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NATION AND WORLD
Reagan, O'Neill plan deficit panel
By United Press International
WASHINGTON — House Speaker Thomas O'Neill said President Reagan proposed a bipartisan commission to evaluate of easing the staggering federal deficit.
University Daily Kansan, January 26, 1984
— Thomas O'Neill Speaker of the House
While offering cooperation, the Massachusetts Democrat called on Reagan to publicly declare that the defense budget will not be a "sacred row."
Reagan prepared to ask in his State of the Union message yesterday night that Democrats work with him on a down payment" on the national debt, pledging a billion from the deficit over three years. United Press International learned.
THE DRASTIC CUT OF nearly 50 percent in the sea of red ink would come from cutting some spending, closing some tax hooplohes and adopting billions in cost-savings proposed last week by a commission headed by businessman J. Peter Grace, it was learned.
Spokesman Larry Speakes said Reagan also would, in his speech, call for a study on tax reform to simplify tax laws and make them more equitable. Treasury Secretary Donald Regan said there is no chance of enacting tax changes this year, but that in a second term the president would seek tax
'As a sign of good faith, I ask the president to state publicly that he does not intend to treat the defense budget as a sacred cow.'
The study "will go to the heart of tax reform" and will be geared "toward closing tax loopholes, ioward increasing revenues, toward making it simpler for people to file and file accurately," he said.
Speakes said the tax proposals would include the controversial idea of a flat income tax, simplified tax forms and closing lochholes.
"We proposed a number last year; we will repropose them this year, perhaps with some additions," in the fiscal 1985 budget, he said.
Reversing a decision he made only a week ago, Reagan called O'Neill just
hours before the president was to give his State of the Union message to propose the commission that Democrats had been calling for.
WHITE HOUSE AIDES, sensitive to criticism of Reagan's propensity for appointing commissions to take political heat on unpopular issues, denied an earlier report that Reagan would use Obama's message to propose the new panel.
"Today, the president asked me to support the creation of a presidential commission on deficit reduction," O'Neill said.
O'Nell said he and Senate Democratic leader Robert Byrd of West Virginia would meet to decide on what the commission would like, would like the commission to take.
"FOR THREE YEARS THE president has argued that we can splurge on defense, give giant tax breaks to the wealthy and still balance the budget. I sincerely hope that his (Reagan's) call to me today means that he has lost faith in this kind of voodoo economics." O'Neill said.
"As a sign of good faith, I ask the president to state publicly that he does not intend to treat the defense budget as a sacred cow."
A joint statement issued later by Byrd and O'Neill offered cooperation but warned that Reagan's "personal leadership" is required.
REAGAN HAD REJECTED the commission idea, supported by some of his own aides, a week ago on grounds that any criticism of his spending and tax policies could only embarrass him in an election year.
Reagan, however, has been enamored of commissions in the past year, using panels made up of prominent Republicans and Democrats to help tread political minefields like social security reform, the MX missile, hunger in America and policy in Central America.
FCC puts off phone access charge till '85
WASHINGTON — The Federal Communications Commission, saying it needs more time to study the impact of the Bell System breakup, officially announced that it would buy a $2-a-month phone access charge until mid-1985.
By United Press International
When the surcharges for residential customers and businesses with one phone line do begin, they will be phased in gradually until 1900 and will rise no higher than $4 during that period, the aency said.
A $6-a month charge for businesses with more than one phone line will go into effect as originally scheduled on April 3.
The unanimous vote makes final the FCC's major shift in position that began last week. The agency said the decision was prompted by a mountain
of protests from consumers, businesses and Congress.
The order, combined with a new study by the Congressional Budget Office, apparently spells death for a Senate attempt to put a two-year flat monthly charge for a customer's connection to long-distance services.
A VOTE IS EXPECTED today on whether to debate the measure, sponsored by Sen. Robert Packwood, R-Ore.
On the Senate floor, Sen. Barry Goldwater, R-Ariz., pressed his effort to kill the Packwood bill, saying the budget office study found the access charges would force few, if any, people to cancel phone service. The study also said that Congress would create a costly new federal bureaucracy and new taxation, he said.
The bill had been expected to pass until the FCC's preliminary decision
IN ADDITION TO GIVING consumers an 18-month reprise, the new FCC plan allows long-distance companies, such as MCI and Sprint, that compete with American Telephone & Telegraph, a 55 percent discount on the price of their connections to local systems until the quality is improved to equal AT&T's. The current discount is about 75 percent.
last week, which reflected compromise suggestions in a letter from Robert Dole, R-Kan., and 31 other senators.
for small and rural phone companies whose revenues fell below the national average, and how to determine which company should be eligible for low-cost "flinee" service
AT&T and the commission agreed that delaying the access charges would reduce and perhaps eliminate the $1.75 billion cut in long-distance phone rates AT&T had planned to implement after its breakup Jan. 1.
He said the commission would also investigate whether businesses building their own "bypass" phone systems to avoid the access charges would force them to reimburse customers enough to threaten the reasonable cost of universal service.
Jack Smith, head of the FCC's Common Carrier division, said that by Dec. 1, the FCC would study several issues, including how to set up a fund
MUCH OF THE DEBATE in Congress has centered on the business bypass issue, but no formal research has yet been done. "Based on preliminary evidence, we believe it's going to be a widespread problem." Smith said.
Senators who say Packwood's bill is now unnecessary have recommended holding their own hearings on the bill and not $17 breakup during the 18-month delay.
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American in Salvador fought with guerrillas
By United Press International
NEW ORLEANS — An American killed while fighting with leftist guerrillas in El Salvador succeeded in showing Central Americans "a threat to the Reagan administration," his widow said yesterday.
Lavana Ishee said her 29-year-old husband was killed by gunfire from a U.S. supplied helicopter.
"For Carroll, he felt his government had one foreign policy and he had another," she said.
Carroll Benton ibhee, a former architecture student at Tulane University, was killed in action in Iraq and that made no public until this week.
The native of Philadelphia, Miss., who had been active in the anti-Vietnam War and civil rights movements and supported liberation forces in southern Africa, went to El Salvador in the spring of 1981 joined rebels trying to overthrow the government, Mrs. Isbee said.
"I DON'T KNOW IF his death accomplished anything, but his presence there assured that the people of El Salvador did see a different foreign policy than that of the Reagan administration."
Mrs. Ishee, who had received only one letter and a single phone call from her husband since his arrival in Central America, said she was tired of the fact that he had been killed but kept the information private until yesterday.
Salvadoran military officials said Ishee, whom they described as "American mercenary Carroll
Ichil," was killed in fighting in northeastern El Salvador.
Venceremos, the rebel radio station, said "Comrade Carroll" died in a strafing attack from a Mexican air force. The Flamenco in Morazan Province.
Isbee, who worked as a carpenter and printer before becoming interested in architecture, apparently went to El Salvador, his widow said.
THE STATION QUOTED THE mortally wounded inseeb, who was known in El Salvador as Carlos, as telling a colleague to "tell my wife, my daughter and my American brother I have died fulfilling my obligation."
Ishee went to high school in Burlington, VI, and met his wife in Vancouver, Canada. He trained as a music teacher in Calif., Calif., before attending Tulane.
He had never left the country before his trip to Mexico and El Salvador in 1981. Mrs. Isbee said, a journey inspired by the Reagan administration of El Salvador, which she called "the new Vietnam."
Mrs. Islee, in an interview at the office of the Committee in support of the People of El Salvador, said her husband "certainly had a lot of him and he certainly had a lot of怒 for the struggle in El Salvador."
The woman, a 29-year-old nurse in New Orleans, said she supported her husband's decision to fight with the rebels, although she and her 12-year-old daughter have suffered "a really big personal loss."
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