Letter from Washington

Old rule of political economy: that which goes up must go up

further. First the Administration said there would be “only” a $52-billion deficit in fiscal year 1976—if Congress raised some taxes that the Administration knew Congress would not raise, and if Congress made some spending cuts that Congress promptly refused to make. Then the Administration said the deficit would hit $70 billion. Now Treasury Secretary William Simon says the floor—the floor, not the ceiling— for the deficit will be $80 billion. And be said this before the Senate put together a tax cut proposal that would cut government revenues by $31 billion. The Senate tax bill is the most bizarre piece of special interest legislation, with a loophole for everyone, since the 1969 tax “reform” act which was passed in December 1969, and is remembered as the classic example of a “Christmas tree” bill—one decorated with a bauble for every group. The bill just passed is known as the “Easter basket” bill.

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Equal Rights Amendment

Old rule of political economy: that which goes up must go up

further. First the Administration said there would be “only” a $52-billion deficit in fiscal year 1976—if Congress raised some taxes that the Administration knew Congress would not raise, and if Congress made some spending cuts that Congress promptly refused to make. Then the Administration said the deficit would hit $70 billion. Now Treasury Secretary William Simon says the floor—the floor, not the ceiling— for the deficit will be $80 billion. And be said this before the Senate put together a tax cut proposal that would cut government revenues by $31 billion. The Senate tax bill is the most bizarre piece of special interest legislation, with a loophole for everyone, since the 1969 tax “reform” act which was passed in December 1969, and is remembered as the classic example of a “Christmas tree” bill—one decorated with a bauble for every group. The bill just passed is known as the “Easter basket” bill.