MILLER SAYS NO U.S. TAX HIKES TO CUT DEFICIT
Director of the Office of Management
and Budget James Miller said the Reagan administration had no
intention of raising taxes in order to reduce the federal
budget deficit.
     "There will be no tax increases," he said three times
before a Management Briefing luncheon of Southern Methodist
University's Edwin L. Cox School of Business.
     The budget deficit, which is currently slated at 173
billion dlrs for fiscal 1988, is supposed to be reduced to 108
billion dlrs under the provisions of the Gramm-Rudman Act,
which calls for a balanced budget by fiscal 1991.
     Miller said he believes the budget deficit can be reduced
but added, "the surest way to put us in a pickle" would be to
raise or ease the Gramm-Rudman goal.
     "If we were to raise taxes so soon after tax reform, it
would create enormous uncertainty on the financial markets," he
said, adding that giving up on the will to reduce the deficit
would also create uncertainty.
     Miller reiterated the president's budget proposal that the
deficit could be reduced by a total of 42 billion dlrs through
increased revenues and spending cuts. An additional 23 billion
dlrs from economic growth is expected to result in the budget
deficit being reduced to the 108 billion dlr target.
     Miller said it was possible the Administration might
support an oil import fee, but added that the President was
concerned that such a move might have more adverse results than
benefits.
     He also said the Administration was seeking to spin off
Amtrak, which costs the government about 500 mln dlrs a year,
but added that he did not expect it to be accomplished this
year.             
 Reuter
