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Budget Conferees Resume

United Press International

Senate leaders called House conferees back to budget negotiations today after House Speaker Thomas P. (Tip) O’Neill Jr. said he would accept higher defense spending if a freeze on Social Security cost-of-living payments was dropped.

Senate leaders would not say whether they would scrap their plans for a controversial Social Security freeze. But Senate Republican leader Bob Dole suggested several ideas were being considered as alternatives--including higher taxes on Social Security payments for the wealthy and bringing all state and local employees under the Social Security system.


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