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Nation : Tax to Spur Recycling Held Likely

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From Times Wire Services

President Bush, who has repeatedly pledged not to raise taxes, is likely to propose a levy on industry for the use of certain raw materials to encourage recycling, Administration sources said today.

The proposal is expected to be part of Bush’s fiscal 1991 budget blueprint, which he will present to Congress on Jan. 29, said officials who spoke on condition of anonymity.

Bush pledged repeatedly in the 1988 campaign and again last year not to raise taxes. He said a few weeks ago in a year-end interview that he hoped to stick with that resolution. The sources said they considered a levy on raw materials for recycling more in the nature of a user fee than a tax.

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The aim of the proposal, reported by the Wall Street Journal in today’s editions, would be to make it cheaper for industries to use recycled, rather than new, materials.

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