g P THUHBDAY, JANUARY 3, 1S83 ' MEPFORP MAIL TRIBUNE, MEPfORP, OREGON - - ' .:
Kennedy VJill VJage All-Out Congressional Battle for Tax Reduction
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Editor's notet Ai President
Kennedy tumyi hli lint two
yeari In the Whit Home end
lopki at proipecii for 1883 in
gravely troubled world, hii
viewi are reported on th
highost authority in th. lot
lowing article.
By MERRIMAN SMITH
Uri Whit Homo Reporter
Palm Beach, Fla.-OOT-Presi.
dent Kennedy at the dawn of
1963 believes it will be pos
sible to Keep the country
relatively prosperous and
avoid a growth-stunting rise
in unemployment. For this
reason and beginning this
month, he intends to wage an
all-out fight in Congress for
tax reduction effective this
year.
The tax cut he envisions
would not go into effect all
at once. It would be phased to
take effect at different times
in order to lessen its impact
on the budget deficit.
Before Treasury Secretary
Douglas union puts the de
tailed administration, one'
package tax reform bill be
fore the House Ways and
Means Committee late this!
month, the President and his
lieutenants face a first fight
over whether to keep the
House Rules Committee at 15
members or allow it to revert
to 12 members. Without' a 15
member Rules Committee,
Kennedy fears the next two
years will be virtually barren
of legislative accomplishment
and his program largely
unadopted.
Domestically, and economi
cally, the President feels the
nation is slightly better off
than a year ago. But without
the tax reduction, he fears un
employment will rise danger
ously. For this reason, once
the Rules Committee fight is
out of the way, the tax bill
will have first priority on his
list of needed legislation.
International Field
In the international field,
the chief executive thinks
Russia may have learned a
lesson from the Cuban missile
venture and thus helped to
improve slightly chances for
keeping the world at peace In
1983.
While this country has no
Intention of invading Cuba,
the President has made it
clear that absence of Ameri
can action is contingent on
Cuba living at peace with her
neighbors. He believes in
lime that Premier Fidel Cas
tro will be toppled, but he
does not know how or when
this change will take place.
He wants it understood, how
ever, that the United States
would be sympathetic toward
a shift to new and free gov
ernment in Cuba. " '
Generally, the President
takes a guarded attitude to
ward the continuing East
West struggle in 1963. He
finds the military balance of
power still on the side of the
West. The United States in
his opinion also has an edge
in nuclear weapons. And de
spite stray hits to the con
trary, he finds no currently
dependable evidence that
Russia wants to deliberately
better relations with the
West.
Domestic and foreign pros
pects taken together, the
President sees 1063 as a year
of increased peril for the
United Slates, but an era of
more opportunities for ad
vancement. It is possible to
report this and other Ken
nedy attitudes at the new
year as the result of conver
sations here in Palm Beach
where he spent a mixed rest-
end-work holiday. His associ
ates responsible for this re
port are clearly authoritative.
The President anticipates
no less a laborious and trou
blesome year with Congress
than he experienced in 1962.
Ranked a shade behind tax
reduction, medical care for
the aged financed through so
cial security and federal aid
to education will be pushed
again by the administration.
The President is determined
to get a decision on Medicare
in 1963 but he realizes this
will be a difficult task
Economic Outlook
Economically, he thinks
business is reasonably good
and for' this i reason, 1963 is
a better time to put across a
tax cut than waiting until
unemployment rolls the na
tion into another recession.
He regards his relations with
the business '. community as
more satisfactory than they
were six months ago, but he
also attributes this in part to
business, itself,; being more
satisfactory than it was last
June.
He foresees 1963 trouble In
the labor-management field
with hard-to-settle strikes
arising from automation,
work rules and technological
changes, particularly when
such changes result in aboli
tion of jobs.
The last unemployment fig
ures showed about 3.8 per
cent of the work force out of
jobs. Kennedy believes that
even with inroads caused by
automation and the addition
of one million people a year
to the work force, unemploy
ment can be kept from in
creasing if Congress passes
his new tax program. With a
tax reduction phased as the
administration will propose,
Kennedy would expect to
keep unemployment below 6
per : cent. Without the tax
bill, there would be some
growth in the production
rate, but also a growth in un
employment probably higher
than 6 per cent.
Second Term Inevitable
Politically, the President
regards his second term can
didacy as more or less in
evitable; he feels he is in good
political shape now, but he
expects a decline in popular-
Polaris Submarine
Joins Fleet Friday
Washington -IUPD- The Navy
announced today the Polaris
missile submarine Thomas
Jefferson will officially join
the fleet at Newport News,
Va., Friday.
The Thomas Jefferson Is the
fifth U.S. submarine equipped
to fire either the Polaris A2,
which has a range of 1,725
land miles, or the A3, which
will have a range of 2,875
statute miles when it becomes
operational in mid-1964.
Kenned Limits
Foreign Visitors
Washington tUPTi So many
foreign dignitaries are visit
ing Washington that President
Kennedy has limited them to
two days In the capital dur
ing 1963.
The State Department said
Wednesday the two-day limit
on the Washington portion of
foreign statesmen's official
visits was set to make sure
Kennedy would be able to
work them into his schedule.
Malta, British base In ihe
Mediterranean, is about 95
square miles in area.
f;
V
ity of his administration aa
measured by opinion polls
when Congress re-opet
fighting over domestic
begins. According to associ
ates, he does not have a 1964
Republican opponent in mind,
but expects the race to be
hard-fought in the manner of
former President Harry S.
Truman's reelection battle of
1948. The President looks at
the 1962 congressional and
gubernatorial election results
and finds the country politi
cally is very closely divided.
He foresees no changes in
his cabinet although he ac
cepts the fact that after two
years in office, some of his
cabinet members may want
to return to private business
in the foreseeable future. This
does not apply to Secretary of
State Dean Rusk. There is no
doubt in Kennedy's mind that
Rusk will stay in his post.
As for reports that Post
master General Edward Day
may be thinking of leaving
the administration, Kennedy's
position is that he has no
knowledge of it. He feels it is
possible that some of his ad
ministration associates may
want to depart, but he knows
of no definite plans at this
point.
The domestic fate of the na
tion, in the Kennedy frame of
reference, is bound tightly to
the international situation.
While Communist expanion
lsm may have been blunted
momentarily by the recent So
viet experience in Cuba, the
President feels the West must
not let down its guard. He
feels Western Europe should
play a much larger role in
assisting the have-not nations
and not leave the burden pri
marily to the United States.
He has the same attitude to
ward prosperous Japan.
Psychological Boost
In his opinion. Soviet Pre
mier Nikita S. Khrushchev
would have scored a resound
ing victory had his strategy of
placing Soviet medium-range
ballistic missiles In Cuba been
successful. This would have
given Russia a psychological
boost with the rest of the
world as great as that gained
from Sputnik I In the last
decade.
K h r ushchev, however,
learned in Cuba the United
Slates would risk war when
necessary and, In the Presi
dent's opinion, the Soviet
leader will now move with
greater caution than he dis
played in going into Cuba.
Kennedy is deeply concern
ed about conditions in Latin
America. He plans to ask Con
gress for Increased funds for
the Alliance for Progress, but
the boost over last year's fig
ures will not be substantial
because aid to South America
produces a net drain on bal
ance of payments. He regards
Latin American relations as
so important that he plans to
travel extensively in the area
In 1963 and the next year,
top.
There Is a possibility he
will meet this year with
French President Charles de
Gaulle who has a political
problem in rationalizing his
firm program for Independent
nuclear deterrent power with
U.S. and British efforts to
form a multilateral force with
France within Hie North At
lantic Treaty Organization.
Unrest Creates Problems
Kennedy docs not want to
see the western alliance begin
to fragment into individual
deterrents with inevitable and
weakening imbalances. While
the United States may have
Ihe edge over Russia in nu
clear weapons, the President
feels the means of delivery
has become more important
than kiloton capacity of a
warhead. This country has no
more atmospheric tests sched
uled at present and will con
tinue to press for a test ban,
but pending a workable
agreement some underground
testing will continue.
He sees added problems in
1983 because of unrest and
great need in South America
and Asia. He is confident Red
China eventually will explode
a nuclear test bomb, but he
does not forecast Ihe time, ac
cording to associates. When
Red China docs test success
fully, he believes (his will add
to Sino-Sovlet friction. This
could end up as a plus for the
West if Russia then shifts to
ward her more historical
identification with Western
Europe. There are no signs
of such a shift at present, but
the President feels It may be
a possibility over the interna
tional horizon.
His mood shortly before
the new Congress convenes
can be described as one of de
termination, admittedly more
realistic than optimistic and
quite rejective toward the
philosophy that big govern
ment is dulling private initia
tive. Because of the time-hon
ored seniority system in Con
gress, he feels he must pro
ceed with caution in advo
cating any modernization of
congressional procedure that
might cut across the feeling
of independence, in the legis
lative branch. This, however,
does not rule out his fight
concerning makeup of the
House Rules committee.
Sees Tough Tax Sledding
If the Rules Comnuttee Is
kept at 15 members as the
administration desires (Chair
man Howard Smith of Vir
ginia would like to see it re
vert to 12), Kennedy then sees
an opportunity to bring even
controversial legislation to
the floor for a vote. To keep
vital bills off the House floor
would be bad public policy,
in his opinion.
Furthermore, Kennedy feels
it would be a terrific re
sponsibility for Republicans,
as well as for a good many
Democrats to put the power
ful Rules Committee in con
trol of those usually opposed
to almost any action the
Kennedy leadership would
want to undertake.
Even with a favorable out
come in the Rules Committee
fight, the President expects
tough sledding for his tax
proposals. Such Important
voices of labor and manage
ment as the AFL-CIO and
U.S. Chamber of Commerce
are for the tax cut, but the
President also Is aware of
some rather important people
in opposition.
He sees no point in putting
the country through the
wringer of a recession before
adjusting tax rates downward,
A recession, he coniinues to
remind his friends, would
cause the worst possible sort
of federal deficit.
He plans another move
against high federal farm
subsidies which add annually
to surplus stocks, particularly
in wheat and dairy products.
He is Impressed rather nega-
WEDDING PLANNED Rick Nelson, 22, Idol of millions of
1een-aers, and Kristin Harmen, 18, daughter of sporlscaster
Tom Harmon and actress Elyse Knox, will be married some
time in the spring. Nelson il the (on of TV'l Ottle and Har
riet Nelson. (UPI)
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JANUARY 6TH
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PERSONALITY PROFILE:
An Intimate Portroil of Carl
Sandburg on hii 85th Birthday
HUMAN INTEREST:
How Ihe Lou of a Child Turned
Into a One-Woman Safely
Crusade
INSIDE SPORTS:
Big 10 Commissioner Tells 8
Ways to End Basketball Fixes
STORIES AND FEATURES
FOR EVERYONE IN
Weekly
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tively by the fact that because
of large dairy surplus stocks,
the average person on relief
is getting twice as much but
ter as those not on relief.
In looking around the
economy, Kennedy sees un
employment and its paradoxi
cal aspects as constituting one
of the nation's larger diffi
culties. Even with unemploy
ment at 9.8 million in Novem
ber, Kennedy finds it highly
interesting that the stock
market was rising and the
general economic state of the
nation was ralher hopeful.
He feels that 1963 may be a
pretty good year, but the un
employment problem will re
main with the country be
cause of automation and tech
nological advance, plus a dis
turbingly high rate of school
drop-outs - a situation that
might be helped extensively
by the youth opportunity bill.
Mindful of Suggestions
The President is mindful
of suggestions from some
quarters that he may have
been too cooperative with
Congress for the good of his
program and that more of a
stiff attitude by the White
House might be in order. He
counters such arguments, ac
cording to friends, by point
ing out simply that the Con
gress is Democratic - not like
the Republican - controlled
80th Congress which Truman
fought vigorously and to his
own benefit.
He also realizes that some
members of the House and
Senate can block his programs
with no real reprisal. Friends
report that he cites an ex
ample of House Rules Chair
man Smith carrying his own
district by a much larger
margin than the President
ever could manage. There
fore, there is nothing. he could
do to Smith, nor does Ken
nedy see any form of his dis
approval ol the Kuies cnair
man that would not rebound
to the chairman's benefit in
his own congressional district.
Kennedy cautions his asso
ciates not to write off a given
Democrat in Congress simply
because he opposes one piece
of administration legislation.
He has pointed to such power
ful leaders as Chairman Wil
bur Mills of House Ways and
Means and Sen. Robert S.
Kerr of Oklahoma as Demo
crats who opposed him on
Medicare in 1962, but backed
him solidly on foreign trade,
the 1962 tax bill and debt limi
tation.
The President currently is
keeping his own counsel as to
whether he asks for new civil
rights legislation this year,
but he does feel that the ra
cial problem in America is
national rather than concen
trated entirely in one geo
graphis division. He regards
the national aspects of the
racial problem as demon
strated in statistics showmg a
greater number of Negroes
among the unemployed,
school drop-outs and non-owners
of housing.
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