US House of Representatives Speaker Dennis Hastert (R - Ill.) and White House Chief of Staff John Podesta have exchanged letters on the subject of tax cuts proposed in bills passed by the Congress before the summer break, but not yet submitted to President Clinton, who is expected to veto them.
The Speaker says that the cuts would consume far less of the budget surplus than the White House claims, and asked for co-operation:
'Mr. President, let's get the people's work done and not play politics with the budget process. We proved last year we could reach agreement, and we can do it again.'
'Your assertion that Republicans have passed nearly $2 trillion in tax relief is wildly off the mark,' the letter said, 'We can afford to provide some common-sense tax relief to the American people, whose hard work and tax dollars build up this surplus.'
John Podesta's response said that the administration wants to 'work together on fiscally responsible' tax cuts and setting spending priorities:
'As it now stands, however, your party continues to support an irresponsible tax strategy that abandons the fiscal discipline that led our country out of deficits and toward the economic prosperity we enjoy today' said the White House.
The two threw a barrage of numbers at each other, but it has become increasingly difficult to sort out the reality of the various proposals and counter-proposals, which overlap each other, duplicate some of last year's cuts, and in any case are nothing better than best guesses.
Compromise or no, the Congress and the President have a more than full workload when the the legislature reassembles in early September. Only two of the 13 annual government spending bills for the fiscal year beginning Oct. 1 have been signed into law and there are disagreements on many others. Still, a major confrontation on the scale of 1995 does not seem likely at this stage.
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