SPRINKEL SAYS TAX HIKE WOULD NOT REDUCE DEFICIT
  Council of Economic Advisers chairman
  Beryl Sprinkel said the Reagan Administration remains strongly
  opposed to a tax increase, including 18 billion dlrs of new
  revenues in the budget plan by Congressional Democrats.
      "We believe that significant increases in taxes would not
  reduce deficits and could have adverse effects on growth,"
  Sprinkel told the House Rules Committee.
      He said the Administration wanted to continue its policy of
  gradually reducing deficits through restraining government
  spending and promoting economic growth. Sprinkel said cutting
  the budget deficit was the best way to lower the trade deficit.
  

