Kennedy Favors Tax Cut To Ease Unemployment

WASHINGTON--Sen. Edward M. Kennedy '54 (D-Mass.) said yesterday a tax cut may soon be necessary to cope with rising unemployment.

Kennedy added that tougher wage-price guidelines to deal with inflation are also imminent.

"I today don't call for a tax cut, but I think we are going to have to be sensitive to the need for that over, potentially, the latter part of the year and the first part of next," he said.

Although he still has not decided whether to run, Kennedy said he is "heartened and encouraged" by the support generated in the ten days since he announced he had not precluded the possibility of a presidential bid.

While supporters of President Carter say a Kennedy challenge could make the Democratic nominee vulnerable in the general election, Kennedy said past contests have "energized the party."

Kennedy offered no specific alternatives to Carter's economic policies, but questioned "whether people have a sense of confidence that he can deal with these issues."

Polls released last week showed only 19 per cent of those questioned rated Carter's work excellent or good.

Georgia State Sen. Julian Bond said Sunday he did not think Carter could win re-election. "Despite the president's decency and honesty, he lacks the abiltiy to work with Congress."

Bond said Kennedy would be an "overwhelming favorite" if he entered the race.

Second Guesses

House Speaker Thomas P. "Tip" O'Neill said he does not believe Kennedy will run against Carter, and Republican presidential candidate George Bush said Kennedy, because of his reputation as a big spender, will lose if he challenges the president.

O'Neill said Carter is a "very determined person" who "will ultimately win again."

Kennedy said he expects a "heavily contested battle" if he runs for the nomination, and does not believe Carter would withdraw in the face of unfavorable primary returns.

He added that "it is clearly a possibility" that Chappaquidick, the incident in which Mary Jo Kopechne drowned in Kennedy's car ten years ago, would be an issue during his campaign. "I'd respond to questions as I have," he said.