House passes Reagan Budget

Press, 9 May 1981, Page 8

House passes Reagan Budget

NZPA-Reuter Wa S hin gtOn President Ronald Reton\ plan to slash social programmes and taZ has passed its biggest hurdle the Budget was overwhelm, ingiy approved by the House of Representatives yesterday by a 253-176 margin. * The House approved Mr Reagan’s $688.8 billion Bud. get for 1982 which would redirect much of Government spending from domestic programmes to defence The victory was especially sweet for Mr Reagan because the House, unlike the Senate, is controlled by the opposition Democratic Party The Senate is expected to approve a Reagan-endorsed Budget next week. If some details are different from the House plan, a joint conference committee will work out the differences. It must be implemented in detail by congressional com. mittees for the 1982 financial year, which will start on October 1. The most controversial part of the proposal is Mr Regan’s three-year plan to cat income taxes by 10 pe r cent each year. Democrats said this would increase Government Budget deficits and push up interest rates and inflation. Mr Reagan says it would cool inflation and spark economic development. Although the Reagan plan in the House calls for a record $lBB.B billion in defence spending in 1982, it would slash social programmes enacted since the Great Depression of the 19305. It would cut about $4O billion from the former President Carter’s 1982 proposal before he left office.