President Rules Out Excise Tax Rise: Congress Would Squander Money, Not Trim Deficit, Reagan Says
President Reagan displays his ÛÏveto pencilÛª* gift at Capitol luncheon as Sen. William L. Armstrong (It-Colo.) applauds.</br></br>President Reagan, staking out his strongest position yet against higher taxes, said yesterday that he would oppose any attempt by Congress to increase excise taxes as a means of reducing the federal deficit.</br></br>Responding to questions from out-of-town reporters at the White House, Reagan said he would fight attempts under way on Capitol Hill to raise the levies on such things as alcohol, tobacco and gasoline because Congress would only squander the money.</br></br>Tin opposed to taxing on this ... because if you look back in history, every major tax decrease has resulted in more revenues for the government at the lower rates, because of the stimulant of the economy," Reagan said. "Now to take Congress off the hook and give them more taxes, they'll just do more spending."</br></br>The presidentÛªs comments represented an escalation of his rhetorical battle with the Democratic-controlled Congress over the federal budget. Meanwhile yesterday. Democratic leaders sought a way to break a House-Senate budget deadlock in order to regain the offensive in the fight with the administration.