Senate OKs Bill to Trim Budget Deficit by $26 Billion in 1988
The Senate today passed a bill that would cut the federal budget deficit by about $26 billion in fiscal 1988 through spending cuts, tax increases and other revenue moves.
The deficit package, approved on a voice vote after 14 hours of debate, would raise $9.07 billion in taxes, mainly through new accounting rules for corporations, and cut about $13.5 billion in spending.
Another $2 billion in revenues would come from improved tax collection by beefing up Internal Revenue Service enforcement efforts and user fees charged for government services.
The spending reductions touch a wide range of programs including the Medicare and Medicaid health services for the elderly, farm price supports and the funding of the nation’s postal service.
The bill also projects savings of $1.3 billion from reduced interest payments on the federal debt.
The Senate measure also includes $14 billion in new taxes in fiscal 1989.
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