The benefit of federal tax deductions for the wealthy would be limited. About $130 billion of the five-year deficit reduction would come from new taxes, including:

To spur economic growth, tax deductions of up to $50,000 would be provided for investments in new businesses with $50 million or less in equity, and tax incentives would be provided for investments in economically depressed areas.

Raising the federal gasoline tax to 17 cents a gallon from 9 cents a gallon.

Higher excise taxes on alcoholic beverages, cigarettes and airline tickets.

A new tax on the purchase of new, expensive automobiles, jewelry, electronic equipment, furs and private aircraft.

A broad-based tax on fuels based on their energy content.


About $120 billion of the five-year savings would come from benefits programs, including:

The biggest cut, $60 billion, from Medicare. Premiums paid by beneficiaries for the voluntary coverage of physicians and outpatient services, which currently cover 25 percent of the program's anticipated costs, would be increased to cover 30 percent, saving $30.7 billion over five years.

This year's $28.60 monthly premium would rise to $34.32.

The program's deductible would double from $75 to $150 and grow in future years to match inflation, saving $8.8 billion over five years.


About $170 billion of the five-year savings would come from Pentagon accounts.


Nonmilitary programs subject to annual appropriations would be held to the projected rate of inflation.



Social Security: Bargainers were considering whether to seek any savings in this politically sensitive program. Democrats have proposed increasing the amount of higher-income recipients' Social Security benefits that are subject to taxation. Currently, single Social Security recipients with adjusted gross annual incomes of more than $25,000 and married recipients filing jointly with incomes of more than $32,000 must pay taxes on half of their benefits. The Democratic proposal would raise the amount subject to taxation to as high as 85 percent.



All U.S. Park Service facilities are expected to operate as usual on Monday. If Gramm-Rudman-Hollings automatic deficit-reduction cuts begin or Congress fails to approve an emergency stopgap funding bill, attractions along the Mall, such as the Washington Monument, probably would post schedule changes on Tuesday. White House tours usually are closed on Mondays and Tuesdays.


The Smithsonian would close Monday if the government shuts down. If automatic spending cuts take effect, Smithsonian museums would shut down Oct. 5 and Oct. 15.


If the government sends workers home early Monday because of a budget impasse, Metro bus service will adhere to regularly scheduled service. Metro advises passengers who rely on rush hour-only bus service either to stay downtown until afternoon rush-hour service starts or make other arrangements. Metro rail is expected to add subway cars and operators to accommodate midday furloughs.

Planes and trains:

Without a funding bill or exemption from the president, numerous flight delays and cancellations are expected. Passengers should check with airlines. Amtrak will remain in full operation and will add equipment in the New York-Washington corridor to handle passengers unable to fly.