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Feldstein still urging taxes that Reagan budget omitsSkip to next paragraph
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Martin Feldstein, President Reagan's chief economic adviser, once again is urging $50 billion in tax increases for up to three years to help hold down deficits and keep the recovery from lagging, it was reported Thursday.
On Tuesday, Congressmen were given an early look at the preliminary fiscal 1985 budget that President Reagan is backing, which does not include the tax increase. It would include further cuts in social spending, record defense spending, and a $186 billion deficit, congressional sources said.
Under the proposal, defense spending would increase from $268.6 billion in fiscal 1984 to $305 billion in fiscal 1985.
Defense Secretary Caspar Weinberger had requested a $322 billion defense authorization for 1985.