European Stars And Stripes (Newspaper) - January 21, 1989, Darmstadt, Hesse                                Saturday january 21,1989 the stars and stripes Page 5 Bush s budget chief Calls tax hikes last resort Washington a Richard Darman George Bush s designated Bud get director told Congress thursday he would recommend a tax increase Only if the nation faced a crisis so severe that there was no alternative. Darman at his confirmation hearing sought to fend off democrats probing whether Bush might circumvent his presidential Campaign pledge to seek no new taxes perhaps by using a different name for Revenue raisers. I think the president meant no new taxes As it would ordinarily be under stood by Ordinary americans Darman told the Senate governmental affairs committee. I think the Burden of that is the Duck test if it looks like a Duck it s a  but Darman who said he strongly believes that Bush accepts the Duck test conceded under questioning by sen. Carl Levin d-mich., that there was an exception to the Rule. Asked by Levin if such exceptions would include a deficit that threatens our economic health Darman said it would Only if there was no other Way to address the problem. But he added i am not now recommending in any Way to the incoming president that he violate the Duck test and i do not now foresee the circumstances in which i should or would do  Darman said that in deciding whether to recommend new taxes he would also consider the effect such a Choice would have on the president s credibility which he said is extremely  so i would not use exclusively the deficit As a test he said. Darman was one of three Bush Nomi nees to go before Congress this week. Senate panels on thursday recommended confirmation of two others Secretary of state designate James a. Baker Iii and labor Secretary designate Eliza Beth Dole. During a break in his hearing Darman told reporters he meant his testimony to give the impression that he was closing the door to any new taxes. He said he believed that new taxes would Only be acceptable in time of War a comment that seemed to Contra dict his earlier statements that a severe economic crisis might also trigger new taxes. Darman told the senators that his definition of taxes would include new levies on gasoline and employee provided fringe benefits As Well As moves such As putting state and local govern ment workers in a medicare payroll deduction program and eliminating the deduction for interest paid on Home mortgages. But he also stated that most people would not consider the renewal of a tax otherwise due to expire As a new tax. He cited the 3-percent excise tax on local and Long distance Telephone service which is scheduled to expire at the end of next year but is considered a Likely candidate for renewal. And he said he would not consider a new tax to be one that Bush has Ever proposed before or even been associated with  Darman also said he was not sure How Long Bush s pledge against new taxes might last but added we might As Well assume  with the government s $155 billion deficit looming As one of this year s major political Battles Darman came under questioning from lawmakers about the shape of next year s spend ing plan. Democrats have been trying to pres sure Bush into submitting a detailed budget showing How he would address Richard Darman budget director nominee is sworn in at his confirmation hearing. Improvements to education Environ mental and other programs he prom ised during the Campaign yet reduce the deficit without raising taxes. They believe such a spending plan must in clude new revenues or spending cuts that would be unbearably severe. Darman said he expected Bush to submit revisions to president Reagan s $1.15 trillion fiscal 1990 budget by mid february. He also said the Bush administration wants to reach a negotiated Bud get that would satisfy Congress and the White House. He sought to play Down earlier reports that the new administration would rather face the automatic spending cuts required by the Gramm Rudman deficit reduction Law than raise taxes. Rockwell pleads guilty to Billing air Force twice los Angeles a Rockwell International corp. Pleaded guilty thursday to double Billing the air Force on a satellite contract but said it should t be prosecuted because it reported the fraud voluntarily. The company entered a conditional guilty plea in . District court to one count of conspiracy and one count of contempt of court stemming from about $450,000 in overcharges in 1983. The conditional plea Means if Rockwell successfully appeals an earlier ruling in the Case its plea will be dropped. . Attorney Robert Bonner said his office would seek a Fine of More than $1 million. Rockwell the Al Segundo  company that made the b-1b bomber and space shuttle among other government and private projects originally was charged with seven counts of conspiracy mail fraud and contempt. The company was accused of overcharging the air Force for work on one of a series of Nav Star global positioning satellites used by military and civilian navigators. The. Government alleged Rockwell s satellite systems division in Seal Beach calif., billed the air Force for the same work under two contracts. The contempt charge stems from an earlier Case Rockwell promised to refrain from fraudulent Billing in a civil settlement that ended an earlier investigation of alleged false Billing. The conspiracy count carries a maximum Fine of $500,000. The judge has unlimited authority to impose fines for contempt. Sentencing was set for feb. 24. Rockwell s attorney James Neal repeated the com Pany s Contention that the double Billing was planned by employees without the knowledge or consent of upper level executives. The company said it discovered the fraud and re ported it to the Pentagon under procedures established for such cases and therefore should not have been charged in the first place. We informed the government of the conduct. We fired the employees Neal said adding that the com Pany offered to repay any overcharges. A defense motion to dismiss the indictment on those grounds was rejected by . District judge Consuelo Marshall. The company plans to Appeal that ruling Neal said. Bonner rejected Rockwell s Contention that it was absolved of guilt by reporting the double Billing to the government. Rockwell s disclosure to the defense contracting Agency came 10 months after an air Force audit uncovered Billing irregularities Bonner said outside of court. A Rockwell manager Robert Zavodnik 47, has pleaded guilty to lying to the government and conspiracy and is awaiting sentencing. His supervisor Donald Carter 60, was acquitted of the same charges by a Federal jury. Marcos hearing interrupted with report of lung collapse new York a a hearing on whether Ferdinand Marcos is too sick to stand trial on racketeering charges was interrupted thursday with word that the deposed philippine president had suffered a collapsed left lung. In Honolulu Marcos was in guarded condition but apparently was out of Dan Ger said or. Calvin Wong. Prosecutors in new York were Cross examining a doctor who had testified that Marcos was a dying Man too ill to be brought to trial when a Fri agent entered with a note on the 71-year-old former presi  conferring with lawyers in his Chambers . District judge John Kee Nan announced that Marcos left lung collapsed that morning and that he was returned to the intensive care unit at St. Francis medical Center in Honolulu where he has been since sunday with pneumonia and bronchial asthma. Keenan said doctors had been Able to re inflate Marcos lung and added i also understand there was an additional car biological  he s doing much better now Wong said. Asked if Marcos was out of danger the doctor said i think so. If he weren to i d still be in  Wong said he could t say How Long Marcos would remain in intensive care. Marcos wife Imelda was at his bedside Hospital officials said. Keenan is to determine if Marcos is fit to stand trial on charges he stole $ 103 million from his country. In the stars and stripes 40 years ago today. Jan. 21, 1949 delegates from Britain France Belgium the Netherlands and Luxembourg announced they had failed to draft a plan for an european Union because of disagreements Over How much Power the organization should have. 30 years ago today. Jan. 21, 1959 in a move to halt racketeering in the teamsters Union sen. John f. Kennedy . Unveiled a labor management control Bill that would require Public financial accounting by unions. 20 years ago today. Jan. 21, 1969 Richard m. Nixon took the oath As the nation s 37th president and dedicated his administration to the cause of peace among  10 years ago today. Jan. 21, 1979 As part of the 1976 agreement permitting . Bases to remain in Spain . Officials travelled to Madrid to Brief Spanish defense ministry officials on the Structure and role of nato