Tax axed

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The Independent Online
President Clinton and top Senate Democrats tentatively decided to replace the energy tax with a smaller levy on fuels and electrical power, AP writes from Washington.

Planned tax increases on some Social Security recipients and on the wealthiest taxpayers would be eased, congressional sources said. To make up for the lost revenue, about dollars 20bn ( pounds 13bn) for the energy tax, there would be cuts in Medicare and Medicaid.