-Caveat Lector-

Congressional Republicans Give Up on Huge Tax Cut This Year
By Eric Pianin
Washington Post Staff Writer
Friday, September 10, 1999; Page A08

With limited public appetite for their number one priority, congressional
Republican leaders yesterday conceded defeat in their quest for a big tax
cut this year and shifted to a more modest strategy aimed at keeping
spending down and taking credit for reducing the national debt.

Faced with a certain veto of their $792 billion tax cut plan, GOP leaders
indicated they have little interest in trying to negotiate a compromise
package with President Clinton in which they would trade an increase in
spending for Medicare and other domestic programs for a smaller tax cut.

Instead they said they will focus largely on passing routine spending bills
and locking in future budget surpluses to protect Social Security and begin
paying down the $5.6 trillion accumulated national debt.

This change in strategy reflects a calculation by Republicans that it would
be politically risky to engage Clinton in complicated eleventh-hour
negotiations, as they have in the past with often disastrous results.
Instead, Republicans have concluded they will be better off getting out of
town as soon as possible and preparing for next year's election.

It also reflects their lack of success in persuading the public to support a
tax cut many rank as low on their list of priorities. A new Washington
Post-ABC News poll shows Americans want Congress to use any budget surplus
to increase spending on education and health care programs before they cut
taxes or reduce the national debt.

"We don't feel we need a tax cut to survive," said Rep. Thomas M. Davis III
(Va.), chairman of the National Republican Congressional Committee. "Our
challenge to the president is, 'If you don't use the surplus for tax cuts,
don't use it for more spending.' "

The White House and congressional Democrats insist there is still time for
an agreement this year on a smaller tax package in the range of $250 billion
to $300 billion targeted to the middle class.

Clinton told reporters yesterday that "I'm willing to work" with the
Republicans to provide a modest tax cut this year that will not undermine
efforts to buttress Social Security or reduce the debt. "There is always
some flexibility in this budget," he said.

But House Majority Leader Richard K. Armey (R-Tex.) and other House leaders
yesterday echoed the assertion of Senate Majority Leader Trent Lott
(R-Miss.) that a veto of the GOP tax bill would kill taxes as an issue this
year.

"We'd love to see [Clinton] sign the bill, but if he's not going to sign it
. . . we're not prepared to let the president give us sort of a half-baked
tax bill in exchange for an increase in spending," Armey said.

House Speaker J. Dennis Hastert (R-Ill.) dismissed talk of a last-minute
deal on taxes and spending as a "lose-lose situation" for Republicans,
adding that the GOP tax bill passed by Congress last month "is our one
chance" for major tax relief this year.

Yet even the minimalist approach will be difficult. Only two of the 13
annual spending bills have cleared Congress and been signed by the
president, with the largest and most contentious yet to be completed.

Because Congress is operating under budget constraints imposed by the 1997
balanced budget deal, there isn't enough money available to finance
government programs and personnel to the satisfaction of a majority of House
and Senate members and Clinton without dipping into surpluses in the Social
Security program--which Republicans and Democrats alike have promised to
keep off limits.

The Congressional Budget Office (CBO), among others, has warned that
mounting spending demands--including billions of dollars of supplemental
spending that the administration will soon request--would wipe out the $14
billion non-Social Security surplus projected for 2000 and eat into the
Social Security funds to the tune of $11 billion or more.

House Majority Whip Tom DeLay (R-Tex.) yesterday insisted that Congress
would find a way to pass all the spending bills without dipping into Social
Security, although it was far from clear where the Republicans would find
the additional funding or the necessary offsetting cuts in other programs.

Already, GOP leaders have had to employ a number of gimmicks to make some of
the smaller spending bills palatable to members of Congress. Now they have
to find a way to pass the larger, much tougher bills, including the
labor-health-education and commerce-justice-state appropriations bills.

Yesterday the House passed a $90 billion veterans-housing spending bill, 235
to 187, over vigorous complaints from the administration and Democrats about
deep cuts in housing programs and NASA. The bill consisted of a series of
tough trade-offs, with the Republicans agreeing to boost spending for
veterans medical care by $1.7 billion and fully funding all expiring
contracts for the Section 8 housing program, while cutting back in on other
housing programs and space programs.

Locally, area members of Congress said the bill would pare $267 million from
NASA's Goddard Space Flight Center in Greenbelt, potentially forcing the
elimination of 1,500 jobs this year and an additional 1,000 jobs in 2004.

Virginia lawmakers also are fighting the cuts, because NASA Administrator
Daniel S. Goldin has said up to three of 10 NASA space centers could be
forced to close, including Langley Space Research Center in Hampton.

Staff writers Spencer S. Hsu and Juliet Eilperin and polling director
Richard Morin contributed to this report.
http://www.washingtonpost.com/wp-srv/WPcap/1999-09/10/005r-091099-idx.html

Bard

If the choice is Al Gore or George W., there is really no choice at all. The
first will take you to hell in the fast lane, the other will take you there
in the slow lane. Either way, your destination is the same -- you're still
on the highway to hell.

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