European Stars And Stripes (Newspaper) - November 3, 1987, Darmstadt, Hesse                                Tuesday november 3,1987 the stars and stripes paga3 social Security Cap reportedly discussed White House denies any action considered Washington a while House and congressional budget negotiators struggling to find ways to reduce the Federal deficit have discussed placing a Cap on Cost of living increases in All entitlement programs reportedly including social Security. However House majority Leader Thomas s. Foley and president Reagan s spokesman denied monday that social Security was being considered for budget cuts As White House and congressional negotiators seek ways to reduce he Federal deficit. No one is proposing social Security reduction said Foley d-Wash., who is chairman of the negotiations. Social Security was taken off the Lable by Rea Gan and i believe it will stay off the table he said. While House spokesman Hurlin Fiu water. While saying he would not get into specifics reiterated that everything is on the table except social  discussions have included putting a 2 percent Cap on the Cost of living increases scheduled for Jan i in entitlement programs including veterans pensions the sources said those boosts otherwise would be about twice that much. Lawmakers said last week hey were looking at cos savings in programs such As medicare that could in done by limiting the inflation increases due to the hospitals and doctors providing the services. The negotiators also discussed limiting the indexing of Federal income taxes to inflation that is scheduled to become effective in fiscal 19 9, beginning oct. 1, 1988, the Washington Post reported in its monday editions. Under such a plan the adjustment of individual income a brackets and deductions would be reduced by 2 percentage Points the newspaper said. The government would save $5 billion in fiscal 1988, which began this past oct. I by cutting the Cost of living adjustment for Federal retirement benefits including social Security the Post said. The limit on income tax indexing would yield about 14 billion in Revenue in fiscal 1989, but nothing until then the newspaper said. The talks Are being held behind closed doors and social Security Cost of Ming benefits increases tied to inflation 1976 80 82 84 86 Chicago Tribune Chart source social Security administration participants have agreed among themselves not to Dis cuss specifics. They began their second week monday. A Republican senator involved in the budget negotiations said sunday that the Reagan administration May consider an increase in taxes if Congress willingly agrees to substantial spending cuts Over a two year period. They Aren t going to negotiate on taxes unless we arc really willing to have some two year spending cuts that arc for real credible said sen. Pete Dominici if new Mexico the ranking Republican on the Senate budget committee. You have to go o programs like farm support like medicare. And Many of the Ether programs that have grown a Alicr broadly he wid on lbs to s face the  you can t just get i t in the area it s got to be  Domenici one of More than a dozen congressional leaders involved in discussions with the White House said there had been no agreements As of sunday to Cut the entitlement programs. But essentially. We Sre looking he said. We have left the discretionary appropriated accounts which is essentially military and this Small portion of the Bud gel $12.5 billion to $13 billion that you appropriate every year. We re actin eng to reach an Accord on that. We re now going below that and talking about some of these other savings thai. We am get below thai  president Reagan in his weekly radio address Sal urday took a More conciliatory tone on the budget talks than he had previously never mentioning his often stated opposition to tax increases. He called on Congress to join him in a Long Range Effort to balance the budget. When we Cut spending it must slay Cut Reagan said. No coming Back next year with new programs or replacing old reductions with new increases. From now on deficit cuts like diamonds will be forever Dominici said the Budge negotiators have been making Progress and expected cuts of More than the $23 billion required by the Gramm Rudman Law. We will get More than $23 billion it would be two years and it would be credible he said. I won t be surprised that it would be As High As $30 billion and More than $30 billion in the next year. Capital s elite shrug off Stock losses Washington a like Many Oiher americans members of washing ton s Power elite have suffered some humbling Stock Market losses in recent Days but they seem to be responding with a fatalistic shrug or a fearful reluctance to Telephone their brokers for the bad news. My feeling is if it s gone it s gone and that s the Way in goes said Heather Foley wife of House majority Leader Thomas s. Totcy a Wash. The fotes Are Small investors dealing mostly in Over the counter stocks and Are leaving decisions about their modest portfolio entirely to a trotted investment Counselor. Neither in fact has bothered o Call him since the Stock Market col lapsed on oct. 19. Others profess not to be alarmed by the Stock Market s wild ups and Downs since Black monday two weeks ago when the Dow Jones Industrial average Tell a record 508 Points. One such sanguine investor is rep. Bill Green d-n.v., who is one of the wealthiest members of the House with assets of perhaps Well mat $12 million last year. His broker ii his sister Cynthia Colin a vice president of Shearson leh Man Bros in new York. My stocks went Down like everyone else a out i m not worried Green said. He explained that i m not borrowing on margin meaning that he has not bought stocks on credit from Bis broker and thus does not face the possibility of sudden Calls Tor Cash to cover plummet ing Slock values. Another millionaire legislator who is calmly Riding out the storm is freshman rep. Amory Houghton r-n.y., former Board chairman of coming Glass works. Coming s Slock plunged Lvi Points to close at 42 on Black monday. Former rep. Wilbur Mills has nothing to worry  sen. William Proxmire thinks it s a Crapshoot rep. Roy Dyson afraid to Coll his broker. I have a big stake in Corning he said. I m holding it and will always hold in. It s 8 great company on the verge of doing great  several of the Senate s famous millionaires including Edward m. Kennedy a maw. John d. Rockefeller in d , John Heinz a a and John Dan Fonh. A to have no idea How bad a beating their a Tensive Stock holdings have taken in the past two weeks. Thai s because their stocks were placed years ago in a Blind Trust to shield the senators from potential conflicts of interest in considering legislation that might affect businesses in which they have a financial interest. The stocks Are managed by trustees whose decisions Are unknown to the senators. Rep. Roy Dyson d-md., says he has heard some Gallows humor from his col league about being wiped out financially in the Wall Street tailspin. But i Don t Sec anyone jumping off the dome of thu  As for himself Dyson said "1 Haven t called my broker to see if won or lost. I m afraid to. But. Yea can is absolutely nothing about  same of the happiest washing ionians Are those who pulled out of the Stock Market Early and Are watching the cur rent turmoil from the sidelines. I be never had Slock holdings said sen. William Proxmire d-wis., chair Man of the Senate banking committee who it retiring this year. I be stayed out of it. It s a Era shool. I Don t have much Money anyway and i m just As Happy that  sen. Richard c Shelby. D-ala., who listed his 1986 assets at More than $1.9 million says he sold All Hii holdings in april because the Market seemed Over priced. He says the Market will Correct itself and he probably will invest again when things Settle Down. I Don i have anything to worry about said former rep. Wilbur mini d-ark., a Washington lawyer tax consultant and once powerful chairman of the Tan writing House ways and Means committee. Mills said he look his Money out of the Stock Market years ago and invested instead in government Bonds. A spokesman for Washington s mayor Marion Barry said the Slock markers woes Don t seem to be affecting him one Way or the