Wants to Avoid Dragging Elderly Into Poverty : Dole Seeks Ways to Trim Benefit Hikes

Senate Majority Leader Robert J. Dole said Saturday that he is seeking ways to reduce Social Security cost-of-living increases without dragging millions of elderly Americans into poverty.

Dole also ruled out a tax increase this year as a way to lower huge budget deficits.

In an interview with wire service reporters, the Kansas Republican said there is a “zero” chance that Congress will raise taxes to lower federal revenue shortfalls, estimated by the White House at $218 billion in 1985 and $225 billion in 1986.

Dole said Senate Republicans must be “out front” of any effort to tinker with the Social Security cost-of-living adjustments but warned he will not “walk into a bear trap” that would allow Democrats to escape responsibility.

He said any change in Social Security would need eventual Democratic support because “we don’t want to repeat what happened in 1982,” when Republicans proposed reductions in cost-of-living adjustments and were vilified in subsequent election campaigns.

“I haven’t said we’re going to do it,” Dole added. He promised that “basic benefits will not be touched.”

Dole said the federal budget for fiscal 1986 “can be voted fairly early--maybe in February.” He said a “big chunk, $40 billion to $50 billion,” would have to be saved in the first year of the deficit-reduction effort.

“I’ve got to believe the Democrats can’t take a walk on this,” he said.

Dole acknowledged he was sensitive about studies showing that millions of Americans would become poverty statistics if the Social Security COLA, or cost-of-living adjustment, is frozen. He said several options are under study.

“You can make certain nobody is dragged below the poverty line,” he said. “You don’t have to take it away from everyone, or you don’t have to take it all away. But if you do nothing, then how do you treat the next group differently?”

Dole also:

--Predicted an arms reduction agreement is unlikely during the next two years, and said Congress should not scuttle the MX missile because such a move would “make it more difficult for our side.”

--Said he expects Edwin Meese III to be confirmed as attorney general and believes the hearings will be finished within four days.

--Warned that farmers in his and other states will “have to take our lumps like everyone else” in the budget-reduction effort despite a growing number of farm and rural bank failures.