3rd budget plan offered, slashing budget, tax cuts

The ranking Democrat on the Senate Budget Committee proposed an alternative budget nearly identical to one offered by Chairman Pete V. Domenici (R) of New Mexico. The plan offered by Sen. Ernest F. Hollings (D) of South Carolina would, however, trim the scheduled July tax cut to 5 percent and eliminate the reduction planned for 1983 - steps Mr. Hollings said would help produce $198 billion in additional revenue through 1985. Mr. Domenici proposed raising an extra $125 billion without tampering with the tax cuts.

The congressmen both propose freezing social security and other benefits for one year. Mr. Hollings recommended trimming President Reagan's defense budget slightly more than the $5 billion proposed by Mr. Domenici.