOMETIMES IT bothers the
economists that he's so strong about
balancing the budget that he's not
willing to listen to arguments other-
wise," said the official who asked not to
be identified. .
Carter has repeatedly said he will not
propose a tax cut until the federal
budget is in balance, which means
there could not be a tax cut this year
and probably not in 1981 unless

Congress acts on its own.
But the official said economists and
budget-planners at the Treasury
Department, the Council of Economic
Advisers and the Office of Management
and Budget are agreed on the need for a
tax cut in calendar year 1982 at the
"OMB, CEATreasury people will be
saying, 'Look, we can't hold taxes for
very much longer. The burden is rising
so rapidly, you've got to look down the
road,' " this official said. "We will be
arguing, the staff, for an '82 tax cut,
definitely in the next budget."
The official said a tax cut should be
equal to at least one per cent of the
nation's gross national product, which
he said would mean a reduction of
"close to $30 billion."
Privately, the advisers don't rule out
the possibility that Carter could change
his opposition to a 1981 tax cut if the
recession is much worse than predic-
ted. One official said the 1981 budget is
too tight to allow for adequate relief if
the recession is serious.
One administration official said
government receipts as a share of the
nation's gross national product will
rise to a record 22.5 per cent in 1981 and
23.1 per cent in 1982, unless taxes are
Meanwhile, government figures
released yesterday showed the income
of Americans grew sluggishly last mon-
th and factory usage fell as
recessionary conditions continued to
spread through the economy.
The Commerce Department reported
that personal income - which includes
wages, rental income, stock dividends
and interest minus Social Security
payments - grew a scant 0.02 per cent
last month to an annual $2.07 trillion.
The $500 million increase from March
was the poorest monthly performance
since the last recession.

AP Photo
A MIAMI POLICEMAN, with his trained guard dog by his side, takes aim at
looters during riots in the Florida city Sunday. A curfew was in effect Sunday
night in parts of Miami as a result of the violence which left 19 persons dead
and over 120 injured.
Death toll continues
to rise in Miami

(Continued from Page 1
fatalities since Newark and Detroit ex-
ploded in 1967's "long hot summer."
More than 370 people have been in-
jured and nearly 500 arrested in the
strife triggered by acquittal in Tampa
on Saturday of four white ex-policemen
in the beating death of a black Miami
Several fires were reported after the
curfew lapsed at 6 a.m. yesterday, and
looting and b9ttle throwing persisted,
but police said physical violence


declined. Heavily armed' guardsmen
and state and local officers roamed the
city's trouble spots.
BARS WERE closed and liquor sales
prohibited throughout the area except
in nearby Miami Beach, and service
station attendants in the troubled
neighborhoods were told to pump no
gas except into vehicles. Firearms
sales were curbed as well.
(Continued from Page 6)
vironmental neglect," Civiletti said,
"but it has issued too many regulations
and made them too tough."
The Attorney General stopped short
of maintaining that the government has
overregulated, stating instead that "we
may have gone too fast in some areas
and too slow in others ... None of us can
abandon the environmental protection
effort in the name of regulatory reform.
We must have environmental laws ...
and we must have stronger enfor-
cement to protect the public."
The 45-year-old Civiletti said these
measures were part of the "earnest"
effort by Congress in the 1970s-which
he called "the environment
decade"-to tackle the problem of ex-
cessive environmental pollution.





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