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July 23, 1980 - Image 31

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Text
Publication:
Michigan Daily, 1980-07-23

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The Michigan Daily-Wednesdoy, July 23 1980-Page 11
CALLS GOP PROPOSAL 'A GREAT HOAX'
ller scoffs at tax cut plan

WASHINGTON (AP) - Treasury
Secretary G. William Miller told
Congress yesterday it would be "a
great hoax on the American people to
give them a pre-election tax cut" and
take it back later in the form of higher
inflation.
Testifying before the House Ways and
Means Committee, Miller scoffed at a
$36 billion Republican' tax-cut plan,
calling it a '"free lunch."
CHALLENGED BY Rep. Willis
Gradison (R-Ohio), to submit to
Congress in this election year what he
considered a good tax cut, Miller
replied, "If we came up with a bill that
we thought was right, it would be like
putting red meat before a hungry dog
and saying, 'sit'."
Miller was the first witness as the
committee opened hearings on whether
a tax cut for next year should be passed
now. The hearings were forced by
pressure from GOP presidential
nominee Ronald Reagan and his
congressional backers to pass a tax-cut
bill this summer.
The treasury secretary agreed a tax
reduction early in 1981 may be
desirable, said Congress should con-
sider some relief from higher Social
Security taxes, and promised the Car-
ter administration will back some kind
of business tax cut aimed at revitalizing
the economy.
Professor
predicts
probable
Soviet-
SU.S. clash
(Continued from Page 3)
the U.S. in the future, he does not think
it will be over Afghanistan. "By all
strategic criteria, Afghanistan is within
the Soviet sphere of influence. All (Car-
ter's) fuss does is create expectations
that can't be satisfied unless ground
forces are committed, and that's
unlikely," he said.
"Afghanistan in no way jeopardizes
or 'vital interests' in any expert's
opinion," Singer continued. "It is the
least efficienttroute for the U.S.S.R. to
follow to jeopardize Mideast oil sup-
plies."
SInger theorized that a potential for
U.S.-Russian conflict could occur in
Turkey or Iran. He also expressed con-
cern over recent events in Mexico.
"There may already be some small-
scale insurrection in Mexico that we
haven't heard about," he said. "The
military may make a move within the
next six years, and then the Cubans will
come to help the insurgents."
Singer said although he is against the
draft, he doesn't feel that resisting
registration will help the world
situation. "It's not doing a thing. I ob-
ject to the simple-minded notion that
going back to conscription makes war
more likely. But even if these people
believe that, they need to explain their
position better. 'Hell, no, we won't go' is
not a very good explanation."

MILLER FOUND support among
senior Democrats on the panel for the
Carter administration's position that
any tax-cutting action now would wor-
sen inflation without providing any
assurance that it would combat the
growing recession.
"In my travels the message is
becoming increasingly blunt: "We
don't want a political tax cut'," said
Rep. Al Ullman (D-Ore.), chairman of
the committee.
"Taxpayers instinctively support ef-
forts to hold the line on federal spending
and deficits," Ullman added. "They
very clearly understand that tax cuts
increase deficits and deficits increase

inflation - as well as interest rates."
REP. BARBER Conable of New
York, senior Republican on the com-
mittee, disagreed.
"The ability of the American tax-
payer to meet the cost-of-living is in
serious jeopardy because of real tax in-
creases occasioned by high rates of in-
flation" and by rising Social Security
taxes, Conable said.
"Enough is enough," the GOP
lawmaker added. "The time for a tax
cut to go into effect is in January of
1981, and this requires action by this
Congress in 1980."
President Carter and his advisers
argue against passage of a tax cut this

year on two principal grounds: " Fir-
st, they say, it is too early to chart the
course of the current recession. Any tax
cut passed now - even though it would
not go into effect before Jan. 1 - might
be the wrong prescription for the
economy five months from now.
" Second, they say there is not
enough time left in the 1980 session for
Congress to thoughtfully consider the
elements of a tax reduction. The closer
the Nov. 4 election comes, the more dif-
ficult it will be for lawmakers to resist
pressures for expanding any tax cut.
This is what prompted Miller's line
about a hungry dog.

AT SCHLUMBE

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