Dukakis Defends Deficit Plan at Forum
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HENNIKER, N.H. — Michael S. Dukakis, the New Hampshire primary’s Democratic front-runner, found himself on the defensive Thursday night as former Arizona Gov. Bruce Babbitt denounced his deficit-reduction proposals as vague “flimflam.”
The repeated criticism came during a New Hampshire town meeting forum and prompted Dukakis, the governor of neighboring Massachusetts, to devote his entire closing statement to defending himself.
Babbitt said Dukakis has not been specific enough about revenue sources or program cuts and “if we are going to merit the support of the American people, we’ve got to deal with the deficit and talk about how we are going to pay for these things, honest and straight.”
Balanced Nine Budgets
Dukakis struck back in his closing remarks, saying he had balanced nine state budgets in a row, and was about to balance a 10th.
“I know how to cut spending, Bruce, I’ve done it,” he said.
The finger-pointing began on the second question of the 90-minute program, on whether the candidates would offer new taxes to lower the deficit.
Sen. Albert Gore Jr. (D-Tenn.) said he is not proposing any new taxes, but that by January, 1988, they may be needed.
Dukakis said he wouldn’t rule any out, but said his first priority would be raising tax compliance--collecting taxes from legitimate taxpayers who now are not paying.
$35 Billion in Revenues
“Just raising tax compliance from 81% to 86% would raise $35 billion of additional revenue,” he said.
But Babbitt called the answers from his fellow Democratic contenders “a wonderful illustration of what’s wrong, not only in the Democratic Party, but in this country.”
“They both said, ‘I won’t rule it out . . . but in the meantime, I’m not willing to talk about it,’ ” he said.
He said the deficit won’t be cut “with all of this kind of flimflam, talking around it and refusing to be honest.”
Babbitt said he would cut $40 billion next year with $10 billion in domestic cuts, $10 billion in military cuts and raise $20 billion with a “progressive consumption tax.”
Only Way to Cut Deficit
“And there is not an honest person in this audience or in this country” who will say there is another way to cut the deficit, he said.
Babbitt, Dukakis and Gore were the only participants in the forum.
Dukakis said he would cut government spending on programs such as the Strategic Defense Initiative, and start programs to get people off welfare, which he said has saved $120 million a year in Massachusetts and could save billions nationally.
But, he said his first priority would be to collect unpaid taxes.
“That’s not foolishness Bruce, that is real,” he said.
Afterward, Babbitt said he was not picking on the front-runner to get more attention. “I think there is a market for truth-telling.”
And Dukakis said he didn’t feel picked on. “As long as it’s friendly and respectful, I think it’s fine.”
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