Word: reagans
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...President is willing to accept a tax increase, a step he has ferociously resisted in the past with the threat of a "make-my-day" veto. But with at least half of the budget effectively off limits to spending surgeons, even some Republicans in Congress believe that Reagan will have to compromise on this issue. As long as the President clings to his goals of a growing defense budget and protecting the safety-net social programs, says Domenici, "there will have to be some sort of tax enhancement." Possible candidates are a tax on oil imports, which would raise...
...foreign policy, Reagan faces no challenge so compelling as producing something tangible from his new, more pragmatic approach to U.S.-Soviet relations. In a surprise move last week, Moscow agreed to allow Reagan to speak directly to the Soviet people on New Year's Day, and Gorbachev will likewise address the American people. The Soviets have long resisted giving the persuasive and telegenic Reagan such exposure, but apparently changed their minds in the hope that Gorbachev could raise U.S. expectations for the summit...
...question is whether the President is willing to negotiate on his Strategic Defense Initiative, better known as Star Wars. This is the kind of issue that puts the two sides of Reagan's persona at conflict. The visionary side sees SDI as a salvation for mankind, a foolproof way of rendering the nuclear threat impotent. The pragmatist in the President may realize that some sort of compromise on SDI, perhaps an agreement to forgo its development and deployment phases for a time, might be the only way of winning Soviet agreement to deep cuts in the mounting arsenals of offensive...
...crisis in 1986, domestic or foreign, will become inextricably tangled in the rising partisan rhetoric of a midterm election year. Much as Reagan wants the Republicans to retain control of the Senate, where they hold a 53-47 majority, as a counterweight to the Democrat-run House, he knows that doing so will be no easy task. Two-thirds of the 34 Senate seats at stake in 1986 are held by Republicans. In the House, the Democrats are expected to retain, and perhaps strengthen, their 253-182 advantage...
...Reagan plans to campaign and raise funds for vulnerable Republican candidates. Yet the President will probably be taking to the stump with mixed feelings. Whatever the outcome of the midterm race, it will mark the last election of his tenure and signal the real beginning of the presidential race to succeed him. With wide-open nomination battles all but certain in both major parties, the end of 1986 will usher in a two-year political hullabaloo that will increasingly drown out more measured discussions of how to handle the deficit, taxes and the critical challenges of the nuclear...