Reagan Open to `Summit' With Hill Series: THE STOCK MARKET CRISIS: THE DAY AFTER
Yielding to heavy pressure from financial markets, Congress and advisers, President Reagan yesterday opened the door to an economic "summit" with Congress and the possibility of tax increases to deal with the federal budget deficit.</br></br>Reagan said he was directing White House aides to begin talks with congressional leaders and was "willing to be a participant" if necessary to reach a budget agreement. The president, who up to now has refused to consider even the possibility of a tax increase, said he was "willing to look at whatever proposal" the congressional leaders might make.</br></br>But senior officials cast doubt on whether Reagan would walk through the doors he had opened. Meeting with reporters less than a half-hour after Reagan's statement, White House spokesman Marlin Fitzwater said that the president "does not envision" the need for personal participation in a summit or a tax increase. {Related story on Page A11.}</br></br>Reagan made his statement yesterday after an emergency meeting with senior advisers that was triggered by Monday's stock market collapse. He met for 40 minutes in the living quarters of his White House residence with Treasury Secretary James A. Baker III, Federal Reserve Board Chairman Alan Greenspan, White House chief of staff Howard H. Baker Jr., deputy chief of staff Kenneth M. Duberstein and Beryl W. Sprinkel, the outgoing chairman of the Council of Economic Advisers.</br></br>An official familiar with the discussions said "Reagan was hesitant at first but realized that something must be done."