The Nation - News from Feb. 21, 1986

Senate Finance Committee Chairman Bob Packwood (R-Ore.) said his committee can hit President Reagan’s deficit-reduction targets, but implied the panel will consider tax hikes as well as budget cuts as a way to do it. About a third of Reagan’s requested $38 billion in budget cuts fall under the jurisdiction of the Finance Committee. Reagan ruled out general tax hikes in his fiscal 1987 budget, but did propose selected revenue measures including an extension of the current cigarette tax and increases in user fees on such things as federally guaranteed home loans.