49 billion tax increase passes hurdle in House
The House of Representatives approved a $49 billion tax increase Wednesday which was favored by Democrats, Republicans, and President Reagan. It is aimed at reducing a federal deficit that could reach a total of $700 billion by 1987 if countermeasures are not taken.
The House voted 318 to 97 to raise the $49 billion over three years as the first part of a plan to cut $182 billion out of the forecast deficit by 1987.
The Republican-controlled Senate Budget Committee gave narrow approval to the President's 1985 budget after discarding several alternatives. The committee plan goes to the full Senate.