Congress Leaders Push Tax Hikes

Democratic and Republican leaders in the House struggled today to persuade their members to vote for large tax increases, little more than one week before congressional elections.

The taxes are part of a five-year, $500-billion deficit reduction package that was expected to come to the House floor late today or early Saturday.

The package, which is aimed at cutting $40 billion from the deficit this year, encountered last-minute disagreements between Democrats and Republicans over increases in costs for Medicare health insurance and several other issues.

“We’re not there yet, but I believe we will be able to reach agreement,” Senate Majority Leader George J. Mitchell (D-Me.) said.

House Democratic Caucus Chairman Steny Hoyer of Maryland said Democrats could not push the budget through on their own and were counting on help from the Republicans.

“I think it is close,” he said.

Some congressional sources warned that if the final agreement does not reach the floor by late today, the precarious majority being assembled in the House might begin to fall apart.

This would be a major blow for both Congress and President Bush and plunge the entire budget negotiations into disarray.