Deep Cuts in Defense Budget Seen : Senate Republicans May Eliminate B--1, Simpson Predicts

President Reagan will be forced by Congress to accept deep cuts in his defense budget--possibly including the elimination of the B-1 bomber, Assistant Senate Majority Leader Alan K. Simpson (R-Wyo.) predicted Wednesday.

Simpson said the spending plan being drafted by the Senate Republican leadership will strive to trim at least $20 billion from next year’s federal deficit by freezing defense spending at 1985 levels and eliminating some weapons systems. The overall goal of the GOP plan is to save $50 billion in fiscal 1986, which begins Oct. 1.

Simpson’s remarks, made in a breakfast interview, reflected a growing revolt among Republicans as well as Democrats in Congress against Reagan’s continuing military buildup. He predicted that the GOP plan, to be unveiled Feb. 1, would have bipartisan support from a majority of senators and ultimately would be accepted by the House.

‘Outside Influences’

The President has said that he would oppose any cuts in defense spending next year beyond the $8 billion already trimmed voluntarily by the Defense Department. Reagan told a nationally televised news conference last week that the need for increased defense spending is “dictated by outside influences--things outside our country.”

But Simpson predicted that the President would accept additional defense cuts if enacted by Congress. “He’s pragmatic,” the senator said, referring to Reagan. “I just think if we put it in the package and there were further cuts--which there will be--I don’t think he would veto it.”

Simpson said the proposed defense budget to be drafted by the Senate leadership probably will include the elimination of some weapons systems. He said GOP leaders have “talked about almost everything” when discussing what systems could be eliminated, but the only potential target that he mentioned specifically was the B-1 bomber.

Arms Talks a Factor

Although many senators also have advocated eliminating the MX missile, Simpson indicated that he did not agree. And House Minority Leader Robert H. Michel (R-Ill.) said Wednesday that he hopes to negotiate a deal whereby Republican members of Congress would pledge continued support for funding of the MX in exchange for Administration support of cuts in the Pentagon budget.

Senate Republicans want to preserve any weapons system that is essential to a strong U.S. position in coming arms control talks with the Soviet Union and will seek the advice of Secretary of State George P. Shultz on the subject, Simpson said.

Defense Secretary Caspar W. Weinberger, who is expected to strongly resist any attempts at trimming the Pentagon budget, was described by Simpson as “wily” and “agile” in maintaining defense spending.

“He’s awesome,” Simpson said. “I think of him as a guy you tell to walk the plank. You see him out there, and all of a sudden in a very agile move he’s under the plank . . . and he’s on the ship again.”

As an example, he said Sen. John H. Chafee (R-R.I.), who was secretary of the Navy under President Richard M. Nixon, recently discovered during a review of Administration budget documents that Weinberger had awarded many defense contracts immediately after the Nov. 6 election in hopes of getting the jump on congressional budget cutters.

Simpson predicted that the Pentagon would argue against canceling any of these contracts on grounds that the financial penalties would be too stiff. He said he had compiled a list of such contracts that he hopes to see canceled.

In addition, he said, the Pentagon uses such “weird bookkeeping” so that even under a congressionally mandated freeze, defense spending would continue to rise by $20 billion in fiscal 1986 because of previous commitments by Congress to spending programs.

Pentagon spokesman Michael I. Burch later took exception to Simpson’s remarks, saying: “There is no ‘bookkeeping gimmickry,’ no matter how you figure it.”

No Tax Increase Seen

Simpson said he accepts Reagan’s pledge to veto any attempt by Congress to trim the deficit by raising taxes. “This President isn’t going to have one darn thing to do with any kind of revenue enhancement or taxes,” he declared.

Bob Packwood (R-Ore.), chairman of the Senate Budget Committee, said Wednesday that Congress probably will not pass a tax increase this year, though he added that it would probably raise some fees to increase revenues. Specifically, he predicted that Congress would halt a scheduled Oct. 1 reduction in the federal cigarette tax from 16 cents to 8 cents a pack.

Senate Republicans, led by Majority Leader Robert J. Dole of Kansas, began drafting their own budget plan recently after Reagan announced that his budget for fiscal 1986 would not freeze defense spending or Social Security benefits.

‘Where the Money Is’

But Simpson said the GOP plan would rely heavily on defense cuts and a freeze in Social Security benefits because “that’s where the money is.” Congress could save $7 billion to $10 billion by freezing Social Security benefits, he estimated.

Although the President has strongly resisted any freeze in Social Security benefits, he indicated last week that he would accept the freeze if it were forced upon him by Congress.