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Administration Tentatively Backs Excise Tax Hikes

United Press International

The Reagan Administration today tentatively endorsed a plan to raise alcohol, tobacco and gasoline taxes to pay for lower income tax rates as part of an overall tax reform bill.

Assistant Treasury Secretary J. Roger Mentz told the Senate Finance Committee that the Administration could accept “selective” excise tax increases, particularly on items such as beer and wine that have not been raised in 25 years, as part of a revenue-neutral tax reform bill.

Mentz added that distilled spirits, tobacco and motor fuels would be other logical candidates for higher excise taxes.


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