Reagan Won’t Sign Treasury Tax Bill, Baker Says

Treasury Secretary James A. Baker said today that President Reagan will not sign the Treasury’s tax simplification proposal as currently drafted and may not send tax reform legislation to Congress this year.

“We have not made a decision on whether we would seek to present legislation,” Baker told the House Budget Committee.

Baker said, however, that in about four to six weeks the Treasury will be able to tell Congress whether a tax reform plan would be presented and said, “We would like to reform the tax code this year.”

“Would the President sign the Treasury’s tax plan?” Rep. Thomas J. Downey (D-N.Y.) asked.

“No, sir,” Baker replied.

The Treasury’s draft plan would eliminate most deductions and throw all taxpayers into three huge brackets, up to a maximum bracket of 35%. Individual taxes would most likely go down under the plan as drafted, and corporate taxes would go up.