Reagan Calls Deukmejian to Thank Him for Support

Gov. George Deukmejian, who labeled President Reagan’s tax simplification plan “a good beginning,” received a telephone call from the President thanking him for his support, the governor’s office announced Wednesday.

During the conversation that took place Tuesday, Reagan also “acknowledged” Deukmejian’s concern that the tax simplification plan could hurt California’s agriculture and timber industries, Deukmejian’s office said.

Reagan has proposed an overhaul of the federal tax system that would include reducing individual tax rates, increasing allowances for individual exemptions and eliminating deductions for state and local taxes.

“The President said he would welcome additional comments and detailed analysis regarding the tax reform package’s specific impact upon California,” Deukmejian said in a statement released by his office.

‘Intend to Participate’

“I welcome his interest and concern about our views. And as I have indicated previously, we intend to participate, where and when it is appropriate, in the discussions that will be occurring as the tax reform plan moves through Congress,” he said.

In his weekly Saturday radio talk--modeled after the President’s weekly broadcast--Deukmejian said the plan would save individual taxpayers $3.1 billion while increasing corporate taxes by $2.2 billion.

“In general, I look favorably upon the President’s good beginning in the tax reform debate,” Deukmejian said. “But it’s only a beginning.”

Reagan told Deukmejian that he learned of the governor’s statement from news accounts of the broadcast.

Might Harm Industries

Deukmejian, a longtime Reagan ally, has said that he is concerned that the plan would harm industries “unique” to California, such as timber and agriculture, by altering depreciation and capital gains provisions.