Washington — Down payment on the deficit is signed into law by Reagan
President Reagan signed a deficit-reduction bill Wednesday providing for $50 billion in new tax revenues and $13 billion in domestic spending cuts over the next three years.
The legislation is the first step in attempts to cut federal deficits by $150 billion through 1987. Deficits were projected to reach $200 billion annually by that time.
About $6.8 billion of the spending cuts were made in medicaid programs for the elderly poor.
The tax portion of the bill closes several loopholes and delays some tax breaks scheduled to take effect next year.