Newspaper article THE JOURNAL RECORD

$23 Billion Tax Reform Shortfall Seen

Newspaper article THE JOURNAL RECORD

$23 Billion Tax Reform Shortfall Seen

Article excerpt

WASHINGTON (AP) - Congressional analysts dealt a blow to President Reagan's tax plan Wednesday, saying proceeds from corporations under four major provisions would fall at least $23 billion short ofadministration forecasts over the next five years.

Throughout the 1990s, major corporate provisions of Reagan's plan would produce an average of $14 billion a year less than the amount that current taxes would yield, the non-partisan Congressional Budget Office said.

It was the latest dash of cold water on Reagan's overhaul plan, which has run into increasing criticism after getting off to a fast start last month when the president unveiled it in a nationally televised speech.

Rep. Dan Rostenkowski, D-Ill., who followed up Reagan's speech with his own nationally televised remarks endorsing the concept of ""tax reform'' - but not Reagan's proposal specifically - said Wednesday that the budget office figures ""cast doubt on the balance of the president's plan.''

""But they are not definitive,'' said Rostenkowski, chairman of the tax-writing House Ways and Means Committee. He said his panel will use other estimates, currently being drawn up by the Joint Committee on Taxation, in drafting a tax bill.

""If the joint committee's analysis reveals a significant shortfall in revenues, I will ask the administration to make up the difference in additional revenue-raising proposals,'' Rostenkowski saidin a statement. ""I will not ask the committee to begin drafting a House bill until we have complete confidence in the revenue estimates - and a working agreement with the administration.''

""Ever since its introduction, the plan has prompted reports of substantial revenue losses,'' Rostenkowski said. ""Revenue estimating has become the hottest game in town.''

Rep. William Gray, D-Pa., chairman of the House Budget Committee, said that, based on the budget office figures, Reagan's plan ""could further fuel already-high federal deficits. …

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