Democrats Suggest Budget ‘Compromises’

WASHINGTON —  Senior House Democrats today indicated a willingness to negotiate a deficit-reduction plan that includes some increase in the gasoline tax, but insisted that President Bush must accept a higher burden on the rich.

“Obviously, compromises are required,” House Speaker Thomas S. Foley (D-Wash.) told reporters after a party caucus. “The insistence of the President in having no income tax changes (affecting the rich) seems to be inexplicable and inflexible.”

At the White House, Bush said the Senate bill “offers some real hope for getting the budget deficit matter under control,” but would not discuss what he believes the final version should contain.

The Senate, meanwhile, approved a bill to extend temporary funding for government operations past tonight’s midnight deadline, and White House press secretary Marlin Fitzwater indicated that Bush intends to sign it.

Bush, Fitzwater said, wants to satisfy himself “that satisfactory progress is being made” on the budget before signing the measure.

Foley said Democrats will insist that House and Senate negotiators moderate a Senate proposal to increase the gasoline tax by 9 1/2 cents and raise Medicare premiums.

The conferees began working on a compromise measure after the Senate passed its deficit plan on a 54-46 vote early this morning.

“One more big hurdle and then we’ll have the job done,” Majority Leader George J. Mitchell (D-Me.) said.

Congressional leaders had hoped to work out differences in time to get an agreement to Bush before midnight, but they indicated today that a final bill is unlikely before next week.

The House measure, vastly different from the Senate bill, would take three-fifths of its revenue from higher-income taxpayers. The Senate wants to raise money by increasing the tax on gasoline, alcohol, cigarettes and luxury items.