WASHINGTON (AllPolitics, March 26) -- The Clinton Administration on Friday began voicing its criticisms of the 2000 fiscal year budgets pushed through the House and Senate by Republicans late Thursday over near-unanimous Democratic objections.

In an era of projected government surpluses, the GOP budgets focused on tax cuts, new defense spending and support for Social Security. But Democrats argued that the tax cuts would favor the wealthy at the expense of the future Medicare and Social Security.

On Friday, Treasury Secretary Robert Rubin criticized the GOP's tax-cutting plans, arguing the GOP was missing an opportunity to strengthen the economy and boost federal retirement programs. The GOP budgets go in the "precise opposite direction" of reducing the federal debt and boosting Social Security and Medicare, Rubin said.

In response to a reporter's question whether GOP tax-cutting plans were "going nowhere," Rubin responded: "I know where I think they should go. The place where you suggested."

Rubin did not say if President Bill Clinton would veto the GOP bills. But the Clinton Administration's position is that the surplus should be used to shore up the Social Security and Medicare trust funds, to boost spending on domestic programs and for smaller tax cuts.

"I do not think a tax cut contributes to our economic well-being," Rubin said.

The Senate passed its $1.74 trillion spending proposal for 2000 fiscal year on a 55-44 vote. Sen. John Breaux of Louisiana was the only Democrat to vote for the bill. The House approved a similar bill, 221-208. Only two Republicans voted against it and only four Democrats voted for it.

"They choose the tax cuts over extending the solvency of Social Security and Medicare," said House Minority Leader Dick Gephardt (D-Missouri).

Late Thursday, Clinton called the House budget a "series of missed opportunities." The president said he is committed to paying down the national debt, strengthening Social Security, protecting Medicare and law enforcement.

In a statement, Clinton said: "While this budget marks a reversal from last year's failed effort by Republicans to drain the entire surplus for a tax cut, it still does not do enough to pay down the debt and strengthen Social Security and Medicare."

The passage was a top priority for new House Speaker Dennis Hastert (R-Illinois). He said the bill "saves more for Social Security and Medicare than the president's budget."

In his statement Hastert also said the bill "provides for common sense tax relief in the future. We have the largest surplus in history, which means the taxpayers are being overcharged."

None of plans introduced in the Congress set out specific changes in Medicare or Social Security. They did set aside hundreds of billions of the projected surplus funds for debt reduction, which is aimed at strengthening the economy and making it easier for the government to pay benefits.

Despite the partisanship, there are indications that some of the differences can be overcome. The House and Senate must meet later this spring to develop a compromise a budget.

"Everybody pretty much agrees on where it ought to go," said Sen. James Jeffords (R-Vermont), speaking about the budget surpluses. "The difference is how much goes where."

Clinton's budget calls for the government to spend $1.79 trillion and would leave an $80 billion surplus. Clinton wants tax cuts totaling $81 billion through 2009, but he recommended increasing tobacco and other taxes by $178 billion.

But Clinton's budget received little support from members of both parties. The House voted 426-2 against it.

Two other Democratic alternatives were rejected as well. One plan was similar to the Republican plan but called for smaller tax cuts and more money for selected domestic programs. Its supporters said it would extend the life of Social Security until 2050 and of Medicare until 2020. It was defeated on a vote to 250-173

A group of moderate and conservative Democrats proposed a plan that set aside more money than any alternative for debt reduction and it had the smallest tax cuts. It was defeated 295-134.

In the Senate, Sen. Edward Kennedy (D-Massachusetts) was defeated in an attempt to reserve 15 percent of the surplus for shoring up the Medicare Trust Fund, which is what Clinton wants.

The House plan calls for $1.74 trillion in spending and forecasts a surplus of $141 billion. The Senate proposal projects spending of $1.74 trillion and a $135 billion surplus. The 2000 fiscal year begins on October 1.

Republicans want to cut taxes next year by up to $15 billion and by $778 billion over the next decade. The GOP plan offers a broad outline but no specifics. The have previously discussed eliminating the so-called marriage penalty, cutting income tax rates broadly and eliminating inheritance taxes.

There was one bipartisan victory. Jeffords and Sen. Christopher Dodd (D-Connecticut) won approval for a measure that would reduce the tax cut by $10 billion over 10 years to provide child care grants that could aid 750,000 more children.

The Associated Press contributed to this report.

Friday, March 26, 1999

• House, Senate pass budgets
• Poll: Americans split over NATO airstrikes
• Whitewater witness Hale convicted in insurance case
• Thurmond: If gondola families get restitution, so should South Carolina widow
• Speaker Hastert, a former teacher, chats online with local students
• Daschle changes fund-raising policy, forms PAC
• McKellen takes Lewinsky to premiere
• Bilingual education foe turns to political campaigns
• Interior lawyer alleges he was ordered to 'purge' records
• Social issues prove nettlesome for Bush early on

Election 2000 briefs
• Bradley chooses New Hampshire campaign coordinator
• Democratic congressman to challenge Sen. Santorum
• Forbes runs ads attacking Gore in Iowa and New Hampshire
• Support for Sen. Clinton waning?

ARCHIVES