Vanderbilt Television News Archive

(Studio: Peter Jennings) Report introduced.

(DC: Sam Donaldson) Announcement of new budget agreement by Congress and President Reagan reported [REAGAN - says it's solid beginning.] [Representative Jim WRIGHT - says it's real set of reductions.] Plan outlined on screen and compared to automatic cuts of Gramm-Rudman law. [REAGAN - discusses tax increases] [WRIGHT - refuses pledge on taxes.] Issue of tax increase noted. [Representative Bob MICHEL - says selling job to come.] Problems defined as getting Congress to accept agreement and for stock market to see plan as important

(DC: Sheilah Kast) Expectations of new budget plan outlined: reduction of deficit by cuts in defense spending and domestic spending, but not Social Security; increase revenues through tax increase and sale of government property. [Representative Thomas FOLEY - calls agreement milestone toward reducing deficit.] [Senator Bob PACKWOOD, Representative Dan ROSTENKOWSKI - are unhappy with plan.] Impact of Gramm-Rudman cuts, said to go into effect because plan not completed, reported Farm price supports, student loans, Medicare said affected.