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IA studying Soviet ability
o track, detect submarines
Associated Press
WASHINGTON — The CIA is
studying whether the Soviet Union
an detect and track America’s nu-
lear missile-firing submarines, con-
idered the most invulnerable part
of the nation’s nuclear defenses.
The study has been given new im-
>etus by revelations in the Walker
amily spy case, in which some se-
:rets about U.S. tracking of Soviet
iubs may hdve been passed to the So
viets, according to people in the Pen-
agon and on Cdpitol Hill familiar
vith the project.
The study, expected to be fin
ished next year, was ordered by
Congress in a secret $10 million ap
propriation approved in 1985.
Details about how the U.S. subs
move quietly, and the way the
United States tracks Soviet subs, are
among the nation’s most closely
guarded military secrets.
Pentagon spokesman Michael I.
Burch was islted Thursday if the
study is tied to the spy allegations
surrounding former Navy Chief
Warrant Officer John A. Walker Jr.,
and three others under arrest — his
son, Michael; older brother, Arthur,
and friend, Jerry A. Whitworth.
J
igr-
art-
LI
Details about how the U.S.
subs move quietly, and the
way the United States
tracks Soviet subs, are
among the nation's most
closely guarded military
secrets.
“These things are constantly un
der review, and any time there’s a
potential for compromise, that fac
tor is put in the review,” Burch said.
“This is an evolutionary process of
constantly trying to keep our forces
superior to the Soviets’.”
Burch, questioned about damage
that may have been done by the spy
ring, said: “The potential loss of in
formation always gives us concern.
The secretary (Defense Secretary
Caspar Weinberger) has acknowl
edged that we have taken proper
precautions to try to offset any ad-
vantange that the Soviets might have
gained out of this episode. But the
investigation is still under way and
therefore the full extent of the loss is
not known.”
Burch declined to discuss details
about the CIA study or even to ack-
owledge its existence.
Because of the difficulty of track
ing objects in the vast reaches of the
oceans, submarines are considered
less vulnerable to detection and de
struction than land-based missiles
and long-range bombers, the other
two legs of America’s three-legged
nuclear deterrent.
The CIA study wzis ordered in the
wake of reports that Soviet planes
may have found some of the missile
firing subs, said the sources, who de
clined to be identified.
Sen. William Cohen, R-Maine, A
member of the Senate Intelligence
oversight committee and chairman
of the Armed Services seapower sub
committee, said, “The Walker case is
very serious, but just how serious re
mains to be seen.”
“The Navy is doing damage as
sessment right now on the Walker
case, but the CIA study goes beyond
that,” Cohen saick'
But some N^vy officials dispute
the need for the study. They argue
that the subs remain invulnerable to
attack and say that condition will ex
ist for the foreseeable future, the
sources said.
'Step in the right direction'
O’Neill praises tax plan
Associated Press
WASHINGTON — House Speaker Thomas P. O’N
eill Jr. pronounced President Reagan’s tzix overhaul
plan “a good beginning” Thursday but called for provi
sions to help the working poor.
As congressional tax writers continued to focus on
the details of Reagan’s proposal, Democrats began to
discuss expanding the number of tax brackets the plan
would contain to avert a windfall for those with million-
dollar incomes.
In rare testimony before a congressional panel, O’N
eill, D-Mass., cdutioned lawmakers against rushing
down “the difficult road to tax” reform in a drive to put
a tax bill on Reagan’s desk by Christmas.
“Haste makes waste in legislation, but I do think in
this 99th Congress we should be able to get a bill on the
president’s desk, ready for his approval,” he told the
House Ways and Means subcommittee on select reve
nue measures.
O’Neill said Reagan’s 1981 tax cut bill, enacted over
the speaker’s opposition, “failed to address the needs of
the working poor” and “contributed to the decline in
corporate taxes tis a source of federal revenue.”
“That was wrong in 1981 and it is wrong today,”
O’Neill said. But ne said the president’s new plan
"moves in the direction of reversing these trends."
“I welcome this historic shift in President Reagan’s
position since 1981,” O’Neill said. He called the new
plan “a good beginning” but said that if it is enacted,
“the working poor will still be pbying more taxes than
they did before he took office.”
Meanwhile, Rep. Dan Rostenkowski, D-Ill., chairman
of the Ways and Means Committee, told a breakfast
meeting of reporters that lawmakers are weighing an
expansion in the number of brackets under the propo
sal from three to four.
Rostenkowski made it clear that the idea is merely
one of many being discussed and is too new to have
gathered any strong support.
Under the concept, the fourth bracket would apply
to taxpayers with the greatest amount of annual in
come.
Reagan’s measure would shrink the number of
brackets from the current 14 to three, lower rates and
make an array of other changes in the name of fairness
and simplification.
The top bracket under Reagan’s plan is 35 percent,
down from 50 percent under current law.
The president’s proposal also would lower the maxi
mum tax on capital gains from 20 percent to 17.5 per
cent.
Rostenkowski said the fourth-bracket concept was
prompted by suggestions that the combined capital
gains and marginal rate reductions might produce
huge tax cuts for some of those with $ 1 million or more
in annual income.
Poll indicates majority feels
overhaul won't reduce taxes
Associated Press
NEW YORK — A majority of
Americans believe President Rea
gan’s tax overhaul plan won’t reduce
their taxes, but they believe the pre
sent system is too complicated and
they’re willing to give up some de
ductions for simplicity, a Media Gen
eral-Associated Press poll says.
The nationwide telephone poll of
544 adults, conducted June 4-5,
found a majority supported propo
sals to limit deductions on business
meals, condense the number of tax
brackets and increase personal
exemptions.
But a majority opposed eliminat
ing deductions for state and local
taxes and taxing a portion of medi
cal insurance premiums paid by an
employer. About half supported re
ducing deductions for interest pay
ments on all items except the home,
while about 40 percent opposed the
measure.
Support for limiting deductions
on business meals cut across all in
come groups, but wealthier people
were more likely than poorer people
to support condensing the number
of tax brackets.
Republicans were more likely
than Democrats to support each as
pect of the proposal.
The president’s plan, outlined last
week, could result in the biggest re
writing of the tax system in more
than 30 years. Reagan wants to re
duce individual and corporate tax
rates, raise the personal exemption
and eliminate or cut back several de
ductions to make more income sub
ject to tax.
The House Ways and Means
Committee is holding public hear
ings on the bill, and the president
has asked for action before the end
of the year.
Respondents in the Media Gen-
eral-AP poll were asked, “Do you
think Reagan’s plan will mean a
smaller or a larger tax bill for you, or
will your taxes remain the same if it
is passed?”
Forty-two percent say their taxes
would remain the same, 31 percent
said they would increase, and 19
percent say they would be smaller.
Eight percent didn’t answer or
weren’t sure.
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