GOP BUDGET PLAN MAY MAKE TAX CUTS COSTLY.(MAIN)

Byline: ROBERT A. RANKIN Knight-Ridder

WASHINGTON Most Americans would gain tax cuts but lose government services under the budget plan that Republican congressional leaders have endorsed.

And if state and local governments try to make up for those lost federal services, you may very well spend money from your federal tax cut on higher state and local taxes.

The GOP budget plan aims to overhaul the way government works so that federal deficits can be eliminated by 2002. None of it will become law until Congress fleshes out the details in negotiations with President Clinton, who retains veto power. Yet the thrust of the GOP plan is likely to prevail, and the sweep of change it envisions would directly affect every American.

Under the Republican plan which is expected to come to the House and …