Letter from Washington

The Senate Finance Committee’s unanimous approval of a bona-fide tax-reform bill has given Ronald Reagan’s domestic agenda unstoppable momentum. “The special-interest boys are just beginning to see how severe their problem is,” says a GOP senator. “They’re in for the fight of their lives.”

Some of the provisions likely to panic lobbyists include: the jump in the capital-gains tax from 20 to 27 per cent; the entertainment-deduction cut (100 to 80 per cent); stringent limits on personal interest allowances; loss of deductibility of contributions to Individual Retirement Accounts (IRAs) for employees covered by a private pension plan.

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The Senate Finance Committee’s unanimous approval of a bona-fide tax-reform bill has given Ronald Reagan’s domestic agenda unstoppable momentum. “The special-interest boys are just beginning to see how severe their problem is,” says a GOP senator. “They’re in for the fight of their lives.”

Some of the provisions likely to panic lobbyists include: the jump in the capital-gains tax from 20 to 27 per cent; the entertainment-deduction cut (100 to 80 per cent); stringent limits on personal interest allowances; loss of deductibility of contributions to Individual Retirement Accounts (IRAs) for employees covered by a private pension plan.