Possible budget deal lists spending cut, tax increase

The White House and congressional leaders are near a budget compromise that would scale down spending in all areas and raise $120 billion in new taxes over three years, the Wall Street Journal reported.

But sources close to the secret negotiations said the two key figures in the budget impasse - President Reagan and House Speaker Thomas P. O'Neill II - have not passed judgment on the plan and still could veto it, the Journal said.