April 19, 1978

HR Ways and Means Com rejects proposal in Carter tax pkg that would raise $2.8 billion in additional revenue by tightening up on income tax deductions for med expenses and casualty losses; adopts proposal by Reprs Barber B Conable Jr and Joseph L Fisher that would allow persons using short form tax return to take deductions for charitable contributions, for estimated revenue loss of $2 billion; adopts proposal by Reprs Dan Rostenkowski and Martha Keys that would raise $40 million in revenue by tightening rules on deductions for medicines and discontinue deduction for med ins costs; rejects Adm proposals that would disallow deductions for employee contibutions to state disability ins funds (M)

Commerce Dept repts nation's builders increased new construction by 32% in Mar; privately-owned housing units were started in Mar at rate of 2.07 million units a yr, up from 1.57 million in units in Feb '78 but about same rate of 2.09 in Mar '77 (S)

Ital security forces stage vain search for Moro's body; map; illus (L)

The stock market, after three sessions of soaring prices and hectic trading, declined moderately yesterday as traders cashed in on some of their gains.

newly apptd School Chancellor Frank J Macchiarola outlines his educ and fiscal philosophy and direction he hopes city ps system will take during his tenure, news conf and int; details; Macchiarola and family illus (M)