U.S. BUDGET DIRECTOR WARNS AGAINST TAX INCREASE
The director of the Office of
Management and Budget James Miller warned that a tax increase
would jeapordise real U.S. economic growth.
    "It's a bad idea. We don't need more money to balance the
budget. We need to reduce spending and avoid things that would
halt economic expansion," Miller told students at the
University of Pennsylvania's Wharton School.
    "I think economic growth could be threatened mightily if we
have a tax increase or by the perception that we're giving up
on deficit reduction," he said.
    Miller criticised a proposal by House speaker Jim Wright to
put a one pct tax on securities transactions.
    He said the tax would probably be ineffective because
people would avoid by holding their portfolios in other
instruments, like real estate, or simply by not trading as
often.
    Miller said he doubted this proposal would pass.
    "I think it is frankly all but political suicide to
advocate a tax increase unless the president championed it as
well," he said. "And he's not going to do it, in fact he would
veto a tax increase," Miller added.
 Reuter
