The Impact, in Dollars and Cents

What the changes will mean for tax reform and the budget

As soon as Treasury Secretary Donald Regan and White House Chief of Staff James Baker finished their pas de deux in the West Wing press room, Congressmen tried to put a cautiously upbeat spin on the news. "It seems logical once you get over the first surprise," ventured Indiana Republican Richard Lugar, chairman of the Senate Foreign Relations Committee. "It's something I wouldn't have thought of," said Senate Majority Leader Robert Dole of Kansas. "But it turns out it's a good switch."

That will mainly be determined on Capitol Hill, where the success or failure of the President's economic initiatives will...

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