SPRINKEL SAYS TAX HIKE WOULD NOT REDUCE DEFICIT
Council of Economic Advisers chairman
Beryl Sprinkel said the Reagan Administration remains strongly
opposed to a tax increase, including 18 billion dlrs of new
revenues in the budget plan by Congressional Democrats.
    "We believe that significant increases in taxes would not
reduce deficits and could have adverse effects on growth,"
Sprinkel told the House Rules Committee.
    He said the Administration wanted to continue its policy of
gradually reducing deficits through restraining government
spending and promoting economic growth. Sprinkel said cutting
the budget deficit was the best way to lower the trade deficit.
 Reuter
