Carter, Ford Cite Need for Higher Taxes

WASHINGTON — The Bush Administration could reduce the nation’s budget deficit by $40 billion annually by raising non-income taxes while cutting spending, former Presidents Jimmy Carter and Gerald R. Ford said in a report released today.

Carter and Ford met with President-elect George Bush to present their report, entitled “American Agenda.” A host of influential people, including former Secretary of State Henry A. Kissinger and ex-Treasury Secretary W. Michael Blumenthal, contributed ideas to the report.

The ex-Presidents listed the budget deficit, which is expected to reach more than $150 billion this year, as the No. 1 priority for the Bush Administration.

The report suggests taking a number of steps until the budget is balanced. They include holding defense spending at the current level, adjusted for inflation, for four years; increasing Social Security benefits at an annual rate of 2% less than the Consumer Price Index, and reducing Medicare fees for doctors, agriculture price supports and public works and transportation appropriations, while increasing taxes on gasoline, cigarettes, beer and wine.

Bush has said he and his economics team will move swiftly to tackle the deficits once he takes office Jan. 20. He has promised, however, not to raise taxes.

The report listed other proposed priorities, ranked in descending order, as national security and arms control, the savings and loan crisis, Third World debt and international trade.