European Stars And Stripes (Newspaper) - November 3, 1987, Darmstadt, Hesse                                Tuesday novembers. 1987 the 5tahs and stripes Page 3 Budge Teers discuss social Security Cap but lawmakers Hope to keep program intact Washington a while House and congressional budget negotiators struggling to find ways to reduce he Federal deficit have discussed placing a Cap on Cost of living increases in All entitlement programs including social Security. However several sources who on sunday con firmed the conversations said hey do not believe Shal the negotiators will touch social Security since president Reagan has expressly ruled that out and it is poli Ricilly too sensitive. They never would go for that said one source who spoke on condition of anonymity. At this Point it is an intellectual exercise said another who pointed out thai the talks were covering All possible areas of deficit reduction even if they might later be judged politically unacceptable. Discussions have included putting a 1 percent Cap on the Cost of living increases scheduled for Jan. 1 in social Security Al prop Ranit  iffy Rorr pensions the source said. Those boosts otherwise would be about twice that much lawmakers said last week they were looking at Cost savings in programs such As medicare. That could be done by limiting the inflation increases due to inc hospitals and doctors providing the services. The negotiators also discussed limiting the indexing of Federal income taxes o inflation that is scheduled to become effective in fiscal 1989, beginning oct. I 1988, he Washington Post reported in its monday editions. Under such a plan the adjustment of individual income tax 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. 1, by cutting the Cost of livid la adjustment Tor Federal retirement benefits including social Security the Post said. The limit on income tax indexing would yield about j4 billion in Revenue in fiscal 1989, but nothing until Hen the newspaper said the talks arc being held behind closed doom and Cost Ohi ving benefits increase tied to inflation 1876 78 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 inc 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 pc tied they Aren t going to negotiate on taxes unless we arc really willing to have some two year spending cuts that Are for real credible said sen. Pete Domenici or new Mexico the ranking Republican on the Senate budget committee. You have to go to programs like farm support like medicare and Many of the other programs that have grown rather broadly he said on lbs to s face the  you can t just get it in the area it s got to be  Domenici one of More than a dozen congressional leaders involved in discussions with the while House said there had been no agreements at of sunday to Cut the entitlement programs. But essentially we Are looking he said. We have left the discretionary appropriated accounts which is essentially military and this Small portion of the Bud gel 112,5 billion to 111 billion that you appropriate every year. We re beginning to reach an Accord on that. We re now going below Tinl and talking about some of these oth a savings that. We can get below that  president Reagan in his weekly radio address sat urday took a More conciliatory tone on the budget talks than he had previously. He called on Congress to join him in a Long Range Effort to balance the budget. When we Cut spending it must stay 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  Domenici said the budget negotiators have been making Progress and expected cuts of More than the $2.1 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 rare than $30 billion in the next year. Ital s elite shrug off Stock losses washing Tufa like Many other americans imn Bers of washing Ion s Power elite a fuffered Tome humbling Nock Marken figs in recent Days but they seem to be with a fatalistic shrug or a be Armouc Tance to Telephone their broker. I bad news. My feeling is if it s gone a s gone and that s the Way it goes a Heather Foley wife or House majority Leader Thomas s. Foley a Wash. The Foley Are Small investors Deal ing mostly in Over the counter stocks and Are leaving decisions about their modest portfolio entirely to a trusted in vestment Counselor. Neither in fact has bothered to Call him since the Stock mar Ket collapsed on oct. 19. It s like if you re afraid you be got cancer you d prefer not to know mrs. Foley said. Others profess not to be alarmed by the Slock Market s wild ups and Downs since Black monday two weeks ago when the Dow Jones indu uial average Felt a record sos Points. One such sanguine investor is rep. Bill Green d-n.y., who is one of the wealthiest members of the House assets of perhaps Well Over $12 last year. Hii broker is his piste Thia Colin a vice president of Hearson Lehman Bros in new Yort. My stocks went Dow Ike everyone else a but i m not worked Green said. He explained that to not borrowing on margin meaning that he has not bought stocks a credit from his broker and thus do Eliot face the possibility of sudden Caj for Cash to cover Plum Mcl 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. Sen. Former rep. Wilbur Mills has nothing to worry  proxy up. Roy Dyson afraid to Call coming s Stock plunged 18 i Points to close at 42 on Black monday. I have a big stake in coming he said. A m holding it and will always hold it. It s a Greal company on the verge of doing great  several of the Senate s famous millionaires including Edward m. Kennedy a mass. John d. Rockefeller in . John Heinz r-pa., and John Danforth r-mo., have no idea How bad a beating their extensive Stock holdings have taken in the past two weeks. That s because their stocks were placed years ago in a Blind Trust to shield the senators from potential conflicts of interest in considering legislation thai might affect businesses in which they have a financial interest. The stocks Are managed by trustees whose decisions Are unknown to the senators. Also in the dark about the Fate of his Slock holdings held totally in a Blind Trust is David s. Ruder chairman of the securities and Exchange commission whose Agency regulates and supervises the nation s stuck exchanges and invest ment brokers. Rep. Roy Dyson d-md., says he nil heard some Gallows humor Iron leagues about being wiped i Man Cia by in the Wall  nit i Don t see anyone Jah a the dome of the Capitol. Lim self Dyson said i Haven t my broker to see if 1 won or lost i m afraid to. But. You can a absolutely nothing about  some of the happiest washingtonians 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 sad sen. William Proxmire d-wis., chair Man of the Senate banking committee who is retiring Iii year. I be stayed out of it. It s a Crapshoot. 1 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 ji.9 million says he sold All his 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 t have anything id worry about said former rep. Wilbur Mills -ark., a Washington lawyer lax Consul a and once powerful chairman of the tiling House ways and Means con Mills a Kie took his Money Oul of the Stock Maul years ago and in vested  Bonds. "1 did t have tire a mass i h he said. A spokesman for a Shufu s mayor Marion Barry said the Sto Murket s woes Don t seem to be affecting Way or the  he said Barry is concerned about the Impact of congressional spending cuts on the District of Columbia s budget