Hollings budget plan rejected by Senate

The Senate overwhelmingly rejected a proposal to freeze most federal spending at current levels for the next three years and to repeal the July 1 income tax cut and tax indexing.

The budget plan proposed by Sen. Ernest Hollings (D) of South Carolina would have held real growth in defense spending to only 3 percent a year instead of the 10 percent President Reagan wants or the 5 percent the budget committee recommended.

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