Senate Plan Doubles Tax on Gasoline : Deficit-Cutting Bill Differs Sharply From One in House

The Senate began work today on a bipartisan deficit-reduction bill that doubles gasoline taxes and differs sharply from a House-approved hit-the-rich version opposed by President Bush.

The White House, meanwhile, reiterated that Bush would sign an order to continue spending for government services if Congress approves a deficit-reduction plan by Friday.

“If there was a deadline extension that carried with it a really significant reduction of the deficit . . . to show Congress meant business about it, I’m sure the President would consider that as a good-faith extension,” said Bush’s spokesman, Marlin Fitzwater.

But, Fitzwater said, the extension “can’t continue current spending levels without any effort to reduce the deficit, even for a couple of days.”

Without some action by midnight Friday, all but essential government employees could be sent home.

The government was shut down during the three-day Columbus Day holiday weekend earlier this month, but Bush signed a congressional resolution that allowed workers to return after the holiday.

The bill before the Senate differs sharply from a House approved tax-the-rich version.

“This requires moderate sacrifice for all Americans,” Sen. James Sasser (D-Tenn.), chairman of the Budget Committee, said of the Senate plan. “It exempts no citizen. . . . It is sound, sensible and supportable.”

The Senate bill, unlike the House plan, would not tamper with income tax rates. However, it would raise the 9-cent gasoline tax by 9 1/2 cents, limit itemized deductions of people with incomes over $100,000 and raise some Medicare premiums slightly more than the House approved.

Sasser sounded the same theme that marked a long, partisan debate in the House on Tuesday: The well-to-do gained most from government policies in the 1980s and should be required to pay more to reduce the deficit.

Other Democratic senators were writing amendments that would make the wealthy do even more, trying to make the Senate bill look more like the House plan and hoping to bring Bush along by tacking on part of his long-sought cut in capital-gains taxes.