European Stars And Stripes (Newspaper) - April 20, 1987, Darmstadt, Hesse                                The stars and stripes monday april 20,1987must of tax hike experts say. " 2 former budget chiefs agree on need Washington a the two men who oversaw the last Federal budget la ran a surplus say president Reagan Musl accept a tax increase if he wants to lower the Gigantic deficits the government now faces. Their comments come us the Senate prepares to debate a trillion Dollar budget next week that contain ii8 billion in new taxes and in the Wake or House passage of a similar spending proposal in inc i969 fiscal year which ran from july i 1968, to june 30. 1969 inc government had a $3.2 billion surplus. Charles j. Zwick headed what was called inc Bureau of the budget for outgoing president Johnson for the first half of that fiscal year while Robert p. Mayo followed him in he Job under John son s successor. President Nixon. Both men left Washington nearly 20 years ago and they have been Bank executives since. They agree that to Cope with current budget deficits that arc As Large As total Federal spending was in 1969, the formula must read defense cuts Domestic program slashes and higher taxes i think once we be shaken out As much waste As we can and the Tat has been Cut out of the defense pro Gram and we be eliminated As much pork Barret As we can then we need to turn to revenues Mayo said Inan interview. They Are going to have to raise taxes when All is did and done Zwick said in a separate interview. Zwick and Mayo served As budget directors in what compared to today s fiscal realities was an Era of inno Cence. When Johnson proposed his 1970 budget in january 1969, he called Tor a then record $ 195 billion in spending and asked for authority to raise the nation temperatures Al debt from s3s8 billion to $365 billion. And three months later when Nixon announced proposed cuts of $4 billion from Johnson s spending plan Nixon said our actions now we believe have brought an end to the Era of the chronic budget Defi cit.". Mayo and Zwick said the 1969 surplus was largely due to the 10 percent income lax surcharge imposed in 1968 to help pay for the Vietnam War. That surcharge was reduced to 5 percent for the first half of 1970, and then eliminated. The by decl numbers the two men contended with were minis cute compared to the figures Loday s budget warriors face and neither of them suggested that the surcharge be revived. Reagan s blueprint for 1988, which begins oct. I contains is trillion in spending and the National debt has reached 12.2 trillion. At the same Lime annual Federal deficits have Hov ered Al around $200 billion since 1983. Even though the congressional budget plans would lower the deficit to the-$130 billion Range a major political Battle is being fought Between democratic congressional Lead ers who want More taxes and less defense spending and the White House which has promised repeatedly to oppose defense cuts and tax increases i applaud Reagan s determination to keep plug Ging to get spending Down and 10 keep taxes As Low As he can but i think i d suggest that sometime along the Tine he d have to Compromise on his absolute Condi Tion of no additional taxes and Compromise on his wishes on defense spending. Mayo said. Mayo 71, now a director of the Chicago Tokyo Bank in Chicago and of several Money Market funds said he believes the government could spend its Money More efficiently by reorganizing some Federal Domestic programs and eliminating Home District pork barrel projects that Are favourites  As for defense spending which Reagan has sought to increase to $312 billion or 3 percent above the rate of inflation Mayo Slid i think there is enough fat in defense so that they can operate without a further in crease. Zwick 60, was More critical of the inability of the while House and Congress to reach agreement on a Way to reduce the deficit what you need ii leadership and i Don t see any one providing that leadership he said now chairman of the Board of Southeast banking corp. Of Miami Zwick said hat in 1968, the budget impasse was broken after Congress and the president agreed to impose the tax surcharge reduce spending by so billion and shrink the size of the Federal work Force. There were a Bunch of things in there that nobody liked but everybody could say they got something Zwick said nobody liked it but everybody could vote for  Zwick said of the savings needed to reduce the Defi Cit one third should come from Domestic spending reductions one third from defense cuts and one third from tax increases. To accomplish those reductions and to Bear the political pain that goes with them Zwick said legislators like to have someone on whom to place blame. If the elected leaders won t Lead you need a Vil lain who la do it Zwick said that should be the budget  guerrillas enter Israel kill 2 before being shot news update t Uro Penn weather Fotou or Heron mow sous to Turin Tanum run in Venina  bump not  it Bihi Hon in lit Mot Huwui us cum Lor Medulla. Israel a palestinian guerrillas penetrated into Northern Israel sunday and killed two israeli soldiers before being shot by troops. The guerrillas intended to Lake civilian hostages when they infiltrated before Dawn near the isolated Menara Kibbutz where several Hundred people live on the israeli lebanese Border the military command said. The guerrillas belonged to Yasser Arafat s mainstream Fatah Branch of the Palestine liberation organization inc army said. They crossed electronic fences and Security ditches into an open Field about 12 Miles Southwest of the Border town of Medulla military sources said. Their tracks were spotted by israeli soldiers on guard who found the guerrillas hiding nearby the army said. In the ensuing gunfight the guerrillas were killed the army said. It declined to say How Many had infiltrated. In Southern Lebanon lebanese re porters said there had been three infiltrators. Soldiers searching the bodies of the guerrillas found knives grenades and missiles military sources said. Helicopter kept watch and roads to nearby Kiryati Shimona and neighbouring communal farms were blocked off for several hours As the Sreiy searched the area. News of the infiltration was held up by the israeli military censor for nine hours to allow the army to notify families of the slain soldiers. Their identities were not released. The attack in Northern Israel was the most serious incident of infiltration since april 7, 1980, when guerrillas entered the Border Kibbutz of mis Gav am and killed two israelis including a 214-year old child. On saturday israeli troops killed 18 iranian backed shiite moslem fighters in the most violent clash in Southern Leb anon since Israel withdrew its troops in june 1983. The weekend attacks came at the close of the week Png jewish passover Holiday which coincides with easter this year. Laxalt file release Washington a the Fri has to give lawyers for the Sac Ramento Bee files the newspaper has requested for its defense of a $250 million libel suit by former Nevada sen. Paul Laxdall. . District judge John Garret Penn has ordered that Fri files on people with alleged organized crime connections Musl be Given to lawyers in the libel Case but can not be released to the Public with out permission from the Federal judge in Nevada presiding Over therase. The files can be used by lawyers for both sides in the dispute. Laxalt a Nevada Republican sued the newspaper Over its 1983 stories on alleged organized crime lies of people associated with a Carson City nev., Casino in which Laxdall once had pan ownership. Motev a if mat Tumuli  tar f i i go is christians atheists clash if at easter rally in Denver 4s b Landau a41 47li m 41 14 Sussi tt41 to Pun. P bin melt. A 41 u Root. P or std a i a. Tot we Ftp so. T Ibon u 6648 67 a Rauw. Mum. 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