Washington — Reagan to consider defense cuts, tax hikes
Senate Republican leaders said Friday they have convinced President Reagan to ease his rigid stance against defense budget cuts and tax increases and consider a three-point plan to reduce the federal deficit. But they said the President still has not agreed just how to reduce the $305 billion defense budget he proposed.
Sen. Mark Hatfield (R) of Oregon told reporters after a one-hour White House meeting that Reagan ''accepted in principle'' a plan that would reduce the deficit $150 billion over three years by raising taxes, reducing the defense budget, and cutting spending for social programs.
Another meeting was set for early this week.