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