Regan Refuses To Rule Out Defense Cuts
LONDON, Nov, 11ÛÓTreasury. Secretary Donald T. Regan today refused to rule out cuts in defense spending and Medicare, or a tax increase, as part of the effort to trim the budget deficit.</br></br>ÛÏWell, what weÛªre saying is tax increases only as a last resort,Û Regan said in an interview on ÛÏThe Business Program,Û broadcast on BritainÛªs commercial TV channel.</br></br>In the interview taped Thursday, two dnys after the president won a landslide reelection victory, Regan said he was confident the administration will find excesses in the spending side of the budget.</br></br>ÛÏYou cannot tell me that thereÛªs no room left to cut the federal budget in the United States," said Regan. "Absolutely preposterous. There are billions there that can be cut.Û</br></br>Asked whether the cuts would include defense, Regan replied, "As far as the Defense Department is concerned, no.Û