. 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 ;EUROPE/Israel LOW COST FUIGHTS Center to, Student Trave( 1140 Broadway New York, NY 10001 (212) 689- 880 500 223-7676 "OUR 6th YEAR Supreme Court ruling will protect suspects 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. . 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