Joint Panel OKs Budget Compromise : White House Says $1-Trillion Version Is ‘Pickpocket’ Plan

A House-Senate committee approved a compromise $1-trillion budget proposal today, setting up a confrontation with President Reagan over what the White House called “pickpocket” tax provisions and inadequate defense spending.

The required majority of committee members signed the panel’s report in favor of the package, which now goes to the House and Senate for final approval.

The measure calls for more than $19 billion in new taxes in fiscal 1988. It would increase defense spending to $296 billion, cut domestic programs by $18 billion and trim $37 billion from the federal deficit.

No Veto Power

Reagan has no authority to sign or veto the budget resolution, which serves as a blueprint for government spending. But he has vowed to oppose any related legislation that would raise taxes or weaken defense programs.

Even before the committee ended its morning meeting, the White House had denounced the proposal.

“The Democrats ingeniously refer to tax increases as deficit reductions--a pickpocket way to lift your wallet to pay for your dinner,” said White House spokesman Marlin Fitzwater.

He said Reagan, who has criticized the Democrat-controlled congressional budget committees throughout the budget-writing process, “isn’t buying” the final plan “and neither are the American people.”

But Chairman Lawton Chiles (D-Fla.) of the Senate Budget Committee said the new compromise proves “we obviously know we have a responsibility to govern.”

‘Easy to Be a Critic’

“It’s always easy to be a critic and to put your foot down and say no,” Chiles said, referring to consistent criticism not only from the White House but also from congressional Republicans.

That criticism continued during today’s two-hour committee meeting as GOP members complained about the spending proposal and the methods used to draft it.

“Democrats would rather soak the public than cut the deficit by reducing or eliminating unnecessary government spending,” said Rep. Delbert L. Latta of Ohio, ranking Republican on the House Budget Committee.

“I believe the American people . . . want us to spend more money--not less--on certain domestic programs,” said Sen. Pete V. Domenici of New Mexico, ranking Republican on the Senate panel. “But I believe it is conclusive that they also believe we ought to cut some other areas to do that.”

The compromise calls for about $65 billion in new taxes over the next three years. The budget proposal does not specify exactly how the money would be raised, leaving that task to other congressional committees.