European Stars And Stripes (Newspaper) - March 28, 1987, Darmstadt, Hesse                                Paga 4 the stars and stripes saturday. March 28,1987 Gramm denounces demo plans to fight deficit with tax hikes Washington a an  Grameni Rudmann budget Law Friday blasted democratic plans for using tax increases to meet the statute s do Fin reduction targets. "1 for one do not accept that tact there is More Oil in he family budget than there is in the Federal budget said sen. Phil Gramm a Texas. Gramm said however that he d be satisfied if Congress met the fiscal 1988 target of $108 billion using Reagan administration estimates which arc less stringent than those of the congressional Budge office and would allow about $27 Bill Ion More . Ernest f. Hollings , the democratic co sponsor of the Law Dis agreed with Gramm on both counts. He said it would be backing off to use anything but co estimates and reach ing thai target can t be done of course except with revenues.1 president Reagan and Capitol Hill re publicans Hare been Pum Mcling the budget proposals from democratic budget writers especially Recalt for la  democrats say they re outdoing re publicans on reducing the deficit and trying 10 meet the targets of the Gramm Rudman Law. Senate budget committee chairman Lawton Chiles dra. Proposed thursday a $ i trillion plan for fiscal 1988 that would reduce the deficit by $37 billion with the help of As much As si8.5 billion in lax  democrats completed their closed door talks and prepared to release next week a plan with about the same amount of deficit reduction and new taxes. Rep. Trent loll of Mississippi the Sec Ond ranking Republican in the House scoffed at the offerings. The democrats yes they want to raise taxes. They want to get together with the republicans and get us id agree to raise taxes Cut defense and raise Domestic spending. That s what they want he said. That s what they Call a  the gop took no blame for the proposals since the parly has refused to Partick site in drafting them. Once the democrats id a plan on the table they said some negotiations i jilt be possible. Bui Reagan thursday said any talks with him won t include discussions of a tax  mouse spokesman Martin Fitz water said the administration might still refuse to hold the budget Summit demo cratic leaders have been seeking. Democrats emphasized thai their spending plans went further to reduce to the deficit than the budget Reagan sent Congress in Jan uary even when using the administration s own eco nomic and technical assumptions. Chiles said under stringent congressional Bud get office figures his proposal would reduce the deficit to $134 billion a billion dollars below the red Ink left by Reagan s plan. However. Chiles plan would still be $26 billion above the fiscal 1988 deficit target of the Gramm Rudman Law. Reagan claimed his plan reached the si08 billion limit. Chile said his did also when using the administration s calculations for economic growth and other technical assumptions Tor predict ing budget  addition Chiles said under either set of assumptions his plan would reach Gramm rude Nan s ultimate goal of balanced budget in fiscal 1991 which Reagan s budget fails to do even under his own system. While the subject of great debate the annual budget is actually an internal con Gressional document that does t require Reagan s approval. It serves As a guide for future tax and spending Bills thai must go to the president s desk Chiles did not propose specific tax in creases but has indicated increased Gaso line imported Oil liquor and cigarette levies Are pm the Able. The tax portion of the$18.5 billion in revenues in his plan could be reduced $7 billion if Congress allows Early repayment by holders of Rural electrification administration Loans. Both the House and Senate plans would sharply restrain military spending not even allowing a full inflation increase Reagan asked thai the Pentagon budget be increased 3 percent above inflation. Not cowed by the weather a Herd of cattle wends its my inward Var okla. The unseasonable Walher food across Snow cooled Field Fol left much of the Oklahoma Panhandle lowing in Early Spring storm new be under As much As 6 inches of Snow. Reagan surprised at confusion Over question Washington a president Reagan Friday said he was shocked and surprised that anyone questioned whether he actually had been asked about Iran during a meeting with a mis Souri sixth Grade civics class. I m worried that i seem to be the Only one that interpreted the question correctly Reagan told reporters in the Oval office after he vetoed an $87.5 Bil lion Highway Bill. In answer 10 a question from 11-year old Heather Watson on thursday the president offered a history of his once secret dealings with Iran and compared the Sale of weapons to Iran to paving Ransom to a kidnapper. I am convinced in my mind that she asked specifically about the trouble and was the cause Worth it and i answered in that Way. I was shocked and surprised that the others of you thought that she was just asking generally about the whole subject said Reagan. If i m wrong i was wrong but i be Lieve i answered the question. As a mat Ter of fact i heard the word Iran " he said. The question was All this publicity and the press and stuff they like to drive me out of my mind t just wonder what is in that made it worthwhile to Yout after the president left Heather said she thought the president had done a Good Job of explaining the reasoning be Hind the Deal. He told us he was just trying to be Friendly and make peace with , she said he never did answer my question. I m just 11 1 Don t know much about politics she said. I know that he or someone in his office traded arms for hostages. 1 know that was something he always said he would t do. I guess that s not right but then i think it s Good that he cares about those people an their families masked raid on Gay bar leads to aids class Washington