‘Just Say No’ When Lobbyists Seek Tax Breaks, Reagan Urges

President Reagan, borrowing a slogan from his wife, Nancy, rallied backers of a Senate tax revision bill Wednesday behind a call on Congress to “just say no” to an army of special interests bent on preserving preferential tax breaks.

“Overall, this bill is a giant step forward,” Reagan said. “And I hope I can count on each of you to do your utmost to see to it that no holes are drilled through the bottom of this tax reform boat before we get a chance to launch her.”

Speaking to about 150 tax reform supporters in the Old Executive Office Building, Reagan hailed the bill approved last week by the Senate Finance Committee as a “bold and innovative” plan and “a major victory for the democratic process.”

Says Majority Benefit

Reagan asserted that only taxpayers “who have made extensive use of tax shelters and other schemes and have not really been paying proportionately a fair share of the tax burden” would pay more taxes as a result of the plan.

Reagan urged pressure on the Senate to protect the bill from an attack by interest groups whose tax preferences are in jeopardy.

Alluding to the theme of an anti-drug campaign led by the First Lady, Reagan asked his loyalists to “take this message” to members of Congress: “Tell them when the special interests come around, they should just say no.”

Meanwhile, a member of the Finance Committee, Sen. David Pryor (D-Ark.) cautioned that a $5.5-billion list of “transition rules” being added to the bill could threaten the entire package. Those rules, common to most tax bills, temporarily exempt one or more industries from various tax provisions to ease the effects of the changes.

Wants Committee Reconvened

In a letter to Committee Chairman Bob Packwood (R-Ore.), Pryor asked that the committee be reconvened to discuss those transition rules. He said a rule that would allow steel companies to cash in investment tax credits is a breach of trust and faith with other panel members.

The actual language of the bill, including the transition rules, is still being written.