Gas, cigarettes, liquor face US tax increases

January 22, 1982

President Reagan has decided to seek temporary increases in federal excise taxes on gasoline, cigarettes, alcoholic beverages other than beer, and some luxury items.

The President was urged by his advisers to approve the tax increases to boost revenues and hold the projected 1983 deficit to $80 billion, officials said.

Some of the proposals will be unveiled in the State of the Union address Reagan delivers Tuesday to a joint session of Congress. Others will appear in the fiscal 1983 budget he sends to Congress Feb. 8.

Officials have said the selective tax increases will be accompanied by a sweeping proposal to transfer some welfare, education, and transportation programs to state and local governments.