[Daniel Patrick Moynihan] and House Ways and Means Committee Chairman Dan Rostenkowski (D-Ill.) had earlier tried to push through a 6.5-cents- per-gallon increase in the gas tax, but the leaders backed down after Sen. Herbert H. Kohl (D-Wis.) said he would vote against the package if it contained more than 4.3 cents in additional gas taxes.

A version of the budget package circulated by Moynihan early yesterday including the larger 6.5-cents-per-gallon gasoline tax would have achieved only $483 billion of deficit reduction over five years, according a Senate source.

Moynihan and Rostenkowski planned to meet this morning with House and Senate Democratic leaders and senior administration officials. Moynihan said he expected negotiators to complete work on the compromise today. House aides said the bill may be brought up on the floor as early as next Wednesday, with Senate action following later in the week.