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May 19, 1981 - Image 5

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Publication:
Michigan Daily, 1981-05-19

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. The Michigan Daily-Tuesday, May 19, 1981-Page 5
CONGRESS SEEKS TAX-CUT COMPROMiSE
Reagan maybargain

From APand UPI
WASHINGTON - Convinced that
President Reagan wants to avoid a
knock-down battle, the top Democratic
and Republican tax-writers on Capitol
Hill sought yesterday to strike a com-
promise over his proposed multiyear,
30-percent cut in income taxes.
Administration officials involved in
formulating tax policy said the
president has no intention of taking the
first step toward compromise by
altering the three-year proposal he
submitted to Congress in February.
HOWEVER, THE administration will
remain in close contact with.
congressional leaders to advise
whether an alternate plan might be ac-
ceptable to the president, said the of-
ficials.
The administration sent several
signals last week that it could live with
something less than the president's

plan, which would cut tax rates across-
the-board an average of 10 percent in
each of the three years. But there was
little expectation in Congress that
yesterday's meeting of key lawmakers
would lead to any immediate com-
promise.
"It was an exploratory, friendly get-
together," said Senate Finance Com-
mittee Chairman Bob Dole (R-Kans.).
HE SAID THE GROUP reached "no
agreement" on tax policy, but there
"was never any intention" of reaching
an agreement in the first meeting. The
purpose was "to see what we each have
in mind and to see if there is some
common ground," he said.
Congressional observers called it un-
precedented for tax-writing leaders to
caucus before writing a bill. Usually,
such sessions are reserved until each
side has written its version and they
meet to seek a compromise.

DOLE AGREED THE meeting was
unusual. But, he said, "It's unpreceden-
ted to have two new chairmen. We don't
have to do business the same way."
None of the four senior tax-writers
has been a strong advocate of the
multiyear proposal, which is the heart
of the president's program to direct the
economy onto a course of stable
growth. Most have expressed fears that
locking the economy now into a tax
reduction in the future carries heavy
risks for increasing inflation.
Until last week, Reagan and his
spokesmen had insisted they would not
back away .from the three-year plan,
the full 30-percent reduction in rates
and the idea that taxpayers at 'all in-
come levels should get the same rate
cut.
BUT EVEN WHILE the president
was riding high with major victories in
the House and Senate for his budget-cut

proposals, senior lawmakers were
telling the administration the tax cut
was in trouble. Dole said most of his
Republican-controlled committee op-
posed it; House Republican Leader
Robert Micsel said he lacked the votes
to pass it; and Rostenkowski claimed
majority support on Ways and Means
for his own substitute, one-year tax
reduction.
Testifying before the Finance Com-
mittee last week, Reagan at one point
urged a "multiyear" - rather than
"three-year" - tax cut
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Supreme Court
ruling will
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WASHINGTON (AP)-In one of a
string of rulings announced yesterday,
the Supreme Court gave criminal
suspects two important new tools for
preventing their own words from being
used against them.
The justices ruled that murder
defendants must be warned prior to
psychiatric testing if the test results
would be used after a conviction to help
choose between life imprisonment or
death as punishment.
THE COURT said its controversial
"Miranda doctrine"-which requires
that criminal suspects be warned of
their rights to remain silent and to have
a lawyer's help during
questioning-applies to such situations.
The justices voted unanimously to
overturn the death sentence of convic-
ted Texas murderer Ernest Benjamin
Smith. The ruling likely will affect at
least 30 other death row inmates in
Texas.
In a unanimous decision, the court
also sharply limited police officers'
power to question criminal suspects
who ask' to have a lawyer present
during interrogation while in police
custody.
THE JUSTICES overturned the con-
victions of Robert Edwards, who had
been convicted of robbery, burglary
and first degree felony murder stem-
ming from an October 1974 armed rob-
bery at a bar in Tucson, Arid. Edwards
asked for a lawyer when he was
arrested on Jan. 19, 1976, but the
following morning was questioned by
two police officers after being told he
"had to" talk to them,
In a case pitting academic freedom
against free speech, the justices agreed
to study whether a private university
car bar unwanted political activists
from its campus. The justices agreed to

review a ruling that overturned the
trespassing conviction of a U.S. Labor
Party member arrested for distributing
leaflets on the Princeton University
campus in 1978.-
The justices agreed to decide whether
mentally retarded people committed to
state hospitals must receive the "least
intrusive" adequate treatment. The
case, involving Pennsylvania's Pen-
nhurst State School and Hospital, could
revolutionize treatment of some 150,000
state mental patients nationwide.
THE HIGH COURT turned away
convicted Watergate burglar James
McCord's $10 million lawsuit against
the law firm of famed attorney F. Lee
Bailey. At the same time, however, the
court also rebuffed an appeal by
Bailey's .firm,thus keeping alive Mc-
Cord's last hope of winning. The
justices simply declined to consider the
two closely linked appeals.. The con-
troversy now returns to a federal trial
court.
Voting 5-4, the high court also ruled
that Hustler magazine publisher Larry
Flynt must stand trial in Cleveland on
charges of pandering obscenity. The
justices ruled that Flynt's magazine
was not a target of selective and
discriminatory prosecution.
A state trial judge ruled that
Cleveland police had singled out
Hustler for discriminatory prosecution,
but his ruling was overturned by an
Ohio appeals court and the state's
highest court.
Refusing to reinstate the sodomy
convictions of four New York state
residents, the high court let stand a
ruling that New ' York uncon-
stitutionally outlawed consensual.
sodomy. Most states have similar laws.
. The court's action came in a single ap-
peal stemming from three separate
New York'cases.

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