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...income to 50%, from the present 70%; reducing the "marriage penalty," a provision in the tax laws that now forces many couples in which both husband and wife work to pay a higher tax on their combined earnings than they would if they were single and filing separately. David Stockman, Director of the Office of Management and Budget, had urged that these changes be wrapped into the first tax bill. The President instead decided to propose at first a "simple and clean" depreciation and income-tax bill that Congress just might be persuaded to pass swiftly. He will present other...

Author: /time Magazine | Title: The Unkindest Cuts of All | 2/23/1981 | See Source »

...Administration seemed more unified on budget cuts. Stockman reported that the Cabinet had agreed on 90% of the reductions to be recommended to Reagan, and that the President had quickly begun approving them. At one session he fingered a jelly bean, joked...

Author: /time Magazine | Title: The Unkindest Cuts of All | 2/23/1981 | See Source »

...pious support for the general idea of less spending. Already last week, Democratic House leaders, while advising their followers to go along with Reagan's proposal as far as they can, signed a letter warning Reagan to keep his bands off subsidies for development of synthetic fuels, which Stockman suggested chopping by $6 billion in the next fiscal year. Nor were Democrats alone in opposing specific cuts. Republican Governor John Dalton of Virginia objected to a proposal to reduce federal aid for construction of the 101-mile Washington, D.C., subway system, which benefits many commuters from his state...

Author: /time Magazine | Title: The Unkindest Cuts of All | 2/23/1981 | See Source »

Washington is wondering how long Stockman can keep "it." Reagan's trust in his lightning rod could weaken if it is struck too often. In the budget battles that lie ahead, what could damage Stockman most is his determination to be more of a Reaganite than Ronald Reagan...

Author: /time Magazine | Title: Reagan's Cutting Edge | 2/16/1981 | See Source »

...Administration's fuzziest signals involved its continuing internal debate over foreign aid. David Stockman, Director of the Office of Management and Budget, has recommended that instead of increasing foreign aid to $8 billion, as proposed by Carter for the 1982 fiscal year, Reagan should slash it to $5.4 billion, about the same as it was in 1979. This strikes many experts as wholly out of step with the Administration's determination to make the U.S. a more forceful world power. In the conduct of foreign policy, economic aid can promote peace or security, as in the volatile Middle...

Author: /time Magazine | Title: More Signals to the World | 2/16/1981 | See Source »

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