Clinton, Congressional Leaders Haggle Over Tax Cuts

Mike Godfrey, Tax-news.com, Washington

13 September 2000

President Clinton met yesterday with Republican and Democratic leaders in the White House Cabinet Room to try to reach a compromise position over tax cuts and debt reduction. With the presidential race gaining momentum, and with hardly any legislative time left before members of Congress leave town to begin campaigning for November elections, everyone understands that the chips are down.

Congress has cleared only two of the 13 vital Government spending bills that have to be passed to avoid shutdowns, and it's expected that Congress will miss its Oct. 6 target date for adjourning by a week or so.

Senate Majority Leader Trent Lott and House Speaker Dennis Hastert both said they were seeking middle ground with the president, but their opening position was still fairly challenging: they want to reserve 90 percent of expected budget surpluses to pay off the debt, leaving about $27 billion for end-of-the-year budget deals with Clinton. 'If we pay down 90 percent of our surplus on the national debt,' Lott said, 'that would still leave funds for the small business tax cuts, the retirement benefits, as well as some increased funding for things like education. And I think we can find a way to provide some prescription drugs for our seniors now.''

Democrats said Republicans would have to give up tax cuts if they want to meet the 90 percent goal. Listing his priorities, Clinton called for more spending for education and adoption of a patients' bill of rights that would give consumers the right to sue insurance companies for inadequate care. He said both sides need to 'just keep on trucking'. 'I think we do have to put focus on paying off some of the debt this year,' said Senate Minority Leader Tom Daschle. 'And I guess the question would be: which of the tax cuts that have been proposed are now going to be taken off the table so we can accomplish that?'

.

Recommended

Write a comment