The Montana Standard from Butte, Montana • 4

4 The Montana Standard, Butte, Wednesday, January 7, 1981 GOP having second thoughts DONALD BERRYMAN 9 uUithw BERT GASKIU Edilw JEFFREY B. GIBSON Editorial Pag Editor BY JAMES HILDRETH WASHINGTON Republican policymakers are leaning toward postponement of some of President-elect Reagan's key economic campaign promises, including the 10 percent tax cut and a balanced federal budget. The reason? A growing fiscal 1981 budget deficit fueled by record interest rates, inflation and general stagnation throughout the economy. Thejocoming administration realizes that Congress despite greater GOP influence is unlikely to approve a 10 percent tax reduction now unless it is accompanied, virtually on a dollar-for-dollar basis, by a host of painful spending cuts. With Inauguration Day fast approaching, Reagan's economic brain trust has made little significant headway in forging the economic package that will be sent to the new 97th Congress, according to congressional and GOP transition sources.

Although the incoming administration hopes to unveil the plan in early February, there is no clear consensus on which federal programs should be pared or eliminated, the sources say. The. Senate Budget Committee has gathered a lengthy list of specific budget cuts that could save up to $29.5 billion in fiscal year 1981. which ends Sept. 30.

But the panel chairman. Sen. Pete Domenici, says that so far, Congress and Reagan's principal aides haven't settled on any "precise, specific approach" for making the reductions. ANOTHER PROBLEM that has delayed the economic decision-making is Reagan's not having selected a chairman of his Council of Economic Advisers. Thus, the incoming administration has no firm economic predictions upon which to base its assessment of how much needs to be slashed from the budget.

Treasury Secretary-designate Donald Regan made clear during his confirmation hearing before the Senate Finance Committee Tuesday ttiat the Reagan administration is firmly committed to a three-year tax cut as outlined in the long-debated Kemp-Roth tax plan. President-elect Reagan is committed to this, and he intends to carry out that commitment" by. making it the "centerpiece" of his overall economic package, Regan said. However, the Kemp-Roth plan named after its authors Rep. Jack Kemp, and Sen.

William Roth, R-Del. specifically calls for 10 percent reductions in each of three years. Republican sources with access to discussions among Reagan's economic task force members say no tax cut figure has been settled upon, but that "it will certainly be less than 10 percent." Regan made no mention of a specific figure in the hearing, saying only that the proposed tax reduction would be "reasonable." Martin Anderson, appointed as Reagan's chief domestic policy adviser, also refrained from using the specific 10 percent figure during a recent interview, although he made it clear that there will be a tax reduction plan. Regan revealed Tuesday that Reagan's economic plan will contain tax cuts for business in the form of liberalized depreciation allowances that would have some type of retroactive date." Asked later if the tax relief for individuals 7 stop complaining, sent You 1 (VW. the 24billion dollar ransom, didrit I 'jit illiiiiti luiiiltiiil CHtmal Byttr Stive, Bo Fuodea in 1 8 '6" Off and Tax relief and tax reform were among the main campaign promises of last year's winning legislative candidates, so the many tax-related bills already introduced in the new.

Legislature should surprise no one. As the Associated Press put it. the Republican majorities in "both' houses, believe government should, run "smoother, faster and. above all. cheaper." Gov.

Ted Schwinden says he shares that belief, so it's probable that Democrat Schwinden and the Republican Legislature will do more compromising than fighting over tax proposals this year Most Montanans probably would appreciate that Among the tax bills are proposals to eliminate the 10 percent inoorhe. tax surcharge, eliminate the business inventory taxTTaise individual income tax exemptions. gVe all households a $50 tax credit. a-j5e awav w. ihe inheritance Asd.

voter-approved tax nwaszne will be goisg aic effect alibough Schwinden. an a sorbe charxes it The danger iss that taxpayers will get too little tax reL-ef. that they might get too much And while some taxpayers won't be happy-ucul they get -it all back. House Speaker Robert Marks of Clancy has warned his colleagues not to go overboard, leaving the state strapped for funds later. WHILE MANY bills would lower taxes, another would "encourage" prompt payment of property taxes by increasing the penalty for late payments to 12 percent from eight percent.

That makes sense. When interest rates are very high, some property owners can put their tax money temporarily into certificates of deposit and make money despite the penalty they pay for settling their taxes after the deadline. 1 i i among the- more controversial proposals this year. One bill would allow tnumc nf linirlar 1H fW, nnniilntmn to adopt almost any kind of local option tax they wish. The idea is to enable "tourist towns" to maintain adequate services to thousands of tourists who pay no property taxes.

Another local option bill, by Rep. Steve Waldron of Missoula, would permit counties to levy motelhotel room taxes to reduce local reliance on property taxes. The desire to sock it to someone else', instead of local taxpayers, is always strong. But there are dangers in imposing local option room taxes to ease property taxes in a given Waldron says even a 10 percent room tax won't discourage tourists from staying in a county, a Butte motel developer disagrees. Wayne Paffhausen, of the Copper Kirjg Inn southsoijJutte, says a room tax might not discoftarge people from staying in towns that, are unusually attractive to tourists.

But if it's just a matter of staying overnight in one town, like Butte, or another, like Missoula, Paffhausen believes tourists would "definitely" opt for the town without a room tax. A local option room tax, says Paffhausen, would even deter expense-account business trade. The companies who must pay for expense accounts, he would also be retroactive, Regan said that issue was "still under study." Regan startled listeners during the hearing by appearing to push back the year in which the new administration will attain a balanced budget. "If everything works well and if nothing else changes, we could see a balanced budget in the fourth year of Reagan's term," he said. Throughout the campaign, Reagan consistently promised voters that the budget could be brought into balance by fiscal 1983 by eliminating 'raud, waste, abuse and mismanagement" within the federal government.

Although the administration will be working "to balance the budget as quickly as possible," a realistic target is now fiscal twi, negan said luesaay. "I DON'T I 1KP in h. (,.,, Charles Grassley, R-Iowa, told Regan. "It sounds too much like business as usual. I think the people are expecting more from this administration." Regan painted a gloomy picture of the economy.

"Despite some evidences of strength, the short-term economic outlook is not bright," he testified. "Under current policies and expectations, interest rates, inflation rates and unemployment rates are all expected to remain at high levels throughout 1981." Regan said these prospects "are not causes for panic," and that he sees no need to declare an economic emergency a suggestion from a faction within the Reagan camp. "We must have a sense of urgency not' a sense of emergency," Regan said. lei ltM Nntnw everyone Monument may be drained to provide more standing space, if the pool water thaws. KNOWING A friendly congressman isn't going to help any press photographer, though.

For the first time, the free press stand won't be free. The construction cost for a photographers' stand at the Capitol will not be paid by Congress, but by those using it. The estimates last week were $900 per photographer. Those with periscopes, who can photograph around corners, may be able to rent less desirable spots on the stand for as little as $200. The best plan may be to stay home, drink the bubbly and watch the hoopla on television -portions of the concerts and the inaueuration-nieht balls.

The Darade this year will be "short and snappy" one hour flat anil geared to the television. Only 21 oandsacenarching, including three by special invitation the Dixon, 111., High School band, from Reagan's home town; the Strom Thurmond High School band from South Carolina, named after the Senate president pro-tern, and the Salem (N.H.) High School Marching Blue Devils Band. The Salem band, promised a place by candidate Reagan during last winter's New Hampshire presidential primary, was ruled unqualified by the parade committee. But then the president-elect intervened to keep his campaign promise. Four years ago, President Carter won many hearts by walking the mile-and-a-half parade route before watching the marchers from a solar-heated reviewing stand in front of the White House.

This year, spokesman Bill Hart says, "electricity and a fan will provide hot air" for the stand and the Reagans won't walk. (cl 1M N.Y. TUum by Briclcman with 2FF fc. T. ft II HI running indicated, are conscious of price differences in motey rooms as in everything else.

So. unless a traveler's business required him to be in Butte, his firm might ask him to stay in another town to avoid the room tax. What effect local option room taxes might have on the convention trade is anyone's guess. Paffhausen says he doesn't know of anv state with a local option room tax. Room taxes, he says, generally are imposed on a uniform, statewide basis.

Our- own feeling is that counties should be cautious about relying room taxes for property tax relief in view of soaring gasoline prices. Tourism has leveled off in Montana in recent years, largely, because of fuel prices. A stiff new federal gasoline tax, which some people are recommending, or new gasoline shortages, or another OPEC embargo, could severely reduce Montana tourism, and disappoint local governments that are counting on tourists to replace property taxes. REP. FRANCIS BARDANOUVE, D- Harlem.

will introduce a bill to revise the lobbyist disclosure act. A legislative researcher says extensive revision might be necessary, although the intent and substance of the initiative won't be changed. That's good. Already, the lobbyists in Helena nearly outnumber the legislators. Before long, they will.

The voters are entitled to know a little more about these lobbyists. Rep. Tom Conroy of Hardin will be trying to repeal the initiative forbidding disposal of certain radioactive mine wastes in Montana. Presumably, the legislators will jealously guard the income tax indexing initiative. That's a measure the legislature, and not just the people, want.

Sen? John Manley's switch to the Republican Party was no real surprise. Manley has long been more closely attuned to GOP ideals than to the -DemocratsrriVIanley and-the Democrats undoubtedly are more comfortable with the arrangement, and the Republicans, of course, are delighted to add to their majority. Of great interest to the Butte-Anaconda area are proposals to ease the state ambient air standards. Johnson of Missoula already has introduced a bill that would require legislative approval of state ambient air standards that are higher than federal standards. This would mean the state Board of Health would no longer have the final say on such standards.

Some environmentalists may oppose this bill as an attack on the state standards. Maybe it is. But the Board of Health is an appointed body, and we see nothing wrong with giving an elected, representative body the final say over what the board does. As long as the federal standards remain as 'minimum standards, the Legislature would be restrained in what it could do under Johnson's bill. Controversies will develop as the Legislature gets down to the nitty-gritty.

They always do. But for now the Legislature has gotten off to a predictable start, and a real opportunity exists for a constructive, businesslike session. Bern mjm? WAT ym TRANSITION TEAM IS ALPeAPpeFiOT-FlPm, THAT IT HAS 7WD IN1DA FUll-BLOm, mswFu. bureaucracy in its OWN RIGHT. AW GOVERNOR, MIL 7HAT5ITKR BE GETTING WW, BOYS.

THE TRANSniON THE GOVERNORS TEAM OFF THE DUE AT HIS BACKS OF THE PEOPLE? MEATUXXER. Inaugu ration not for BY JANE L. SEEGAL WASHINGTON Ronald Reagan's electorate may have crossed all economic lines but only the rich, the powerful and the lucky will celebrate his inaugural here. The swearing-in at the Capitol Jan. 20 will be paid for with a public funds, but the other events must be financed by the participants, donors or souvenir-buyers.

And despite the tough economic times, many events or souvenirs are very expensive. The social events are expected to raise funds to cover the support costs, says Robert K. Gray, co-chairman of the Presidential Inaugural Committee. The Inaugural Committee expects to spend between $4 million and $5 million for support work office staff and printing for the Washington celebrations, roughly comparable to four years ago, the committee says. It also plans to spend about $1.5 million for TV hookups to 105 "satellite" balls across the nation inauguration night.

The swearing-in and a presidential luncheon will cost the taxpayers about $460,000. Admission to the most desirable of the social events here, which run from Saturday through Tuesday, is by invitation only. For $500 each, Republican biggies will sup Sunday in the Kennedy Center and attend one of three ballet or classical music performances. The menu and decor are top secret, only to be revealed the night of the feast, but you can bet they won't eat rubber chicken. AN INAUGURAL EVE gala costs between $50 and $1,000 per celebrant, and each ticket-buyer is asked to advance the gala people $50 which will be refunded later.

The inaugural planners apparently are feeling the pinch. If you are among the select 40,000 invited to attend one of the eight black-tie Washington balls inaugural night, you must fork over $100 each. The exception, which enables you to dance for less, is the $25-a-head "Youth Gala" at the Mayflower Hotel. Souvenirs available for purchase include a limited-edition Deluxe Collector's Set of five medals for $1,475. An inaugural license plate, which the committee says may be substituted for some states' auto license plates through March 15, costs $25, or $35 if you want a five-letter "vanity plate" specially printed.

"Satellite" balls will be held across the nation. Some are formal, such as the $5 a person ball in Hastings, and the balls in Pittsburgh of Baltimore, according to coordinator Chuck Hagel. For the money, you'll have a closed-circuit view of the new president and first lady and three to four hours of "almost totally music," Hagel says. "Even if they cut to (a picture of) Reagan, there'll still be music" Closed-circuit coverage of the shindigs will be directed by Martin Pasetta, who has directed Hollywood's Academy Awards celebrations of past years, with five cameras at each ball and "everything live," Hagel says. Frank Sinatra selected the Washington events' entertainment.

For those seeking free inaugural events, the pickings are slim. There are some free concerts and museum exhibits, as. there were four years ago when the Carter administration arrived with a more common touch. The free activities are financed by funds remaining in trust from the Carter inauguration. The Smithsonian Institution will sponsor special inaugural exhibitions including a showing of a three-piece Adolfo suit Nancy Reagan wore at the 1980 Republican convention.

The Washington-area schools poster and essay contests, which conclude Jan. 16, also are free of charge. Because Congress is providing the funds, the 24,576 seats and 115,000 standing spaces for the swearing-in are free if you are an invited official or can get a ticket from your congressman. All the chairs are the plastic, folding variety, except four "overstuffed" models on the podium for the principals President Carter, Vice President Mondale and their successors. But the recommended dress, for those who want to be chic, could cost a $40 rental.

In a two-page memo, Sell. Mark O. Hatfield, chairman of the Joint Congressional Committee on Inaugural Ceremonies, suggests men dress in the same attire as the new president, with morning suit, including "semiformal oxford gray stroller jacket, four-in-hand gray striped tie and white shirt, plain or pleated with studs." Tom Decker, a staffer on Hatfield's committee, says the reflecting pool between the Capitol and the Washington the small society TWO King fm lu Svndicf. tnc 1 okay, aeve ear TIME FOP JUST ONB MORE DOONESBURY by Garry Trudeau 6QASAIN, THERE THEY GO MAIN, WWT.EV?.