Reagan Plans Fall Drive to Push Tax, Budget Reforms : Pledges to Pull Out All Stops

President Reagan, claiming that the economy’s batteries have been recharged, said today he intends to launch a “major fall offensive” for tax reform, a balanced budget amendment and a line-item veto.

Reagan, meeting with a pool of five reporters in the Oval Office, said the House-Senate budget compromise, which broke a seven-month impasse, was “not as much as we had hoped. A compromise never is.”

He insisted, however, that it was “very close” to the figures he had originally proposed in the budget he submitted to Congress last February.

The budget adopted by Congress calls for $767.6 billion in spending for the fiscal year that begins on Oct 1. and projects $55.5 billion in savings during the year.

Pulling Out All Stops

“Come Labor Day, we’re going to pull out all stops on behalf of tax reform,” Reagan said.

In a brief statement opening his informal meeting with reporters, Reagan cited his Administration’s accomplishments, saying the economy is in good health, the nation is at peace, inflation rates are down and new jobs are being generated.

“Now, with the economy’s batteries recharged, we can look ahead . . . but there’s much we can and must do to make this a better year.

“We plan to launch a major fall offensive, going to the people . . . intensify our efforts for tax reform, the line-item veto . . . and finally a balanced budget amendment.”

Reagan said that he anticipates progress in the Geneva arms talks and that he looks forward to his meeting in September with his Soviet counterpart.

South African Policy

He also defended his policy of “constructive engagement” in South Africa but did not say whether he would veto a bill that has passed the House calling for economic sanctions against that country. Senate action on the measure is expected in September.

He expressed misgivings, however, about any form of economic punishment.

“The sanctions would not only be harmful to black citizens there but also to neighboring black countries,” he said.

On the budget compromise, Reagan said he regrets that some Senate Republicans may feel that he had pulled the rug out from under them by abandoning his support for scaling back Social Security benefit increases--a provision in the original Senate-passed budget.

Will Cut Spending

He said that, whatever the shortcomings of the budget in paring the nation’s deficit, he would do what he could to reduce government spending.

“New appropriations bills will be coming up, and I am looking forward to examining every one with my veto pen hovering over every line.”

Reagan’s meeting with reporters came near the end of his longest workday since his colon cancer surgery three weeks ago.

White House spokesman Larry Speakes said Reagan arrived at the Oval Office today at 9 a.m., half an hour earlier than last week. “He’s working a longer day,” Speakes said, adding that the President planned to work until about 2 p.m.