16
University Daily Kansan
Nation/World
Thursday, Oct. 3, 1985
Dole wants Congress to act on tax plan
United Press International
WASHINGTON — Senate Republican leader Robert Dole yesterday raised hopes for tax reform action this year, but House Democrats split over whether they should challenge President Reagan and turn reform into a tax hike to cut the deficit.
On Tuesday, Reagan vowed to fight for passage of his tax plan this year.
"Yes, it can be passed this year if all do what we should do and quit playing political games; for delay in enacting it there can be no excuse," he said.
Reagan spoke Tuesday in the East Room to a business group supporting his plan to revise the federal tax code.
He said he was convinced that the tax
package would inaugurate a new era of economic opportunity and bring on growth of historic proportions.
After meeting with Reagan at the White House yesterday, Dole raised the possibility of having a prolonged congressional session to deal with the issue, noting, "We're prepared to come back after Thanksgiving to work on a tax bill if it's available."
However, the Kansas lawyer stressed that the Senate needed to receive a bill from the House by Nov. 1 for him to consider a post-Thanksiving session.
With the House Ways and Means Committee making very slow progress as it tries to piece together a bill, there is serious question whether a measure can come from the House by November.
House Speaker Thomas O'Neill, D-Mass., said yesterday that he did not think his chamber could complete action by Nov. 1 and promised only that the House would get it out before they left for the year.
Some of the problems that could delay a tax reform bill emerged yesterday in a closed-door caucus of House Democrats.
A number of members who attended said there was disagreement over whether the money saved by closing tax loopholes and eliminating deductions should go completely toward lowering rates — as Reagan wants — or should be partially considered a tax increase and be used to cut the deficit.
The session, however, was apparently more calm than some members had expected and Ways and Means Committee Chairman Dan
Rostenkowski, D-III., said he was "pleased with the way it went. In fact, encouraged."
Several lawmakers who attended said there was a feeling that the Ways and Means Committee should try to draft a tax reform bill that was revenue-neutral — not raising or lowering government tax revenue.
But they added that they expected moves on the House floor to try to make the bill a tax hike — a prospect many consider to be politically risky in light of Reagan's insistence that taxes not be raised.
"A lot of people feel that the No. 1 issue here is the deficit, not Ronald Reagan's vision of the 35 percent top rate," said Rep. Thomas Downey, D-N.Y., referring to the maximum personal tax rate included in Reagan's plan.
Senate to debate debt limit
United Press International
WASHINGTON — Treasury Secretary James Baker told Congress yesterday that the federal debt limit must be raised by Monday because the government's supply of cash would be virtually exhausted by then.
"I'm convinced that Treasury is being realist when they say Oct. 7 is sort of a 'drop dead day,'" said Senate Republican leader Robert Dole, R-Kan., who indicated the Senate would start work on the debt ceiling legislation today.
At the same time, leaders of a group of senators said they were ready to delay action on the debt increase unless it included a provision to have the budget balanced by 1990.
"This (debt limit bill) is the proper vehicle and this is the proper time and there will be no compromise," said Seen. Philip Gramm, R-Texas, who is leading the effort with Sen. Warren Rudman, R-N.H.
The House already has agreed to lift the federal debt ceiling to $2 trillion — approximately double what it was when President Reagan took office.
Congressman wants AIDS bill
United Press International
WASHINGTON — A conservative congressman, who said "God's plan for man was Adam and Eve, not Adam and Steve," is urging Congress to act to stop the spread of AIDS and said yesterday that he planned to introduce a bill to bar young AIDS victims from public schools.
Rep. William Dannemeyer, R
Calif., said he was seeking support for a series of bills to deal with the growing problem of acquired immune deficiency syndrome.
In a speech on the floor of the House of Representatives late Tuesday, Dannemeyer called for new initiatives from Congress.
He said local health officials should disregard the complaints of the homosexual community and close
"those bathhouses which are known to be places where AIDS are transmitted."
"I don't look at it as an attack on the homosexual community," Dannemeyer said. "I think it's time that someone openly states what the cause of this fatal disease is, who is responsible in our culture for this disease. I have nothing but sympathy and pity for the homosexual."
Group seeks change in air traffic control
United Press International
WASHINGTON — The trade group representing most large U.S. airlines said Tuesday the air traffic control system run by the Federal Aviation Administration could be more efficiently operated by an independent federal corporation.
The Air Transport Association, in a report proposing the change, said the federal corporation concept offered considerable promise in allowing the air traffic system to adapt quickly to changes in the deregulated industry.
Many large air carriers have been frustrated by their inability to expand under deregulation because of limits on air traffic growth ordered by the government
FAA spokesman Fred Farrar said, "We're not going to have any comment at least until we have a chance to look at the report."
Since the strike, the FAA has controlled air traffic growth while veteran controllers trained new hires to join the workforce.
The growth limits were imposed by the FAA after the illegal air traffic controller strike in August 1981 in which President Reagan fired 11,400 controllers.
The report concluded that an independent federal corporation could be set up so it would not have to operate under time-consuming civil service employee rules and could enjoy "businesslike decision making and innovative planning."
"The ability of the system to respond in a businesslike to market demands for (air traffic control) services must be unfettered," the report said. "In the case of airlines, the need to deploy assets as productively as possible, as called for by airline deregulation, requires a corresponding response in ATC services."
Heckler takes post in Ireland
United Press International
WASHINGTON — President Reagan is scouting around for a replacement for Health and Human Services Secretary Margaret Heckler, who he eased out of his Cabinet and appointed U.S. ambassador to Ireland.
Heckler, 54, appeared by Reagan's side in the White House press center Tuesday when he announced that she had accepted the job.
White House Chief of Staff Donald Regan, reported to have been the prime mover in Heckler's ouster, was expected to have a lot of influence in choosing her successor.
Several names have cropped up as possible successors to the position, including John Svahn, assistant to the president for policy development, who had conflicts with Heckler when he was her deputy in the Health and Human Services Department.
Also said to be under consideration was former Health Undersecretary David Swapo, who has just resigned as California's health and welfare secretary to open a health care consulting firm.
However, another potential prospect, Pennsylvania Gov. Richard Thornburgh, yesterday made it clear he would not seek the post. He insisted that he intended to serve out his term as governor and was considering a challenge to fellow Republican, Sen. Arlen Specter, next year for the Senate nomination.
Suspected spy's home searched by FBI men
The Associated Press
WASHINGTON -- FBI agents searched a former federal official's home and car in New Mexico for code pads, microdots and other spy paraphernalia under a warrant seeking evidence of a plot to deliver national defense information to a foreign government.
The search, which occurred between last Friday and Tuesday, became known as evidence emerged yesterday that the official, Edward L. Howard, 33, who was assigned to the U.S. Embassy in Moscow as recently as 1983, flew to Texas more than a week ago leaving even his wife in the dark about his whereabouts.
There were these other developments in the case of the missing official suspected of being a spy for the Soviet Union:
The Santa Fe, N.M., district attorney has obtained an arrest warrant for him because his flight violated his five-year probation on a 1948 gun-brandishing incident.
Colleagues who worked with him in the New Mexico state government said he traveled widely on state business to economic conferences in San Francisco, Boston, New Orleans, El Paso, Texas, and elsewhere. They also said his work led him into close dealings with some workers at the
Los Alamos National Laboratory where top-secret weapons research was done.
And in a Minneapolis suburb, Evar Cedarleal, the father of Howard's wife, Mary, said Howard hadn't been heard from. "She has no idea where he is." Cedarleal said his daughter, who returned Tuesday to their Santa Fe home after a visit to Minnesota, was surprised and upset over her husband's disappearance.
The CIA, the Justice Department, the State Department and the Senate Intelligence Committee all declined to discuss the case. The Senate panel and the State Department said they were awaiting an anticipated Justice statement, but Justice spokesman John Russell said, "Everyone wants us to make a statement and if we're going to make a statement, we'll make one when we're ready."
Howard quit his most recent job, with the New Mexico Legislative Finance Committee in Santa Fe, on Sept. 20 and fled just before FBI agents came to question him about whether he had been a Soviet spy, a U.S. official has said.
This official, who declined to be identified, said Howard was probably one of two ex-CIA men implicated as Soviet agents by a recent, top-level KGB defector, Vitaly Yurchenko.
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