Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-03-17


forecast Of an $ll,9-billion
deficit may prove over-pessi-
mistic.
Mr.. Boggs, who is House
majority whip and member Of
the tax writing Ways and
Means Committee, also accused
Republicans OF conducting ian
exercise In hypocrisy" by call
ing for budget cuts and then
voting for a bill containing an
increase Of nearly one-half
billion dollars over Mr.. Ken
nedy's recommendations for
spending on planes, missiles
and ships.
During the past 10 days
spokesman for a wide variety
OF interests have contended
that Mr.. Kennedy's proposed
first-stage tax cut. SO billion
effective this year. is made
quate for the economy-boosting
Job he wants done. 1t might
only increase the deficit with
out any compensating benefit,
this argument runs.
Budget Cut Advocates
Immediate cuts ranging from
So billion to more than $40
billion were advocated by such
diverse groups as the AFL-CIO,
National Association Of Manu-
facturers, the business-financed
Committee for Economic De-
velopment, the Democratic ma
jority and Republican minority
of the Joint Senate-House Eco
nomic Committeeman by Gov.
Rockefeller Of New York. a
prospect for the 1864 Republic
can presidential nomination.
Mr.. Kennedy proposed an
ultimate net tax cut of $10.2
billion a year, but he would
reach this level in three stages.
1.-THE indications are that
business conditions will be bet
ter than anticipated, even
without the stimulus Of a tax
cut" Mr.. Boggs said in an in
terview. II think there should
be a greater cut the first year
than was recommended and
that we should put 1t into effect
as quickly as possible-that
could be by the last quarter Of
1853"
He said the cut might ap-
proach IS billion although
that might be q little high"
Any sign of improvement that
would reduce the deficit, Mr..
Boggs said. should be reflected
in a tax drop larger than the
Administrators So billion.
Mr.. Boggs said he does not
fear an early recession If no
tax cut is voted, but that a
reduction Of tax rates is needed
TO spur the economy and insure
satisfactory future growth.
Republican advocates of tax
reduction have called for re-
duced spending, but for the
most part have indicated they
would accept temporarily larg-
er deficits in return for the
stimulus expected from tax re-
duction.
Any considerable increase OF
next years deficit over the
$11.9 billion forecast would de-
prive Democratic campaigners
of q handy retort to Republican
charges Of irresponsible spend
ing: the biggest peacetime
deficit in history was regis
tered under the Republican
administration of President
Eisenhower-$12.4 billion in the
year beginning July 1. 1858.
Mr.. Boggs commended, how
ever, that "the whole Republic
can so-called economy position
has been badly battered-first
by Gov. Rockefeller's statement.
and then by the vote on the
military bill"
More Than Kennedy Asked
The vote pattern on the
$15.8-billion measure for air.
craft, missiles and ships was
mixed. The majority of Re-
publicans voted for an increase
of almost 1884 million over
Kennedy recommendations for
the RS70 aircraft, which car
ried. Then most Of them voted
for an across-the-board cut of
more than $500 million in the