ROSTENKOWSKI SAYS TAX RISE NEEDED, DIFFICULT
U.S. House Ways and Means
Committee Chairman Dan Rostenkowski said a tax increase
probably would be needed but that Congress and President Regan
might not approve one.
    Rostenkowski, an Illinois Democrat, also told the Futures
Industry Association that he did not think congressional tax
writers would approve a tax on stock transfers or ease taxes to
promote U.S. Exports.
    He congratulated House Speaker James Wright for proposing
tax increases to help cut the budget deficit.
    Rostenkowski said he hoped White House Chief of Staff
Howard Baker could persuade President Reagan to support a
package of tax increases and spending cuts.
    He noted that Baker and Treasury Secretary James Baker both
supported tax increases in l982.
    Rostenkowski suggested that about 18 billion dlrs of new
taxes might have to be found, along with nine billion in
defence and spending cuts and another nine billion in domestic
spending reductions. But, he said, proposed tax rises would be
brought to the floor only if House Democratic leaders felt
there was Republican support.
    A string of indictments of Wall Street figures could move
some in Congress to support a tax on stock transfers, he said.
    "But the fact many people don't like what's happening in
financial markets doesn't mean they will be hit with a tax," he
said, noting that Wright's securities tax idea had not been
"fleshed out."
    Efforts by special interests to rewrite provisions of the
tax reform bill will fall on deaf ears, Rostenkowski predicted.
    The chief House tax writer also predicted congress would
approve legislation to reform the welfare system.
 REUTER
