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Zschau Sorry for Two Views on Income Taxes

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Times Political Writer

As a rule, politicians hate saying they are sorry. So it was unusual to hear Republican Senate candidate Ed Zschau on Thursday saying it twice about his favorite subject, keeping taxes down.

“Yes, I do regret that. It was wrong,” the Los Altos congressman told a news conference here. He was referring to a multibillion-dollar income tax increase he proposed just two years ago. The measure died in committee.

In an interview with a handful of reporters later, Zschau said he also regretted his opposition in 1980 to Ronald Reagan’s proposal for massive tax cuts.

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“Yes, that was shortsighted,” Zschau said.

During the primary election campaign, Zschau expressed second thoughts about having introduced a tax increase bill. Now, he has found himself on the defensive again because of his new campaign emphasis on opposing tax increases. He traveled from city to city two full days this week pledging not to increase income taxes in his first term, if elected.

Regrets Positions

Zschau said the two positions on taxes that he now regrets stemmed from what had been at the time an overriding concern about the federal budget deficit. In 1980, while still a businessman only thinking of becoming a politician, he opposed Reagan’s ideas for cutting taxes to stimulate the economy. Zschau said he feared that this would drive up the deficit.

Then in 1984, with the deficit soaring to record levels, Zschau, then in Congress, introduced a bill that would have imposed a 5% surcharge on income taxes and also would have frozen federal spending.

Zschau said he has since come to believe that it is wisest “to bring down the deficit and balance the budget with spending cuts alone.”

In any event, Zschau said there is no comparison between his views on taxes and those of his Democratic opponent, Sen. Alan Cranston, who says he believes that additional taxes “may be necessary” in future years to balance the budget.

‘No Mean Feat’

In recent days, Zschau has gone from calling Cranston one of the biggest spenders in Congress to the biggest. “And that’s no mean feat considering the competition he’s got in the Senate,” Zschau said.

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“I guess what Sen. Cranston should do is sign what I call the ‘Mondale pledge.’ You remember Walter Mondale (the Democratic presidential contender)? In 1984, he pledged to tell the truth and to admit to the American people that he wanted to raise taxes. And if that’s Alan Cranston’s position, he can sign the Mondale pledge.”

Cranston said Zschau’s pledge not to support income tax increases is “irresponsible.” Cranston said war or unforeseen calamity could leave the Congress with no other choice. Cranston campaign manager Darry Shrago added that Zschau’s change of heart on taxes over the years “confirms the very point Sen. Cranston is making--when it comes to matters of national fiscal policy you cannot commit to any unbending approach.”

Campaign Apologies

As Zschau campaigned Thursday from Bakersfield to Fresno to Stockton to Sacramento, there were campaign apologies for more than positions on tax issues. A press plane chartered by the Zschau campaign was apparently hit by a passing truck while on the Tarmac at the Fresno airport during a campaign stop and rendered unflyable. The plane was stationary at the time and reporters were away at a press conference at the passenger terminal.

As a result, more than half of Zschau’s press entourage, including only the second television crew ever to travel on his campaign, was left stranded for a time in Fresno. Another replacement plane was later chartered.

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