White House Hits Senate Unit’s Budget

The White House said today that the fiscal 1987 budget passed by the Senate Budget Committee “runs contrary to the best interests of the American people” because it trims $25 billion from President Reagan’s military spending plan and boosts taxes more than $18 billion.

Senate Majority Leader Bob Dole (R-Kan.) said he may delay full Senate action until after the Easter recess, a move that would give the President more time to lobby.

“I think we need to make certain where the Republicans are on the budget before we just toss it out here,” he said. Asked by reporters what he thinks of the spending plan, Dole said, “I think it keeps the process alive, barely.”

The Budget Committee, in a bipartisan 13-9 vote, Wednesday passed a spending plan that would meet next year’s deficit target of $144 billion without the deep cuts in domestic spending proposed by the President. (Story, Page 14.)

Domenici-Chiles Plan

The plan, put forward by Sens. Pete V. Domenici (R-N.M.), the committee chairman, and Lawton Chiles of Florida, the ranking Democrat on the committee, provides $295 billion in military spending authority for next year. Although that is 2.8% more than this year’s level, it would be $25 billion less than requested by the President.

For fiscal years 1988 and 1989, the resolution would allow defense spending to rise 1% above inflation, also below the President’s plans.

The committee voted to add $12.6 billion in taxes and other revenues to the $5.9 billion proposed by Reagan, suggesting the money come from “other than increased individual tax rates.”

Attacked by Speakes

The committee’s proposal was denounced today by White House spokesman Larry Speakes.

“The budget resolution voted out of the Senate Budget Committee yesterday calls for almost $75 billion in new taxes over the next three years, and that clearly runs contrary to the best interests of the American people,” Speakes said. “The President’s budget would reach the same level of deficit reduction, yet without a major tax hike or dangerous reductions in America’s defense budget.”

Speakes said the White House “will continue to work with the Congress to produce a budget that reflects those priorities.”