Reagan comment

Press, 2 December 1987, Page 39

Reagan comment

NZPA Washington President Reagan has said the SUS 76 billion deficit cut agreement between the White House and Congress was "an adequate deal" that would preserve economy stimulating tax reductions. “As I have said many times, the result of these negotiations is not a perfect deal — far from it — but it is an adequate deal, the best we could get and it’s a good first step,” he told business leaders at a White House meeting. Mr Reagan said that under the agreement taxes would remain lower, “paving the way for strong, robust economic growth through 1988 and beyond.” Mr Reagan said the Budget package was an “all or nothing” deal with no additional spending and no taxes that would harm the economy.

“Here is the bottom line on taxes and the budget deal: no rate manipulation, no tamper-

ing with indexing, no new broad-based taxes such as a sales tax or a new excise tax, no revenues other than the kind that we called for in our Budget — the one I submitted last January — and as I said, this agreement does not preclude me from vetoing a bad tax bill and I will.” The entire world had been waiting for a sign that the United States was putting its fiscal house in order and the agreement was that sign.

“Last week, the central banks of West Germany, the Netherlands, Belgium and France did lower their (interest) rates. From the Germans in particular, this was a welcome step towards economic policies that, like our own, stimulate growth,” he said. Mr Reagan said lower interest rates and more growth abroad would help the U.S. economy. He also vowed to do his part to ensure the Budget deal was* "adhered to and fully implemented."