Bush Criticizes, Then Coaxes Lawmakers

President Bush, playing both roles in a good-cop/bad-cop routine, on Monday angrily denounced opponents of his proposal to cut the capital gains tax, but moments later extended “the hand of cooperation” to the House and Senate.

“I am sick and tired of the demagogues who call this a tax cut for the rich,” Bush said--using the very phrase Democratic opponents in Congress have employed to describe the proposal.

“It means jobs. It means savings. And it is good for all Americans,” the President said, his voice rising to a near shout as he slammed his lectern with his hand.

Speaking to the annual convention of the American Farm Bureau Federation, the President listed his top priority issues for the coming year--presenting, at the same time, a road map to some of the likely battles between the Administration and the House and Senate. Congress returns to Washington in two weeks.

“We sent proposals to Congress (last year) on clean air, combatting crime, capital gains. Responsible proposals. Carefully thought-out. Based on principles,” he said. “Now, a year has passed. It’s time--it is past time--for Congress to tend to some of the unfinished business.”

The crime bill would impose limited restrictions on semi-automatic assault weapons, increase penalties for firearms violations, restrict plea bargaining, and add 2,400 positions to various federal law enforcement offices. Bush would also spend $1 billion on prison construction.

The clean air proposal is aimed at curbing acid rain, urban smog and toxic substances by capping power plants’ sulfur dioxide emissions by the turn of the century, imposing tighter standards on motor vehicle emissions of hydrocarbons, and curtailing emissions of nitrogen dioxide.

The capital gains proposal is a centerpiece of the President’s economic program.

His initial proposal was defeated by Congress last year. It would have reduced the rate for capital gains taxes to 15% on most types of investments, down from the current rate of 28% to 33%.

Capital gains are the profits from the sale of assets or investments, primarily stocks and bonds.

This year’s version of the proposal, certain to run into further opposition from congressional Democrats, would offer a sliding scale, depending on how long an asset was held.

The lowest rate would be 19% for investments owned and leased three years, with a rate of 25.2% for one-year investments and 22.4% for those held for two years.

The latest plan also would expand the lowest capital gains rate to include real estate.

“For us to reap the full benefits of a competitive economy, we must cut the capital gains tax rate,” Bush said, returning to his argument that the measure would encourage investment by lowering the tax on such profits.

“Passage of our capital gains proposal, which would apply to the sale of farmland, will be one of my top priorities in this legislative year. The fight isn’t over yet,” he said.

But, after sharply criticizing the treatment he got in the House and Senate last year, Bush said: “The hand of cooperation is once again extended.”

Bush also listed a new five-year farm bill as a top priority this year. He won a round of laughter from his audience of farm families when he said, “getting a good farm bill through Congress is like milking a bull.”