NATION AND WORLD
University Daily Kansan, February 29, 1984 Page 12
N
Deficit-cutting talks are still deadlocked
By United Press International
WASHINGTON — President Reagan's bipartisan deficit-cutting panel foundered yesterday, with Republicans upset with a Democratic proposal to raise taxes and neither side optimistic that talks could continue.
But a White House spokesman, blaming Democrats for the impasse, said the administration had not yet abandoned hope of success.
Emerging from the 1½ hour meeting, the fourth since Reagan called on the panel to formulate a $100 billion "down payment" on the nearly $1.5 trillion federal debt, both Democrats and Republicans sounded discouraged about the talks. None, however, was willing to call them off.
Wright made his proposals in a letter to White House aide James Baker in which he accused the administration of being inflexible on the subject of
House Democratic Leader Jim Wright of Texas suggested that the panel consider tax hikes and other revenue-raising plans and outlined five possibilities. One suggestion was elimination of the third installment of Reagan's 25 percent tax — a move that would still $9 billion from the deficit in three years. Another was to postpone tax indexing for three years — a saving of $54 billion. But the panel could not agree on any of the revenue plans.
They also were unable to agree on a plan by Sen. Pete Domenici, R-N.M., to cut defense spending by $80 billion over three years.
Assistant House Republican leader
"I think we were staggered by the demeanor and the substance he (Wright) put on the table today." Lott helped me to an ulcer; he's trying to give one me.
Wright said administration representatives did not accept any of his bills.
He said he was not ready to quit the talks but reiterated that the real deficit-cutting must be done in Congress.
Trent Lott of Mississippi stopped short of labeling Wright's proposals an attempt to scuttle talks. But, he warned, "If the Democrats are talking about that kind of tax increases and higher defense cuts than what Domenic proposed, I don't know if there is much hope."
White House spokesman Larry Speakes later summoned reporters and told them: "Our position is we have reviewed what's happened today and we have not yet abandoned hope of success.
we set out to try to get agreement on the less contentious items. That seemed to be possible were it not for the fact that the Democrats were intent on such proposals as repeal of the third-year tax cut and indexing."
United Press International
Speakers said no date had been set for the next meeting but that he expected it to be done.
SPRINGFIELD, III. — Despite sub-freezing temperatures, Phil Hoggyg went outside without a shirt to cool snow yesterday. Hoggyg said he once participated in an experiment which showed that temperature had no relation to the common cold.
He said that Wright's proposals were subject to analysis, but did not think the president would ask for repeal of the third-vear tax cut or of indexing.
Reagan has balked at using taxes to curb the deficit gap. He has been equally reluctant to reduce the deficit at the expense of defense spending.
U. S. District Judge Sylvia Rambo delayed a decision until today on whether to accept the plea bargain. She must also decide whether to accept the deal.
The charges arose from a grand jury indictment in November that alleged that the utility falsified key leak records at the plant before the March 1979 accident, the worst in U.S. nuclear history, at Three Mile Island's Unit 2.
WASHINGTON — Air Force officials told Congress yesterday that the B-1 bomber program was ahead of schedule and under budget, and the first of the 100 new planes would come off the assembly line in September.
The case was the first time a utility has been prosecuted under the Atomic Energy Act, which provides for Nuclear Regulation and other regulations over the nuclear industry.
Air Force Secretary Verne Orr, under questioning by Sen. Bennett Johnston, D-La., also identified two Air Force programs that would be cheaper to cut now than later, when far more money was available, did not suggest that they be eliminated.
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By United Press International
Force chief of staff, detailed the Air Force's $107.7 billion share of the $305 billion defense budget.
Under a plea bargain between the Metropolitan Edison Co. and the U.S. attorney's office, Met-Ed agreed to pay for damages. The attorneys agreed to drop four other charges.
Orr said the first B-1 had been due to roll off the production line Oct. 6 but that date had been moved into September. The entire program, he said, is about six months ahead of schedule and coming in under budget.
The plea bargain, officials said, will not affect an NRC decision on whether to allow the plant's owner, General Public Utilities Corp., to restart the undamaged Unit 1, which was closed for maintenance at the time of the accident at Unit 2 and has not reopened since.
Orr and Gen. Charles Gabriel, Air
He also insisted that the Air Force had no plans to buy more than the planned 100 of the expensive bombers. The B-1 is expected to cost roughly $200 million each, and that program will be followed by the "stealth" bomber, expected to be invisible or nearly invisible on radar.
HARRISEBURG, Pa. — The former operator of the Three Mile Island nuclear plant pleaded guilty yesterday to one count of falsifying records and no contest to six other charges in the first criminal case of its kind.
B-1 bombers to be completed by September under budget
Nuclear plant charged $45,000 for falsification
By United Press International
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