WASHINGTON OUTLOOK BW

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000700140001-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 16, 2016
• Document Release Date: December 10, 2004
• Sequence Number: 1
• Publication Date: November 26, 1966
• Content Type: MAGAZINE

A o~( For R IeaWe 2004/12/17: CIA-
November 26,1966 From: business, Week, 26 "ovember 1966.'' ;
. LBJ may wait "
for political
word on taxes
But if the indicators continue to send out mixed signals as they are
doing now, purely economic factors may wind up playing a secondary
role in the final decision. Political factors may take over.
A hint came' from Texas this week, where,the President is recuperating.
The word is not to count on a decision soon after a new batch of economic
indicators comes in Dec. 10 (page 47). The issue may not be settled until
January-and by then the new Congress will be in session and the Presi-
dent will be getting a full political reading on taxes.
Some current
theories will
rile Congress
ters and could rally a strong Congressional drive for more probing.
increase, he will take particular pains to convince'lawmakers that he has),
no such strategy in mind.
Another essentially political idea is certain to annoy Congress. Some
economists urge a tax increase on the ground that regardless of whether it
turns out to be needed for strictly economic. reasons, it will help condi-
tion Congress and the public to the idea of quick turns in fiscal policy-
something long advocated by academicians. Congress will hardly agree
that it needs to be taught lessons of this kind.
Another political factor is certain to play a role. Johnson will be told
by Chairman Wilbur Mills (D-Ark.) of the House Ways & Means Com-
mittee that a tax increase will be acceptable only if accompanied by large
cuts in spending for civilian purposes. Johnson could decide this is too
high a price to pay.
Russell joins
critics of
Warren report':
a pro-Castro committee. Russell has enormous prestige in intelligence, mat- _
whether' all the facts were brought out concerning Oswald's. dealings with
stay of the assassin, Lee Harvey Oswald, in Russia from 1959 to 1902, and
Every jiggle in the economic pressure gauges and performance charts sets
policyrnakers to brooding Iliese days.
They are seeking some kind of sign that will tell them whether a tax
increase will be needed next year to damp down inflation, or whether
current soft areas mean the inflation danger is over.
Lawmakers will find two current lines of speculation hard to swallow.
One line is that President Johnson will propose a tax increase, to be
on the safe side about inflation. Then, if the economy softens, he can make
political points by canceling the increase in .1908, when he presumably
will be running for reelection. If Johnson does ask Congress for a tax
The disclosure by Senator Richard R. Russell (D-Ga.) that he is dissatisfied
with the report of the Warren Commission on the assassination of President,
Kennedy increases the chances that the whole matter will be reopened.
Russell was a member of the Warren Commission and has long been +;'
chairman of the Senate committee that oversees the Central Intelligence
Agency. He wonders whether more could have been learned about the
palm in There is at least some balm for Johnson in the long list of Democrats de-
iiiJeat
feated in. the Nov. 8 election. Many Democrats who had jobs before the
ApprW#8AtPR LMAR%FY0~VffAr!#0~19 ~f 9F ~8 P8RtM 90beyer
in Johnson's constant hunt for talent.
' election are available now for federal appointments, providing some relief