Reagan pins prestige on billion dollar bill

Press, 20 August 1982, Page 6

Reagan pins prestige on billion dollar bill

NZPA-Reuter Washington Congressional leaders are cautiously hopeful that they can win approval for a SUS9B.3 billion tax bill sought by President Ronald Reagan in the face of stiff opposition. The result is expected to be close when the House of Representatives voters today. Many conservative members of the President’s own Republican Party are among its opponents. Eighteen congressmen filed a court suit yesterday challenging the legality of the bill on which Mr Reagan has pinned his prestige.

If it clears the House, it could go to the Senate. Mr Reagan said that the three-year measure was essential to cut federal deficits which could reach SUS23I

billion bv 1985, and reverse the recent drop in interest rates. The conservative case is that the bill is contrary to the tax-cutting promises on which the President was elected, and they have called it the largest tax increase in United States history. But Dan Rostenkowski, a House committee chairman, said that he thought the bill would be passed. “This bill will not abort the economic recovery but will assist it,” he said.

Supporters of the bill have seized on the surge in Wall Street share prices which has occurred since Mr Reagan made a television appeal for its approval. Delbert Latta (Dem., Ohio) said that “if you want to see

it (the market) react in the other way, then vote down the legislation.” Leon Panetta (Dem., California) said that if he were to wager, "I would bet that it goes (passes).” Th'e House is composed of 243 Democrats and 192 Republicans. Money for the production of nerve gas shells was cut from a SUSI7B billion defence bill passed by the House. Opponents of the shells said that they would complicate arms control talks with the Soviet Union. The defence budget, already passed by the Senate, included most of Mr Reagan's other main requests. It included SUS3.S billion for the MX intercontinental missile system.