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...Regan that the spending side of the ledger is the place to reduce the budget deficit. But Feldstein maintains that if spending cannot be cut sufficiently because of defense needs or the growth of social programs, then taxes must be raised. Along with his Administration ally, Budget Director David Stockman, Feldstein urged the President to include a tax hike in the budget, but Regan's no-tax stance won out in the White House debate. Neither the President nor his political advisers wanted to propose tax increases in an election year...

Author: /time Magazine | Title: Bombarding Reagan's Budget | 2/20/1984 | See Source »

...negotiations began with a two-hour session at Blair House, the elegant building across Pennsylvania Avenue from the White House. The Administration's team included Regan, Stockman and Baker. On the congressional side, two Reaganite stalwarts, Senator Paul Laxalt of Nevada and Congressman Trent Lott of Mississippi, represented the Republicans. The Democrats were House Majority Leader James Wright of Texas and Senator Daniel Inouye of Hawaii...

Author: /time Magazine | Title: Bombarding Reagan's Budget | 2/20/1984 | See Source »

...debates within the Administration over the speech draft, Feldstein, Office of Management and Budget Director David Stockman and Secretary of Commerce Malcolm Baldrige contended that Reagan should at least renew a proposal he made reluctantly last year for a threeyear, $50 billion tax increase, conditional on congressional approval of deep spending cuts and a string of other "ifs." But Reagan's philosophical convictions make him loath to propose any tax increase any time, and his political sensibilities make him doubly loath to do such a thing in an election year. At one point, aides inserted in a State...

Author: /time Magazine | Title: Reagan Gets Ready | 1/30/1984 | See Source »

Frustration over such defeats drove Stockman to the brink of insubordination. In an interview in FORTUNE, he castigated "dreamers, including some in the Administration," who think the deficit can be sharply reduced by spending cuts. He derided the idea that "there are vast pockets of fraud, waste and abuse out there" that could be eliminated painlessly. The clear implication was that taxes must be raised. Though his comments were reminiscent of those he made to the Atlantic in 1981, which sent him to Reagan's "woodshed" and nearly cost him his job, the Administration this time shrugged off Stockman...

Author: /time Magazine | Title: Reagan Gets Ready | 1/30/1984 | See Source »

...increased, after he had promised to cut them, he be gan referring not to taxes but to "revenue enhancements," a term apparently invented by Lawrence Kudlow, formerly of the Office of Management and Budget. The tendency seems to be spreading. A spokes man for Budget Director David Stockman won special recognition for declaring that the Administration was not considering a means test for Medicare but a "layering of bene fits according to your income." The poor, in fact, are regularly euphemized into invisibility by being given new names such as "disadvantaged." One of the oddities of euphemisms, though, is that...

Author: /time Magazine | Title: Essay: Of Words That Ravage, Pillage, Spoil | 1/9/1984 | See Source »

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