Reagan wary of deficits but wants no tax hike

President Reagan said that huge federal budget deficits could abort the economic recovery - but he rejected congressional pleas for higher taxes to stem the flow of red ink.

In a speech to the National Association of Homebuilders, the President was sharply critical of congressional failure to approve a budget resolution for the 1984 fiscal year. His statements were an indirect rebuttal to charges by Sen. Robert Dole (R) of Kansas and Rep. Richard Gephardt (D) of Missouri, who complained that Mr. Reagan had not been actively involved in efforts to write a 1984 budget. The President will hold a press conference tonight (Tuesday).