Senate GOP Agrees to Freeze Social Security Benefit Rise

Senate Republican leader Robert J. Dole today said GOP senators have agreed informally to freeze Social Security cost-of-living increases as part of their package to reduce the budget deficit.

The Republicans are working on a budget independently of President Reagan, who, in line with campaign promises, did not touch Social Security in his fiscal 1986 budget. Reagan and the Senate GOP leaders would like to cut $50 billion from anticipated deficits, but with different formulas.

“We’ve already addressed this in the Senate Finance Committee on the Republican side and we’ve agreed to put the (Social Security cost-of-living) change in our package,” Dole told a breakfast meeting of the American Bankers Assn. “Unless it becomes a politicized polarized issue, we will address it.”

Many Republican senators have been calling for a freeze on Social Security cost-of-living hikes along with a halt in all other government-funded cost-of-living raises. Democrats, however, insist that they will help Reagan keep his promise not to tamper with Social Security.

Dole said the way to persuade Reagan to go along is with a “bipartisan group willing to make that change,” and predicted that Democrats will assist.

Criticism for Reagan

Dole criticized Reagan for not paying more attention to his own budget, and its $180-billion deficit, in his State of the Union Address on Wednesday night. But he said he understood that “when you’ve got something you’re not particularly proud of, you don’t raise that as the centerpiece of your speech.”

Later, Dole told reporters that Reagan’s advocacy of tax simplification has put the issue “back on the front burner” but said he isn’t “sure if the burner was turned on” in Congress.”

“Now we just need to light a fire under it,” the Kansas Republican said at a news conference. “The President indicated he has a lot of work to do--and he’s right.”

Sen. Bob Packwood (R-Ore.), chairman of the Senate Finance Committee that would have to pass any bill, told reporters separately that Reagan is likely to win congressional approval of up to 85% of the Treasury Department’s tax-overhaul plan--if he pushes for it.

‘Good Chance’ of Tax Plan

“He has a very good chance of getting it” if Reagan goes all-out to sell whatever tax plan he endorses, Packwood said.

Reagan endorsed the broad goals of simplicity and fairness in the tax laws in his address Wednesday night--without telling Congress which parts of the Treasury’s plan he likes and which parts he opposes.

At the White House today, presidential spokesman Larry Speakes said, “The President regards tax reform with equal priority to deficit reduction.”

“We will be pushing it,” he added of a tax bill.

No Guarantee

Dole said that Reagan’s support for the concept does not guarantee passage of a tax bill by any means.

“That’s just getting it back on the stove,” Dole said.

Dole also said Reagan might well succeed in some of the proposals made in his speech.

The majority leader said Reagan’s call for “enterprise zones” would be “easy to pass” in the Senate. A balanced budget amendment “we could pass,” Dole added, and the line-item veto was a possibility.

But Dole said Reagan’s proposals for tuition tax credits face a “very difficult” time on Capitol Hill and that anti-abortion legislation “probably” would not pass.