Senate Panel to Study Tax Hike to Meet Deficit Goals
The Senate Finance Committee said today it will consider tax increases to help meet Congress’ deficit-reduction targets--despite President Reagan’s veto threats.
The committee agreed to so inform the Budget Committee in a letter that, in chairman Bob Packwood’s terms, “is broad enough to let the committee meet the (1987 deficit reduction) target any way we see fit.”
“Does that include a tax increase to pay for it?” asked Sen. Russell Long (D-La.).
“That’s correct,” replied Packwood (R-Ore.).
Reagan, while saying a tax increase would be vetoed, submitted a fiscal 1987 budget that envisions $17.2 billion in increased revenues over the next three years, including new user fees and an extension of the 16-cent-a-pack tax on cigarettes.
In its letter to the Budget Committee, the Finance Committee pledged to meet its deficit-cutting targets but pointed out it will make cuts or raise revenues as it wishes--even if that conflicts with Reagan’s budget.
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