European Stars And Stripes (Newspaper) - February 27, 1981, Darmstadt, Hesse                                Page 12 the stars and stripes february Tom Wicker tax Cut plan faces Stormy weather most surely including president arc Well aware that god must love the common since he made so Many of yet the huge tax reduction the president would phase in Over the next three years is heavily weighted toward the upper tax brackets a striking reversal of tax cutting the Reagan tax Cut would also give about 80 percent of the benefits to i Dividu and Only 20 percent to corporations there would be sharply liberalized depreciation write offs for businesses invest ing in new plants and Treasury Secretary Donald Regan has succinctly explained the reasons for this kind of tax reduction what were looking at Here for the first time is an income tax Cut designed to stimulate savings and in not but Many democrats and not a few re publicans who agree with that goal do not believe the Reagan plan will reach Henry Reuss of for called it a demand Side Cut in suppl Side clothing one contrary to its authors would increase hence this disagreement is the major reason reagans tax reduction proposals have received a chillier response on Ca Pitol Hill than his budget cutting plans another reversal of political backers of the presidents plan contend that High income persons tend to invest and save More than those of lesser Means in this a tax Cut aimed at increasing savings and investment should Benefit the individuals most Likely to use added income for those but opponents doubts were not eased when Regan conceded to the joint economic committee that this con Tention was More nearly a theory than Evi Dence of a recognized economic As these opponents proceed with what Are Likely to be extensive hearings on the Reagan tax they will also have an Opportunity to look into what might be called the theory behind the for the idea that the tax Cut ought to stimulate savings and investment now widely accepted rests on still another that profligate americans have stopped saving and investing and have become a spend Thrift nation consuming its own capital and living off its own in budget director stockmans a set of figures released by the depart ment of Commerce late last year Calls into question that theory behind the for one the department discovered that in its measurement of business invest it had not been sufficiently taking into account the modern tendency to lease Means have Toft rather than buy new equipment for Aneth it found that the standards it had been using in earlier investment surveys were too As a result of the necessary business investment in reported As nearly 10 percent higher than previously measured up from billion to by the new in vestment was percent higher on average in each of the last 10 years than had been and the proportion of Gross National product represented by investment was higher in 1980 than it was in 1960 or the revised report also found that High interest rates had caused Small investors to move heavily into Money Market funds and High yielding savings so per Sonal savings Are also greater than Stock Man and others have the revised Commerce department Fig ures do not necessarily refute the need for a tax Bill aimed at stimulating even More Sav Ings and but they provide an other reason for misgivings about the Rea Gan tax Bill and suggest that at is far from irresponsible for members of Congress particularly the democrats who still control the House to take plenty of time to an Alyze the presidents admittedly bold and innovative plan to reinvigorate the econ in the most impressive claim made for reagans proposals that they rep resent a virtually Complete break with the past argues less for hurried passage than for careful the president and his of would like to pull everything As neatly As possible into one requiring Only one vote that would greatly increase the political difficulties of opposing the presidents under any constructive opposition will not be easy for congressional democrats while Reagan is Riding his Early Crest of no doubt  be accused of trying to thwart the National will As expressed in the election no doubt impatient conservatives will say there clinging to outmoded Liberal but responsible particularly those of the have the obligation to scrutinize carefully and at length any thing billed As a Complete break or a new beginning and burdened with so Many Uncertain for the democrats to abdicate that responsibility would be the most dangerous politics of c times Donald Rothberg demos reject but not All favor cuts with the 1980 election returns fresh in their democratic politicians Are trying to avoid being labelled obstructionist while building a record of opposition to major portions of president reagans economic publicly and democrats Are saying they expect major portions of Rea Gans tax and budget cutting proposals to be because the american people want some action the mandate in the country is that growth of government be examined and said John chairman of the democratic at the same Many including Are convinced that reagans approach ultimately will that the tax cuts he wants will prove that the Burden of the budget cuts will fall Dis proportionately on the in a televised response Friday night to the opinions expressed in the columns and cartoons on this Page represent those of the authors and arc in no Way to be considered As representing the views of the stars and stripes or the United Stales reagans economic congressional democrats concentrated their fire on the proposal to Cut income tax rates 10 percent a year Over three i Hope we can help him Reform his tax said Lawton we will alter the tax package so it wont be said Jim d the House majority Wright and Gary d presented the democratic the key is whether you go along with a tax Cut and test a theory which Hast been said a congressional source involved in planning the strategy of the democratic at the same we cant be viewed As obstructionist we cant be viewed As de laying the said the who asked not to be who is leaving his party said Reagan has made the same mistake Jimmy Carter made Early in his administration he is asking Congress for too much at As a said Reagan will face a Broad coalition opposing his budget House speaker Thomas Oneill has pledged to give the new Republican president a six month political but the Massachusetts Democrat also was Quick to Label the presidents economic package Are there inequities you bet there Are he Oneill is at the forefront of those who believe the democrats will be at a Strong disadvantage in the 1982 congressional elections if Reagan is Able to Brand them As like most democrats who hold that be the speaker also feels pressure to re Spond to constituency groups which demand that the party restate its traditional commitment to a Strong governmental role in dealing with social at the same Hart and Many of his democratic colleagues Are calling for a re examination of Many of the programs traditionally supported by democrats since the new Harts thesis is that democrats must re Tain our fundamental principles and goals while at the same time reexamining the methods that Are used for achieving those what that Means is reducing our Reli Ance on bureaucratic and programmatic solutions to Domestic passing a creating an spending More