Udall emphasizes jobs, defense waste cutbacks By DON' McLEOU AP Political Writer WASHINGTON (AP) Democratic presidential candidate Morris K. Udall say-j the best way to fight inflation and balance the federal budget is to put people back to work with public jobs that could cost up to HO billion a year. The Arizona congressman says he can balance out the costs through the general boost that higher employment would give the economy, savings in welfare and other social services, tax law revisions and increased federal revenue. He says he would be willing to impose uage and price controls if the inflation rate got too high. He says he would work TUESDAY NIGHT SPECIAL! FILLET OF FISH Dinner Large fillet with choice of Potato, choice of Soup or Salad, Roll and Butler (Beverage extra). TUESDAY FROM $195 5P.M. TO 9P.M. I Just down the road, there's a place like home COUNTRY KITCHEN JUST A COUNTRY MILE WEST OF FERGUS FALLS ON HIGH WAY 210 — DIAL 739-2288 toward a goal of 3 per cent inflation and 3 per cent unem- phyment, less than half the current rates. The key to Udall's program, as outlined in an interview, is support of the Full Employment Bill sponsored by Sen. Hubert H. Humphrey, D-Minn., and Rep. Augustus Hawkins, D- Calif. The Humphrey-Hawkins bill is designed to create up to 5 million jobs in an 18-month period at an estimated cost of J 10,000 per job. Udall uses the figure of a possible 4 million public service jobs although he says he doubts that many will be needed. (There were 7.1 million Americans classified as unemployed in February, according to seasonally adjusted Labor Department figures.) The price tag for 4 million jobs would be $40 billion. But Udall says he could offset that with savings of 510 billion each from tax law revision, increased government income as the economy recovers, reduction in federal spending on welfare and unemployment compensation, and cuts in defense spending. Udall also relies on the estimate of congressional budget committees that each 1 per cent of unemployment costs the nation 516 billion in lost taxes and increased social service spending. The theory is that each 1 per cent reduction in unemployment will reduce the federal deficit by 516 billion. But, while unmployment has declined from 8.9 per cent to 7.5 per cent over the past 10 months, the deficit increased by $16.9 billion in the same period. Udall says, however, that the benefit from rising employment would apply in the context of a general economic recovery. "The fwtpral deficit isn't going to get worse. It's going to get better," he said. "The short term, month to month, might not get that exact precise re- MORRISL'DAU. suit, but we know what the overall relationships are." Here are some questions and answers from the interview: Q. You mentioned 510 billion from tax revision. Would you specify what lax changes you have in mind? A. I'm reasonably confident that you conk) get something in this range from a rather modest tax reform program. We have a whole bunch of lax preferences for corporations that favor the multinationals. There's this dollar-for-dollar tax deduction. The oil companies pay taxes to Saudi Arabia and they can take that off their American tax bill. That's clearly wrong. The old DISC (Domestic International Sales Corporation) program that rewards companies for going abroad and exporting American jobs. This ought to be abolished. On the individual lax, I've made a proposal to provide a municipal taxable bond to replace the tax-exempt bond, or we would pick up 40 per cent of the interest cost. And we think this would save n billion to 51.5 billion. We ought to tax capital gains at death ... ajid this is another 51 billion or so. The minimum tax ought to be tightened up, and this produces another 51 billion or something in that range... Q. You said 110 billion in reduced federal spending. Are you talking about the Pentagon? A. Yes, I was talking about defense spending. Q. Could you be more precise? A. Some of the places that savings would come from are foreign bases, and foreign troop assignments ought to be cut back. 1 think we ought to work with the Japanese and cut back in Korea, particularly with the repressive government there. There's no excuse for having all the tactical nuclear weapons we have in Europe ... There are a number ofthesemarginal foreign bases where we're phasing back as we did in Thailand and the Philippines. We ought to concentrate our bases where our problems really are. Then you go to weapons systems. I think we've got loo many airrcalt carriers. We've got 14. The Soviets have one tittle one. We might be just as safe with nine or 10 ... The B-l bomber is a 524 billion program. We don't need it. Cruise missiles would be better and cheaper if we have to have a replacement system. The Trident submarine force is not necessary... Q. When you put this package together, will it balance immediately, or will it mean an interim deficit or new taxes? A. No. Obviously some of these things bite quicker than others ... Over a fairly quick period of time we'd be better off to make the kind of federal investments I'm talking about CUSTOM DRAPERIES AND BEDSPREADS FACTORY-MADE! • 31% aid 58% Off - Hilled Tiie Oily Custoi Draperies mi Bedspreads Now is the time to order custom-made draperies and bedspreads - and save 30 percent and 50 percent. Come in and see our selection of hundreds of fabrics and colors and patterns - high in fashion and quality, but low in price. 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The Republican program says the way you deal with inflation is indirectly — you don't take on inflation, you raise interest rales, and you slash federal spending, and eventually in an indirect kind of way, this will tamp down inflation and it'll level off and the economy starts to come back, but it may be years. ' I'm not pepared to wail years. So, if this is going to cause inflation, you move in three or four ways. You first move on energy though a massive energy conservation program to help hold down this very bad part of the Consumer Pric. 1 ^ Index. You keep price controls on domestic oil, old oil ... That would help dramatically reduce inflation. And then when you get to the ultimate point, the bottom line is, all right, if all of those are not doing the job, are you prepared to go to some kind of controls? And the answer is, I am... I would go in stages. One is to jawbone. You have a cost- of-living outfit that could point to danger and alert people and shame people into doing the things that are more respon- South Africa grain crops suffer setback WASHINGTON (AP) - Feed grain production in South Africa, a competitor of U.S. farmers in world markets, suffered sible. Secondly, if that isn't enough, and I suspect that it will not be enough, this vigorous cost-of-living organization would have the power to delay price increases ... And if that doesn't do it, I'm prepared to talk about standby wage and price controls across the board, because I think it's more important to put people to work. Fergus Falls (Hit.) Journal Mon., April 26,1976 12 a iiisrp setback because of recent poor weather, the Agricul- lure Department says. 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