Evening star., 1963-01-14

VlOIISllOIO I
DisogreeO O
Democratic and Republican
leaders today registered their
customary disagreement over
the Presidents State-of- the
Union message. especially his
tax reduction program.
I'VE have got to start the
economy with a tax cut which
gives greatest benefit to low
income groups" said Senate
! Democratic Leader Mansfield.
1T is going to have a hard
look" said Senate Republican
Leader Dirksen.
Chairman Harry F. Byrd of
the Senate Finance Committee,
which will handle the tax bill,
said again today he will work
| for tax cuts only if Federal
spending is reduced accord
ingly. He said the forthcoming
budget message will indicate
the administrations attitude in
this respect.
Sound Fiscal Policy
Balanced Federal budgets
with both taxes and expendi-
lures reduced will be sound
fiscal policy" Senator Byrd
said. II hope this will be the
administrators policy"
But he added that this would
reverse the administration
fiscal record to date. pointing
out that the administration
raised spending in 1862 with q
$6.4 billion deficit and is doing
the same this year with a
deficit of at least PTS billion.
ITO raise expenditures to a
level approaching $100 billion
in the coming year. and reduce
taxes by the amount proposed,
could result in a deficit of at
least SIS billion"
Referring to the message in
its entirety, Senator Mansfield
said the President has made
a great and honest appraisal
of where we stand and where
we must go as a nation"
Lauds Emphasis
He has weighed the state
Of the Nation and the world
with the utmost realism and
has expressed a well-founded
hope for the future" Senator
Mansfield continued. by put
ting domestic needs first he has
put the emphasis where it has
not been for a long time on
the needs Of the American peo-
pie"
In addition to supporting the
tax cut, Senator Mansfield
said. Congress must meet the
expanding needs Of young peo-
pie and the health facilities for
older people. as we'll as trans
portation and recreation facil-
, tiles.
And we have got to meet
the fundamental problem of
assuring equality Of treatment
for all our citizens" the DEM
ocratic leader added.
On the world situation, SEN
ator Mansfield said there is
a reminder to Western Europe
that cooperation is a two-way
street. He said the President
also gave a realistic appraisal
Of foreign aid.
Less Spending Needed
Senator Dirksen said tax re-
duction must be accompanied
by less spending, and should not
; be loaded down with tax re-
forms which Congress and the
country would not accept"
The Republican leader said
he wants to see what reforms
the President has in mind
which were not disclosed today
He singled out as proposals
! that would have trouble getting
through Congress as a cut In
the oil depletion allowance, re-
peal Of the dividend credit. OF
repeal OF the Joint return not
! allowed married couples.
Senator Dirksen said he
would not condone the meat AZ
! approach" TO economy. but saic
appropriations could be cut
carefully with a scalpel."
Chairman Mills Of the House
Ways and Means Committee
declined comment on the Ken.
nedy tax proposals except u
say they would be the frs
order Of business for his tax,
writing committee.
Senator Russell B. Long. oI
Louisiana, second ranking
Democrat on the Senate Fl.
nance Committee. said. "Ir
general. l feel there should bC
a tax cut " My guess is that
some OF the Presidents pro-
posed reforms will be un-
popular and some will be de-
feated.
IF he puts II all In one bill,
he may lose 30 much OF II tthe
program that the whole bill