Losing Big Under Treasury Ii

The plan hits high-tax states and the three-martini lunch

One item would be a major provider of new revenue for the Federal Government, but it could also turn President Reagan's tax-reform plan into a tax increase for millions of upper-income Americans in high-tax states. The other would bring in only peanuts, relatively speaking, but it could radically change the life-styles of businessmen, professionals and their clients throughout the nation. Together, the proposals to eliminate the deductions of state and local taxes and to restrict severely those for business entertainment have emerged as two of the most controversial parts of the President's tax package. Both have already stirred passionate campaigns of...

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