The Michian Daily--Thursda. July 30, 198 Page 5
48 DEMO(RA TS DEFY PAR TY LEADERSHIP
Reagan's taxcut triumphs

From AP and UPI
WASHINGTON.- President Reagan
won the largest tax cut in history
yesterday when 48 Democrats defied
their leaders'and carried his multi-year
program to a 238-195 margin in the
House after it sailed through the
Republican Senate. e
The. votes handed. Reagan his
sweetest congressional victory, even as
House and Senate negotiators settled

the final terms of the $35-billion budget
reduction he'd won earlier with the help
of fewer Democrats.
THE DECISIVE tax vote was the 238-
195 tally by which the House rejected a
rival tax cut written by the majority
leadership. The Reagan bill was then
passed 323-107, barely an hour after the
Senate approved a similar version 89 to
11.
Reagan celebrated the crowning of,

his economic recovery plan by saying
"the victories we have won do not
belong to any one individual or one par-
ty or one administration."
Angry Democratic leaders didn't see
it that way. House Speaker Thomas
O'Neill Jr. said it was a big day for
aristocracy, first a royal wedding and
"this afternoon... a royal tax cut."
BUT REAGAN, in the Oval Office,
said his tax cut "has removed one of the
most important remaining challenges
to our agenda for prosperity . . ."
"We have made a new beginning," he
said. ''We are back on the right road.
We are making progress. And if we
keep working togetfer, we. can reach
that new era of prosperity we all want."
The House and Senate bills now go to
a conference committee to work out the

relatively few differences. The Senate
is scheduled to vote Thursday on adding
its language to the House bill, a
technicality in the legislative process
that gives the conference committee
one bill in two different forms.
INTENSIVE PERSONAL lobbying
on the part of the president, aided by a
flood of phone calls and telegrams from
constituents, was too much for the
Democrats, who argued their bill would
do more for Americans with incomes
below $50,000.
The Democratic bill called for a 21-
month, 15 percent tax cut targeted at
middle-income Americans, which
would have been extended a third year
if the economy improved in line with
administration projections.

Congress-agrees on.
1982 spending cuts

WASHINGTON (AP)-As both
chambers reached showdowns on a tax
cut, House and Senate negotiators
struck a final compromise yesterday on
the other half of President Reagan's
economic recovery program: more
than $35 billion in spending reductions
for fiscal 1982.
Leaders of the largest conference
committee in history announced that
after two weeks of work they had
resolved the hundreds of differences
that existed between separate budget
bills passed by the Senate and House.
SEVENTY-TWO senators and 183
representatives served on the panel,
which was split into 58 subcommittees.
The original bills generally adhered
to a spending plan outlined by Reagan,
and the conference bill also gives the
president most of what he sought.
The full House and Senate are
scheduled to vote on the compromise.
Friday, with passage virtually assured.
THE BUDGET contains major
reductions in-dozens of welfare, health,
food, farm, education, employment,
transportation, and arts and science
programs.
Some programs would be eliminated
altogether, such as the $122-a-month
minimum benefit for Social Security
recipients and public service jobs under
the Comprehensive Employment and
Training Act.
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In other cases, such as food stamps,
spending would be reduced by
tightening eligibility standards.
One of the areas in which program
cuts were approved was in student
loans. Students from families earning
up to $30,000 a year would qualify for
federally guaranteed loans without
proving financial need. The House
would have provided all student ap-
plicants to prove financial reed regar-
dless of family income, while the
Senate would have let students from
families earning up to $25,000 a year
qualify before proving need. Currently,
students can borrow regardless of
family income.
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