American Notes CONGRESS

When the U.S. Senate gave initial approval last week to a $1 trillion budget that includes an $18.3 billion tax increase, it did not specify precisely how those new levies might be raised. One ploy Congress is almost certain to consider, though, is a steeper "sin tax" on such items as alcohol and tobacco. A congressional study has estimated that raising the federal excise tax on each bottle of wine and six-pack of beer by around 50 cents could swell coffers by more than $4 billion, while a 16 cents increase on each pack of cigarettes could bring in $2.9 billion.

Whether the legislators go after sin or something else, the proposed budget faces rough slogging at the White House. Says Administration Spokesman Marlin Fitzwater: "We do not agree that ((new)) taxes are necessary. Period."