Congress demonstrated political courage in passing an election-year tax increase totaling $98.3 billion over the next three years. Though controversial in many respects, the measure was widely-regarded as a key step toward economic recovery. -President Reagan backed the bill during weeks of intensive lobbying, especially within reluctant conservative ranks of the Republican Party. The victory once again attested to his own personal charisma and persuasive talents. Now, as members of the House and Senate visit constituencies in the long Labor Day recess, they should be mulling further cuts in federal spending to complement the tax boost. The goal, of course, is lower budget deficits, interest rates, inflation and unemployment. Actually the bulk of the increased receipts in the three-year planwill come from closing loopholes for businesses and individuals and tighteningl taxpayer compliance wit the aws. Reagan, in his effective address to the nation before the showdown in Conress, said about $32 bilEon of the extra revenue would be raised by collection of taxes owed now but which are not being paid. Another $48 bil ion, he said, “represents closing special interest loopholes which have resulted in unintended tax advantages for some.” These are matters of simple fairness. Just since the President’s address, a taxation study bty Tax Analysts, a non-pro it research organization, disclosed that 33 large corporations with earnings of $100 million or more paid no U. S. corporate taxes in 1981. Four of the firms had eamings of more than $500 million. The taxpayers are entitled to an explanation in such cases and assurance that steps are being taken to bring tax credits and other provisions into balance to insure that all share in fair proportion the burden of taxation. in the hard choice the election year tax hike placed before Congress, the House and Senate demonstrated a healthy biparatisan spirit that shou d be perpetuated in the ongoing drive to reduce budget deficits and strengthen the financial picture. As Reagan said, “It will take the best efforts of all of us to keep the American economy on the road to recovery.” The public is depending on that urgent endeavor. -30