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Wright Chosen Speaker of House by Democrats : Texan, After Unanimous Vote, Calls for Delaying 1988 Cut in Top Tax Brackets Until Deficit Falls

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Times Staff Writers

House Democrats on Monday chose Texan Jim Wright as Speaker for the 100th Congress and--apparently emboldened by his party’s success in last month’s elections and by the Iran arms controversy--Wright proposed delaying indefinitely the planned 1988 reduction of top tax brackets under the new tax law.

Wright, who was unopposed, was chosen unanimously to step up from majority leader to succeed retiring Rep. Thomas P. (Tip) O’Neill Jr. of Massachusetts as Speaker. House Republicans, meantime, were reelecting Robert H. Michel of Illinois as their minority leader.

In a statement to the Democratic Caucus--meeting in open session in the House chamber--Wright outlined an agenda for a Congress in which Democrats will control both houses for the first time since 1980.

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Reagan Objections Likely

Besides the suggestion that tax rates be frozen at the 1987 transitional rates until the nation’s budget deficit is reduced, key elements of that agenda are likely to be contested by President Reagan: an omnibus trade bill, an unspecified program to save the “family farm” and immediate re-enactment of the Clean Water Act that Reagan vetoed after the close of the last Congress.

In a brief news conference in the House press gallery, Wright declared that “it’s a mathematical impossibility” for the deficit to be reduced unless one of three courses is chosen: further slowdowns in Reagan’s already stalled defense buildup, more revenue from taxes or a combination of both.

Accusing the Administration of unfairly taxing the poor while granting tax relief to upper brackets, Wright urged that, until the deficit is solved, the planned reduction of the top marginal rate from 38% to 28% after 1987 be postponed until the deficit is under control.

“It’s not a tax increase--it only postpones a tax cut,” Wright told reporters.

Higher Taxes Foreseen

Many economists, however, believe that the new tax law’s much larger taxable income base, with many existing deductions disallowed, amounts to a de facto tax increase for many taxpayers in 1987. Under the new tax laws, the top rates are to drop to 28% after the transitional year of 1987.

Also elected unopposed and by acclamation by the Democrats was Thomas S. Foley of Washington to succeed Wright as majority leader.

In the only leadership contest of the day, Tony Coelho of Merced, Calif., was chosen as the party’s whip--the assistant majority leader--moving up from his post as chief congressional election fund-raiser. He defeated Charles B. Rangel of New York and W. G. (Bill) Hefner of North Carolina.

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Despite strong support by East Coast congressmen for Rangel, an influential and popular leader in the House Black Caucus, Coelho won decisively on the first ballot, 167 to 78. Hefner trailed with an undisclosed number of votes.

Lott Retains Post

On the Republican side, Trent Lott of Mississippi again was named whip, joining Michel in the party’s top House leadership posts. The two were elected on voice votes and without opposition by the 177 Republicans among the 435 House members.

Michel asked his fellow Republicans to “stand together and persuade thinking Democrats to join us.” And Lott asserted that, despite Republicans’ minority status, “we’ve been able to win some big victories” by persuading Democrats to join Republican causes.

Jack Kemp of New York, who is expected to run for President in 1988, chaired the proceedings, which will continue today with Republicans taking up proposed changes of party rules.

Kemp’s counterpart among the Democrats, Richard A. Gephardt of Missouri, was unanimously reelected chairman of his party’s caucus.

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