MILLER SAYS REAGAN OPPOSES U.S. EXCISE TAX HIKES
Office of Management and Budget
director James Miller said President Reagan opposes increases
in the federal excise taxes on gas, cigarettes or alcohol to
help reduce the federal budget deficit.
    In an address before a group of House Republicans, Miller
reiterated Reagan's opposition to an oil import duty. "I think
also he would opose an increase in the gas tax."
    He said there was no reason to think Reagan had changed his
opposition to a cigarette tax hike. "In the case of the
cigarette tax, we have no evidence the appropriate tax is
higher than now, and the same on wine and spirits."
    Miller urged the Republicans to hold firm against a tax
hike to reduce the estimated 174 billion dlr deficit for the
1988 financial year.
    House Democratic budget writers are expected to recommend
an 18 to 20 billion dlr revenue increase as part of the 1988
budget. However, the composition of the taxes would be left to
the tax-writing House Ways and Means Committee to decide.
    Reagan's 1988 budget proposed 22 billion in revenue
increases from sales of federal assets such as the Amtrak
railroad, higher federal fees for services and larger
individual payments for social programs.
    "It's so essential to us to hold on that point of no tax
increase," Miller said.
    He added that House Speaker Jim Wright's proposal to set a
new tax on security transactions was "a nonstarter" with the
White House. The tax would be a tax on capital which would
discourage all but the most profitable short-term transactions
and could lead to creation of a duty-free market abroad.
    "Control spending, get the deficit down and oppose any tax
increase," Miller urged the Republicans.
    Congress has set 108 billion dlrs as its deficit target for
1988.
 Reuter
