Reagan Cites ‘Economic Renaissance,’ Urges Deficit Cuts, Tax Law Changes

President Reagan said Tuesday that the nation needs a new tax system as well as a deficit-reduction plan, and he urged Congress to approve both programs before the end of the year.

“We’re seeing an economic renaissance in this country,” the President said. “But we need two things to keep it going: cuts in the deficit and cuts in the tax rates.”

Reagan, addressing 200 religious leaders visiting the White House, said:

“Economic growth and tax fairness are gifts we owe ourselves and our children. And with your help, we’ll have them all wrapped up by the holiday season, ready to take effect in 1986. And then we’ll really have something to celebrate on New Year’s Day.”

On Capitol Hill, House Speaker Thomas P. (Tip) O’Neill Jr. (D-Mass.) said he will keep the House in session all weekend if necessary to complete action on the deficit-reduction plan, which would mandate spending cuts to achieve a balanced budget by 1991.

However, O’Neill said he will press for changes in the Senate-passed version of the measure. He said he will fight for changes to protect programs for the poor from cutbacks under the deficit plan.

On overhauling the tax code, White House spokesman Larry Speakes said there is “a good chance” that a bill can be completed by the House Ways and Means Committee and the full House by early December.