CAMPAIGN '74: Democrats: Now the Morning After

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In particular, Democratic leaders feel some pressure to come up with an alternative to Ford's economic proposals. That will be difficult, because the economic views of party members differ widely. Still, given October's 6% jobless rate and forecasts of up to 8% by next summer, the lame-duck session of Congress that begins next week should speedily approve a public service employment program and improved unemployment benefits. The Democratic versions of both will doubtless be more generous than Ford's proposals.

Contrary to the fears of many Republican businessmen and members of the Ford Administration, the 94th Congress seems unlikely to add to the inflationary pressures by increasing spending. Explains Representative Brock Adams, a liberal Democrat from Washington and member of the new House Budget Committee: "The American public wants that budget balanced whether they are liberal or conservative." But the balancing may be done differently from what Ford would prefer. The new Congress seems far more likely than its predecessor was to hold down or trim military budgets and foreign aid rather than cut spending on domestic social welfare programs. Further, despite organized labor's opposition, the Democrats also may enact stand-by authority for wage and price controls, thereby passing the buck to Ford, who opposes them.

Dead Surcharge. The President's proposed 5% tax surcharge on moderate and high incomes is dead, a victim of voter disapproval. Instead, Congress will possibly hand modest tax cuts to low-and middle-income people, balanced by the abolition of the oil depletion allowance, a trimming of real estate tax shelters and an increase in the minimum amount of income tax that wealthy people must pay.

Democrats will take action on a number of noneconomic matters as well. The Senate Rules Committee reopens its hearing Wednesday on Ford's nomination of Nelson Rockefeller as Vice President; the House Judiciary Committee will begin its hearing next week. The Senate may vote on the confirmation during the lame-duck session, but the House will probably postpone its vote until next year. If so, the new House will be less friendly to the nomination, though still likely, barring new injurious revelations, to vote for confirmation.

The new Democratic majority also may approve a host of bills that were tabled or stuck in committee this year. Among them: a national no-fault automobile insurance program, a national health insurance plan tied to Social Security, a consumer protection agency, tougher antitrust laws and further reforms of campaign financing.

To enact the Democratic programs, however, the party's congressional leaders will need Ford's help. Although they can muster the votes to pass their legislation, they will find it difficult to override his vetoes, particularly in the Senate, where the Democrats fell short of a two-thirds majority. In both houses of Congress, moreover, there is a residual core of Southern and conservative Senators who often vote with the Republicans. On the day after the election, Mansfield called on Ford and won his promise to go "more than halfway" in cooperating with the Legislative Branch. Thus, the intricate opportunity looms for both the Democrats and the President in 1976 to take credit or shift blame for whatever happens in the 94th Congress.