The Economy: Revolt on the Hill

Traditionally, when asked to raise taxes, Congressmen heft their axes. This year, under heavy Administration pressure to approve a 10% surcharge on personal and corporate income taxes, the mood of Congress is that nothing will be done until the President wields a hatchet himself. In a humiliating rebuff to its Democratic leadership and Lyndon Johnson, the House of Representatives last week bluntly told the Administration that it should either make immediate and specific plans to cut federal spending or else jettison all hope of its urgently needed tax boost.

Congress itself, of course, has ample power to check spending...

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