| Show 16A The Salt Lake Tribune Sunday September 2 1990 s TAR GAZEk'Af) Budget Cuts Aimed to Hit Medicare Hardest 1 both parties want to avoid Going into Friday's talks the critical decision that will determine how large many domestic cuts must be is whether negotiators delay for a year ing or less annual creases in Social Security and other government retirement benefits WASHINGTON (UPI) — While no decisions on domestic spending cuts have been made by the budget summit it appears after interviews with more than P dozen negotiators and key aides that Medicare will take the biggest hit of at least $3 billion And it appears total domestic spending cuts Icould range from $7 billion to $12 billion depending on the size of the deficit reduction plan adopted No matter the size of the package any cuts in federal benefit programs called entitlements will be tough for both parties "I think this is the one area that's driven more by politics than anything else because it is people-sensitiv- e It is hot buttons" said assistant House Democratic leader William Gray of Pennsylvania Farm programs such as crop insurance and subsidy payments also are expected to be cut up to $2 bil- 800-poun- MaMMIMMM Peace Dividend' Sailed Away With Troops to Saudi Arabia ering over the sticky issues of taxes and domestic spending cuts where the two parties remain more deeply divided "Clearly the Democrats wanted to have a meltdown in defense" a said Sen Phil Gramm budget negotiator "The Middle East makes the kind of defense savings the Democrats had hoped for absolutely unachievable "The realistic savings prior to the Middle East was always the Nunn number" Gramm said "My guess is that you would have to reevaluate that in light of what has happened in the Middle East" He said he expects the Pentagon cut next year to fall between Nunn's $95 billion and the roughly $3 billion cut after inflation proposed in January by President Bush who before the Iraqi invasion had doubled his proposed cut to about $6 billion WASHINGTON (UPI) — Before Iraqi troops stormed into Kuwait defense cuts were perhaps the least controversial element of a deficit-reductio- $50-billio- n pack- n age being negotiated by the White House and Congress No more Before the Aug 2 invasion Republicans and Democrats had narrowed their differences on the size of future defense cuts according to interviews with more than a dozen congressional budget negotiators and key aides of both parties They said that before the invasion the GOP had embraced the $95 billion defense cut in fiscal year 1991 proposed by Senate Armed Service Committee Chairman Sam Nunn a Many other Democrats however ' wanted $2 billion to $4 billion more in Pentagon cuts next year Even so differences were seen as relatively narrow and easily resolved But now the partisan bickering surrounding possible defense cuts in the wake of the massive US military deployment in Saudi Arabia is again on a par with the bick- - lion "Agriculture has tri come down a fair amount" said Rep William a negotiator Frenzel Told other negotiators and aides thought agriculture cuts might total $1 billion next year Frenzel said "I think it's going to be more like $2 billion" Negotiators have given themselves an unofficial deadline of Sept 10 to cut the estimated fiscal year 1991 deficit of $169 billion by up to 00 billion next year and $500 billion over five years Due to the cost of the US military deployment in Saudi Arabia and the inflationary impact of higher oil package may be prices the first-yea- r trimmed to about $30 billion n Failure to implement a package by Oct 1 would trigger $105 billion in automatic spending cuts required by the Gramm-Rudma- n balanced-budge- t law —cuts deficit-reductio- I 1 ' --- - Assistant House Republican ' 11 o -- - -- 4AN sion has guaranteed defense 4" ' spending next year "substantially higher than the Democrats had hoped for" Ill ' e- L 1 ! i U I- - I 1a r I At : V Trt (roileo 9 - '' f '' ' iimmit j 4 B :: ' :L ii 1 l' D t T-- ' - 1 1r fkrvv a FC1" - 4656 44- teleM 0610-22-33-5- 22 AUG A r i?sAM :: 4Ci ::::: 'ii:i 4:Nt ': 1 it- P - "e-'"'' tilit- - - - - !' - a:k4- ---' t ' $289 P'i400N ' ' a 5 Twin Ea Pc Queen Set "' i i 129 $459 Set 0- CENTRE ' ': j - 5 Twin Ea Pc 000000000000000040 149 8499 Oseuteen me — he- Set I 1 7 6X i : - "Red-Ey- ' — - — Lkkk' A‘sibwuaut&ZofWksNrot-Zra- -- -- 8X Power Zoom Lens t 0: i9Efitit71E7fN : - 1"1)10 tSome restrictions may apply 8X i 111--- ' f SingleuFttrerarnste PmaottreSel v- - lam Ian 'ce 1 It 1 see store ftails ii 1 :1 taofir p:0 ' Ek:T :liy SI S' 1 gr'BZerat 'teollyD°"11 m:IL arEan cFb 1 Ts 11c -0- 11"1"N 0 Ntm 406 IT: - R 25:004 Fitz Alms ji A y ilkti:1- 16- 1 elling 44 39499 Jr4 '401 -- '4111 MO Illn NM On Ina A7:'::::- - - : c—rs-e77:--A-- GENESIS III i7N 1 Power Zoom Total Exposure Control Built-I- n Flash One-Han-d Operation i: : 7s7 ' 7! 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Your Daily Activity Guide V ANL 19 "- - ask the elderly to contribute to deficit reduction" Eliminating the COLA for a year would raise so much money — $9 billion in 1991 and $59 billion over five years — that it would reduce the pressure for deep Medicare cuts Lowering COLAs by 2 percent below the Consumer Price Index — the government inflation barometer to which annual adjustments are linked — would save $32 billion in 1991 and $62 billion over five years But most of those interviewed said they did not expect any COLA cuts "Social Security is the high voltage third rail of politics — you touch it and you die" said Frenzel But if you don't touch COLAs to save money he added "you're putting an awful lot of pressure on Medicare You're hitting the same I think that will elderly people be one of the big questions for the summitens Are you going to do COLAs or are you going to bomb Medi- Deciding whether to cut COLAs is d "the big gorilla behind the curtain" at the budget talks an aide to a Democratic negotiator said "Everything hinges on what they do with COLAs" the aide said "The question is whether you're going to POLLAN By CLAY R ARIES MAR 2? a 4 g APR on approved credit 18 11 ""leVIi 7 tiAft—fl i ti' -- a le I' Tri t All Sales Final during this sale !eff 4 lAWS rt ft 1100101 i nt::177 et No Dealers $4110:4 : rr 417'e 415'47-1fr7- t 1 - |