Even House Majority Leader Richard K. Armey (R-Tex.), a top tax-cut diehard, is bowing to the inevitable: compromise with the Senate on the massive tax reduction the House approved in April. With polls showing deficit reduction more popular than tax cuts, the Senate is sure to pass a bill less generous than the House's $345 billion seven-year plan. When the two chambers meet over differences, "there may be some latitude" to deal, Armey concedes for the first time.

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