‘Super Summit’ Called to Tackle Budget Crisis : Economy: Eight White House and congressional negotiators will try to break the deadlock on spending cuts. Some agreement on taxes seen.

Deadlocked despite months of negotiations aimed at a $500-billion deficit-reduction agreement, White House officials and congressional leaders agreed Tuesday to convene an eight-man “super summit” to try to break the stalemate before massive spending cuts strike on Oct. 1.

Democrats and Republicans blamed each other for the impasse. President Bush, flying off to make campaign speeches for GOP candidates in Colorado and California, said that he could not predict what would happen next in the talks, which have dragged on since May 15.

“I think everybody, they tell me, agrees that they’ve come quite a way, but it’s not done by a long shot,” Bush said about the budget negotiations. “Well, just let them hammer it out.”

Documents obtained by The Times indicate that negotiators tentatively have agreed on $59 billion in tax increases on luxury goods, cigarettes, liquor, beer and wine, insurance companies and airline passengers between now and 1995. If the proposals become final, the tax on cigarettes would rise by 4 cents a pack in 1991 and again in 1992.

Under the tentative agreement, a 10% luxury tax would be imposed on buyers of all private planes as well as cars and boats selling for more than $30,000. The tax, which also would be assessed on jewelry worth more than $5,000, electronic goods worth more than $1,000 and furs costing $500 or more, would be 10% of the price above the threshold figures.

Taxes on distilled spirits, beer and wine would be raised by a total of $13.6 billion over the next five years under the tentative accords. A $100-million annual tax would be levied on production of ozone-depleting chemicals. Corporations would not be able to deduct interest on money borrowed to pay taxes, generating an extra $4.5 billion in revenue between now and 1995.

But the two sides remained far apart on Democratic proposals for a stiff energy tax, a 20% surtax on families with yearly incomes above $200,000, and tax breaks that would benefit working families and people in lower tax brackets. Republicans want tax cuts for investors, enterprise zones, oil drillers and family savings accounts, while proposing to end the deduction of state and local income taxes for upper-income taxpayers.

Without an agreement or an unexpected relaxation in the Gramm-Rudman deficit-reduction law, about $100 billion in spending cuts would be triggered Oct. 1, forcing large furloughs of government workers, major reductions in some federal programs and severe cuts in the military budget.

The two sides disagreed over whether the President’s repeated demand for a sharp cut in the tax on capital gains--profits from the sale of stocks, bonds and other assets--is the chief stumbling block to an accord.

Leading Democrats said that Bush’s insistence on reducing capital gains taxes would result in windfall benefits for the very rich without offsetting tax increases to make the entire package equitable for middle-income and lower-income Americans.

Bush, at a Republican fund-raising lunch in Denver, denied that capital gains tax cuts would be a “tax break for the rich.” He characterized the proposal as needed to “spur savings, encourage investment, expand jobs . . . and increase competitiveness.”

House Speaker Thomas S. Foley (D-Wash.), breaking his customary silence on details of the bargaining, said that the central problem is Bush’s determination to get a capital gains tax cut in the package.

“The Administration wants to hand (wealthy Americans) a major tax reduction and at the same time have no effective offsetting contribution from them in the deficit reduction effort, and that, I think, is unjustifiable,” Foley said.

House Minority Whip Newt Gingrich (R-Ga.), however, said that other issues besides capital gains continue to stand in the way of an accord. Gingrich termed the Democratic complaints “absolute baloney.”

“I’d love to take the capital gains issue to the country,” said one Midwestern Democrat, sensing political advantage in his party’s position that Republicans favor tax breaks for the well-to-do.

In their latest proposal, presented Monday night, Democrats said that they had made a major concession by withdrawing earlier proposals for $45 billion in new spending over the next five years and advocating only $5 billion in additional outlays in fiscal 1992.

Even so, the talks broke off without accord, and Senate Minority Leader Bob Dole (R-Kan.) said that it would take a “miracle” for the negotiators to conclude a budget agreement in the three weeks remaining in this session of Congress.

Foley and the top Democratic and Republican leaders from each chamber met for an hour Tuesday with the Bush Administration negotiating team--White House Chief of Staff John H. Sununu, Budget Director Richard G. Darman and Treasury Secretary Nicholas F. Brady.

Afterward, House Majority Leader Richard A. Gephardt (D-Mo.) and his GOP counterpart, Rep. Robert H. Michel (R-Ill.), announced that eight key participants would make renewed efforts toward a compromise in meetings at the Capitol after the end of bargaining at secluded Andrews Air Force Base in nearby Maryland.

“The talks have not collapsed,” Gephardt said. “They have moved to a different stage.”

The session today will include Foley, Gephardt and Michel from the House; Dole and Senate Majority Leader George J. Mitchell (D-Me.) from the Senate and the three Administration officials. Left off at the new stage are such contentious participants as Gingrich and Sen. Robert C. Byrd (D-W.Va.), chairman of the Senate Appropriations Committee.

In addition, congressional sources said that the Senate and House participants who are taking part in this stage of the negotiations are more compromise-minded than some of those who participated in the Andrews talks.