U.S. SENATE, HOUSE BUDGET CHIEFS AGREE ON TAX
The chairmen of the House and Senate
Budget Committees are in general accord on the need to cut the
federal budget deficit by about 36 billion dlrs, half through
new revenues, congressional sources said.
    The sources told Reuters Senate Budget Committee Chairman
Lawton Chiles, a Florida Democrat, believes that it would be
necessary to raise "at least" 18 billion dlrs in higher
revenues--the same being proposed by House Budget Committee
Chairman William Gray, a Pennsylvania Democrat.
    The Senate committee will hold its first drafting session
on a budget tomorrow, the House group later in the week.
    Both sides want to meet a congressional target of April 15
for congressional approval of a new budget. However, the
Congressional Budget Office said that a deficit cut of 36
billion dlrs will fail to reach the Gramm-Rudman budget law
goal of a 108 billion dlr deficit and would fall 27 billion
dlrs short. 
    President Reagan's budget, not accepted by either
committee, proposed about 36 billion dlrs in deficit
reductions--including some 22 billion dlrs in new revenues
through asset sales and excise fees--off of an estimated
deficit base of 144 billion dlrs.
    Reagan said his budget hits the Gramm-Rudman goal for 1988
but the Congressional Budget Office said it is way off the mark
with over optimistic economic assumptions.
    Currently, there are discussions underway by House and
Senate committees to redefine the fixed Gramm-Rudman targets
for more realistic levels that can be reached, which would push
off by a year or two the 1991 goal for a balanced budget,
sources said.
 Reuter
