Senate Panel to Study Tax Hike to Meet Deficit Goals
- Share via
WASHINGTON — 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.
Get the L.A. Times Politics newsletter
Deeply reported insights into legislation, politics and policy from Sacramento, Washington and beyond. In your inbox twice per week.
You may occasionally receive promotional content from the Los Angeles Times.
