Reagan Raps High-Tax States, Assails ‘Knee-Jerk’ Increases : Says His Proposals Would Change U.S. ‘for Better, Forever’

President Reagan, taking a slap today at high-tax states such as California, lauded jurisdictions that impose fewer levies and promoted his tax overhaul plan as one to change America “for the better and forever.”

Defending his plan’s proposals to drop deductions for state and local taxes, Reagan praised Oklahomans for keeping state tax rates low.

“Some state governments outside Oklahoma have not yet learned to say ‘no’ to special interest groups and higher taxes,” Reagan said. “(I) just don’t believe the good people of Oklahoma or other low-tax states, like Texas, Montana, or New Hampshire, should be forced to pay for their lack of resolve. Do you?”

In remarks at a lavish Republican fund-raiser, Reagan also issued a warning to Congress as it debated resuming aid to rebels fighting Nicaragua’s leftist government.

‘Terrorist Allies’

Reagan charged that the Soviet Union and its “terrorist allies” Libya and Iran are trying “to establish a beachhead on our doorstep.”

During stops here and in Atlanta to help raise at least $850,000 for Republican Senate campaign coffers, the President mixed promotion of his tax overhaul plan with a call for U.S. action to counter the threat of communism in Central America.

“History will not wait upon a passive America. The time is now to understand that communism has already made its choice--it is an aggressive, implacable foe of freedom.”

Stumping for Sen. Don Nickles at a $250-a-plate luncheon, Reagan said he and the freshman Republican “agree that the federal government is not our greatest resource; it’s no great gusher of black gold; the federal government is the single greatest obstacle to our success.

“Some people have labored so long to make government bigger, they’ve developed a knee-jerk addiction to tax increases. And every time their knee jerks, we get kicked,” the President added.

‘Freedom, Fairness, Hope’

Reagan touted his plan of lower tax rates for individuals and businesses and fewer deductions as offering Americans “a new future of freedom, fairness and hope.” He said he intends to pass on to the next generation “a government and tax system of, by and for the people, not the other way around.”

On Central America, Reagan said the United States faces “a major challenge to democracy and our own security from Soviet-sponsored subversion and aggression.”

“Congress can no longer ignore the obvious: The Soviet Bloc nations and their terrorist allies Libya and Iran are pouring in weapons and ammunition to establish a beachhead on our own doorstep,” Reagan said.