The Nation - News from Oct. 8, 1989

Senate Democratic and Republican leaders rejected each others’ proposals for handling a required deficit reduction bill and the capital gains tax issue and scheduled more talks for today. “It may not be possible to reach agreement,” Senate Democratic leader George J. Mitchell of Maine said after the negotiating session. Senate Republican leader Bob Dole of Kansas said that when talks resume, “we’re going to give them (Democrats) an offer and, hopefully, they’re going to give us a counteroffer.” The Senate Finance Committee has passed a deficit reduction bill but has rejected a capital gains cut, backed by Republicans and the President, in favor of Texas Democrat Lloyd Bentsen’s plan to expand tax deductions for individual retirement accounts. Senate Democrats want to block the capital gains cut from becoming part of the Senate deficit reduction bill, and Republicans are struggling to make sure the Senate gets to vote on the proposed tax cut.