Prospects for Tax Reform and Dow Jones Averages Jude Wanniski February 18, 1984

12/14/83  Down 9.24 Adm. Holds out possibility of tax boost after '84.

12/15/83 Down 8.86 Contingency tax reported to be in FY '85 budget.

12/21/83 Up 13.01 Regan rejects raising taxes to reduce federal budget deficit.

12/27/83 Up 13.21 FOMC Nov. minutes released indicating Fed didn't seek tightening.

1/4/84  Up 16.31 Dole, Domenici, H.Baker unsuccessful in getting Pres. To use tax increase to reduce federal budget deficit.

1/5/84  Up 13.91 Feldstein failing in effort to sell $50b tax boost to administration.

1/10/84 Down 7.74 Dole and Feldstein intensifying efforts to secure tax increases to reduce federal budget deficits.

1/13/84 Down 9.21  Preliminary figures on Reagan's spending cuts leak out after briefing by Stockman. Called "pathetic" and insufficient to reduce budget deficit without tax boost.

1/23/84  Down 14.66  Dole's "down payment" plan seen as being accepted.

1/15/84  Down 10.99 Rumor Reagan won't seek re-election. Dole "tremendously pleased" with acceptance of "down payment" plan.

1/30/84 Down 8.48 M1 reported as re-emerging as official target for basic money supply.

2/3/84  Down 16.85 Fed released Dec. FOMC minutes: "economic expansion and spreading optimism….argued against any easing."

2/6/84  Down 22.72 Volcker calls for reduction of federal budget deficits, announces no Fed easing for the year.

2/8/84  Down 24.19 Volcker says deficit must be cut before interest rates can fall, warning of another recession.

2/15/84  Up 13.71 Pres. says high interest rates, not deficit, hurting stock market. Treasury announces tax code overhaul will not be tied to efforts to narrow federal budget deficit. Regan advises Fed its tight money policy adversely affecting economy.