Budget Talks Are Seen Near A Compromise --- Package Under Discussion Covers Tax Deductions, Gains, Social Security
WASHINGTON -- Budget negotiators were approaching a compromise that would limit tax deductions for the rich and reduce the tax bite on capital gains less than President Bush was asking, people close to the talks said.</br></br>The package on the table as the talks continued last night also would tax more of Social Security benefits paid to middle- and upper-income elderly.</br></br>"We're awfully close to having an agreement in principle . . . which would require a White House foray" today to brief the president, a Republican staffer close to the talks said.</br></br>But Democratic aides cautioned that the negotiators -- five top congressional leaders and three Bush administration officials -- hadn't yet shaken hands on an agreement. "We're a long way from Tipperary," said one.</br></br>Moreover, Budget Director Richard Darman cautioned against too much optimism.