Federal lawmakers officially return to work Tuesday facing much the same agenda as they did last year–reducing the soaring federal deficit; revamping the nation`s tax code; tackling trade, banking and immigration issues–but this year there is an extra element of urgency.
The new Gramm-Rudman law will force Congress to cut the deficit, now beyond $200 billion a year, by $50 billion to $60 billion or face automatic cuts in federal programs.
These difficult spending decisions will be made against the backdrop of the 1986 congressional elections in which Democrats hope to recapture control of the Senate and present President Reagan with a Congress controlled by the opposition during his final two years in office.
Twenty-two of the 34 Senate seats at stake are held by Republicans. Democrats must make a net gain of four to be back in the majority. In the Democratic-majority House, Republicans are hoping to hold their losses to 10 or 15 seats.
This new era for the federal government, in which automatic budget cuts would take place under the law if lawmakers fail to bite the budget bullet, comes as another era draws to a close on Capitol Hill.
Led by House Speaker Thomas O`Neill (D., Mass.), the session will be the last for a number of notable politicians. O`Neill, whose white mane and rotund figure became well-recognized in his role as leader of the opposition to Reagan, retires after 35 years in Congress, 9 of them as as speaker.
Also leaving are such prominent politicans as former presidential candidate Sen. Barry Goldwater (R., Ariz.), presidential hopeful Sen. Gary Hart (D., Colo.) and Sen. Russell Long, (D., La.), a dominant figure in Congress on tax and fiscal matters and son of the legendary Huey Long.
The lawmakers, returning from a month-long recess, are not expected to do much substantive work until after Reagan presents his spending plan in early February. But as things appear now, Capitol Hill and the White House are far apart in their budget priorities.
The White House wants to preserve Pentagon spending while taking the required savings from domestic programs. Congressonal leaders of both parties, though, say reduced military spending and higher taxes must be part of any budget compromise.
Nearly every congressional decision in this new Gramm-Rudman era is expected to be weighed against the requirements of the deficit-reduction law, which calls for a balanced budget by 1991.
Despite the congressional obsession with controlling the federal deficit, Reagan has called overhauling the nation`s tax code his top domestic priority. A reluctant Senate is expected to take up the issue this year. The President`s last-minute lobbying effort at the end of last year rescued a 1,300 page bill re-doing the nation`s tax laws from dying in the House.
Analysts doubt the Senate will complete action on a tax bill before summer. Some lawmakers believe the bill could become a vehicle for a tax increase as Congress grapples with the difficult choices of slashing federal spending or facing the Gramm-Rudman law`s requirement for automatic cuts.
Reagan has said he opposes any tax increase.
Congress also is expected to examine again proposals aimed at limiting imported goods and to consider an administration request for military aid to rebels trying to overthrow the leftist government in Nicaragua.
