Nation: We're Taking Control

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Opponents of Long's measure were hastily trying over last weekend to make some basic changes. Ted Kennedy, for one, was seeking allies to keep the personal exemption at $750, a step that he figures will save $12 billion a year in federal revenues. That amount would then be redistributed to middle-and low-income taxpayers. The full Senate is expected to vote on the bill this week, and the House will have its turn next week. Despite his threats, Carter is not expected to veto the measure if some acceptable compromises are made. The public is calling for a tax cut, and both Democrats and Republicans are eager to respond. Public Works. In greater danger of a presidential veto is the $10.2 billion public works appropriation, including the much publicized water projects. The bill was overwhelmingly approved by the Senate last week—86 to 9—and earlier by the House. The clash over this measure could make the Camp David era of good feelings a distant memory. Members of Congress want their dams approved before Election Day, and some of them have sent word to the White House that they might abandon the celebrated gas compromise if the President persists in his opposition. But Carter says he will not back down whatever the political cost. "If we continue the age-old policy of pork-barrel allocations in the public works bill," he said at his press conference, the Administration would be setting a "horrible example" for the rest of the nation in the effort to control inflation. If Congress overrides his veto—a distinct possibility —Carter can still claim that he did his best to cut wasteful federal spending.

Taking advantage of the Camp David momentum, Carter is not only fighting for unfinished bills that have been placed before Congress but is even reviving legislation that his opponents thought they had killed. He and Health, Education and Welfare Secretary Joe Califano decided to resuscitate the hospital cost containment bill, which was suppressed in committee last summer by pressure from the medical lobby. Carter probably figures he has nothing to lose politically since the public is angry about inflation in general and about soaring medical costs in particular. In August, hospital costs rose .9%, second only to the 1.1% leap in gasoline prices. Carter originally asked for a 9% ceiling on annual hospital cost increases. Compromise bills have now been proposed, but all of them face an uphill fight. Complains a congressional insider: "The White House guys came out of Camp David and think they can work miracles. They've upped the ante on everything. These are very naive people."

Camp David clearly improved Carter's standing with Congress and the public. "My reputation as a capable leader was enhanced," he said, quite deadpan, at his press conference. But the spirit of Camp David will not linger indefinitely, and Carter will have to prove his leadership many times over in the battles that lie ahead with Congress.