Excise Tax Hike Plan Hits Snag

WASHINGTON — The Senate Finance Committee began work today on a bill to overhaul the nation’s tax code, but the most crucial part of the chairman’s plan--raising taxes on items like gasoline and alcohol to pay for other breaks--ran into quick trouble.

As the 20-member Republican-led panel opened what is expected to be about two months of bill-writing, Chairman Bob Packwood (R-Ore.) argued that if his proposed excise tax changes are defeated, the remainder of his plan will fall apart and probably not be acceptable to President Reagan. No votes were taken in the initial session but many senators’ comments showed a reluctance to raise excise taxes.