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Kalispell Daily Inter Lake Newspaper Archives May 16 1990, Page 5

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Kalispell Daily Inter Lake (Newspaper) - May 16, 1990, Kalispell, Montana Leadership deficit think tank says Money shortfall in t the real problem the daily inter Lake Kalispell Montana wednesday May 16 1990 a-5 by Mike Feinsilber associated press writer Washington apr As White House deficit negotiations got under Way tuesday a Brookings institution report disputed president Bush a inaugural speech assertion that the nation has a More will than Wallet what slacking it said is not wealth but leadership. A the question is not whether America has enough Wallet but whether it has the will to use its abundant wealth to solve the problems that it faces a wrote Henry Aaron a senior economist with the Liberal research organization. The country has plenty of wealth the report said. A the United states is a nation blessed with the highest per capita income. Its National product is 2 1/2 times larger than that of the second largest Economy a the report said. A it is enjoying its longest peacetime facing no military threat or economic crisis the United states a can muddle through without absolute decline a Aaron said. A yet americans cannot escape the reality that decisions taken during this decade will determine whether the chronicle of growth at Home and influence abroad continues or flags a he said. The report a setting National priorities by nine Brookings researchers is intended to take a a a centrist stance toward problems on the budget foreign policy defense Trade global warming education health care and political paralysis. It was a coincidence that the Book size report came out the Day talks were opening Between Bush and congressional leaders on ways to take As much As $100 billion out of the projected deficit Bush who said on inauguration Day that the United states cannot solve All the world s problems because a we have More will than Wallet a has consistently opposed a tax increase to reduce the deficit but a tax increase could emerge from the budget talks even though both parties have shied away from advocating one. The talks Are expected to last for weeks and could drag on throughout the summer. Writing about the political impasse that has made deficit reduction difficult political scientist Thomas e. Mann said a the most striking and unsettling feature of american politics. Is the Stark contrast Between the extraordinary Pace and scope of change occurring outside the country and the political immobilise Mann said Bush was unlikely to adopt daring solutions to the nations economic problems and was almost sure to prefer to stick with a political strategy that barring a deep recession a is very Likely to Lead to his re election in 1992.�?� but Mann argued by accepting a a modest increase in taxes weighted toward those High income households that reaped most of the economic benefits of the 1980s,�?� the president could help the coun try and enhance his own re election prospects. Such a course he said would a eliminate the deficit lower interest rates increase investment fuel economic growth and not incidentally neutralize efforts by the democrats to mount a populist critique of the Gopy a these presidential initiatives could break the policy logjam help the country begin to Deal with its Long term challenges and put the Republican party in a position to increase its strength at All Levels of elective office a he said. He said however that it was doubtful that either party would adopt unconventional strategies to Deal with the nations problems. Aaron tabled the problem a a psychosis of poverty and he blamed it on a an extended consumption Binge arising from the country a refusal to save More and to Cut both personal and government spending or to tax itself enough to scale Down the deficit a depressed saving slows growth of worker productivity a he said. A it is conventional Wisdom that because of the deficit the United states cannot afford to solve serious problems of health care education and infrastructure. A in fact failure to attack these problems and the deficit simultaneously stems from a deeper common source american leaders have been unwilling or unable to try to persuade the people of the need to Cut spending to raise taxes democrats say Bush should Point the Way with budget plan by Alan Fram associated press writer Washington apr congressional democrats say they want president Bush to use the budget Summit to Tell them How to slash a Federal deficit the administration now says could approach $200 billion next year. Bush and other top administration officials met tuesday with 21 leading lawmakers of both parties in the first talks on the politically deadlocked 1991 Federal budget the talks began two weeks after Congress began moving toward approval of $1.2 trillion spending plans written by democrats. Those measures slash Bush a proposed Pentagon budget but Lack the deficit reduction the White House now says is needed. Bar gainers said that while tuesdays session went Well no specific approaches for attacking the shortfall were discussed including possible tax increases or spending cuts. A everything was generalities a said rep. Silvio Conte of Massachusetts ranking Republican on the House appropriations committee. Participants said the 100-minute meeting focused on the growing size of the budget Gap and the urgency of tackling the problem. A it is important to act while the Economy is still growing for growth is not As Strong or secure As it should be a Bush told the negotiators. Leery of being blamed for suggesting tax increases or spending cuts democrats insisted that Bush a who called for the Summit two weeks ago a must Lay out his own proposals first Senate majority Leader George j. Mitchell a Maine said some democratic negotiators had suggested a television speech by Bush to discuss the deficit White House press Secretary Marlin Fitzwater said Bush envisions no such speech. A we talk about the problems All the time a so a televised address on the budget is not needed Fitzwater said today. A we talk about the deficit everybody knows what the deficit House speaker Thomas s. Foley d-wash., said democrats told Bush that after bar gainers finish discussing technical issues a the next step in our judgment was to hear the administration s recommendations on How we approach the another negotiator Senate budget committee chairman James Sasser d-tenn., said he believes Bush wants democrats to first reveal their own deficit reduction ideas. A there was not an affirmative response from the president that head come Forward with proposals a Sasser said. Sasser also said that at tuesdays session White House budget chief Richard Darman offered new figures further swelling the expected size of the budget Gap for fiscal 1991, which starts oct i. According to Sasser Darman said next years deficit would Range Between $140 billion and $188 billion if the costs of rescuing the savings and loan Industry Are included. The shortfall would be about $138 billion if those expenses Are not counted. The new figures mean it would take $72 billion to $124 billion in some combination of higher taxes and spending cuts to stay within the Gramm Rudman deficit limit of $64 billion for next year. One possible outcome of the talks however is an agreement to raise next years deficit target thus requiring fewer cuts or new taxes. Darman has said he believes a Good goal for the negotiators is agreement on a $50 billion deficit reduction package. Don t miss Kalispell s largest indoor garage Sale sat. A Sun., May 19 a 20 a 8 . 5 . At Roy Stanley s service dept. Free tables to commission charge just Call Mark at 755-5581 to Reserve yours just for the Sale. Our parts dept. Will have full sire pickup bed liners installed. Folks have been calling Mark and reserving tables but there Are still lots left. This will be the Best Sale of the year to buy and sell for Only $229 some of the hems already coming a Blacksmith tools a baby clothes a housewares a crib a appliances a bikes a Lawnmower a washing machine a exercise Bike a cookbooks a electric fixtures a tools a tires pm Quality service parts kit to co#oa�z0 Roy Stanley Auto team Quality parts at competitive prices Ioco w. Idaho 75s-ss55 or to take other controversial in a proposal to convert the deficit into a modest surplus by 1995, economist Charles l. Schultze raised the possibility of cutting or taxing social Security benefits raising taxes by i percent of the National income cutting spending on such a Middle class subsidies As the farm program school lunches for Middle class children disability compensation to veterans with Low disability ratings and subsidies for merchant vessels he also raised the possibility of imposing user fees for grazing on Federal lands and raising interest rates for Rural electrification Loans. A that the nation can muddle through sustaining Large budget deficits without a cyclical crisis does not mean that deficits do no harm and can be ignored a Schultze wrote. A a successful Economy ought not Only to avoid recession and inflation but also to provide for future Leo w. Tracy is pleased to announce the formation of a Law partnership with Chas. C. Dearden under the firm name of Tracy amp Dearden attorneys at Law 327 Spokane Avenue Whitefish it 59937 406 862-2564 fax 406 862-9259 the firm will continue to engage in the general practice of Law and will concentrate also on Railroad Law Fela personal injury and general civil litigation save 10% save on boys sportswear on everything in our summer style Catalon starts May 13th and ends May 26th save on women a apparel every trek bicycle in the store is on Sale now. I a Iri s tutus. Is opes a Mno to m Imp i n. 91 00 log Mno smi. H in i. Tirl i nun. Voon to a it in 214 first Avenue West Kalispell 257-5808 930 Bui n Trie United states of get weight True temper Cro Mold. The 930 is proof that performance and value go hand in hand. Sporting a matrix wheel system and Sun tour s x-1 group. The 930 delivers the Thill of the single track ride Reg $499 00 Sale $439.00 850 a Bend of a go be Romance and affordability the 850 features a double butted Cro moly Frame and the Sun tour ice component group highlighted by the new a press 7-Speed Shin no system Reg $449 of Sale $389.00 can Amerl a ass18. 1�, 20

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