Pecos Enterprise in Pecos, Texas

Smaller tax cut seen by Congressional vote

Washington AP reports congressional negotiators begin reconciling Senate and House budgets with a smaller tax cut than Carter wants. The House approved a 201 line vote for a plan totaling 500.9 billion dollars, while the Senate plan sits at 498.9 billion. Net tax reduction stands at 19.4 billion versus Carter 24-25 billion. Conference gaps include defense and agriculture budgets, with deficits projected about 57.9 and 2.3 billion below Carter estimates respectively. Rep Giaimo notes conference will be tough while Rep Rhodes slams higher taxes and spending. Democrats seek reversal of a prior cut targeting HEW programs amid fraud findings.