Gingrich Sends Warning on Budget : Deficit: House GOP whip won’t back it unless it’s ‘a very, very good package.’ He says Bush made a mistake when he reversed himself on taxes.

House Minority Whip Newt Gingrich (R-Ga.) said Sunday that he will withhold his support from any budget agreement reached by White House and congressional negotiators unless it is “very, very good . . . extraordinarily good” from his conservative viewpoint.

Gingrich, a sometimes rebellious GOP member of the negotiators seeking a deficit-cutting package, also said that President Bush made a major mistake when he reversed himself and abandoned his “read my lips” campaign pledge against new taxes.

“I think it is nonsense to sell out to the Democrats on Capitol Hill,” Gingrich said of Bush’s declaration June 26 that tax revenue increases would be required in any bipartisan agreement to reduce red-ink spending.

While a budget accord would be useful, he added, it is not essential and Republicans would be better off “going to the country” on the spending issue in the November elections.

The Bush Administration has warned that as much as $100 billion worth of automatic spending cuts may be triggered in October unless the White House and Congress reach agreement that will pare $50 billion from the estimated $168.8-billion deficit before the deadline.

The fiery Georgian’s statements on NBC’s “Meet the Press” appeared to undercut the bogged-down budget talks that the President has made a top priority before Congress starts its August recess.

Under the ground rules set by the White House and top Democratic congressional leaders, any agreement would have to be ratified by at least half the members of each major party and, as the Republican whip, Gingrich would be asked to round up support for any accord the President endorses.

Rep. William E. Dannemeyer (R-Fullerton), however, said that he would prefer to accept any amount of automatic spending cuts under the Gramm-Rudman deficit reduction law than vote to raise taxes, adding: “I think the country would breathe a sigh of relief if they would have the idea we’re getting some fiscal sanity here in Washington.”

Another Californian, Rep. Leon E. Panetta (D-Carmel Valley), chairman of the House Budget Committee and a summit participant, said that the statements by Gingrich reflect a “schizophrenic catharsis” or internal struggle within GOP ranks.

“Are they for taxes or against taxes, for the President or against the President, for participating in the (budget talks) process or for attacking it,” Panetta said in a telephone interview. “It’s clear Newt is playing more of a political role than a negotiating role.

“But we have to continue to work toward the best agreement we can reach and at that point, some will be with us and some will be against us,” Panetta concluded.

In a related development, Charles Black, a new spokesman for the Republican National Committee, pictured the President as reluctantly submitting to Democratic demands on taxes for the good of the country.

“He (Bush) believes that getting a budget agreement to jump start the economy and spur economic growth is of primary importance to his Administration and to the country,” Black said on CBS’ “Face the Nation.”

“So, if the liberal Democratic leadership of the Congress insists that to have a budget agreement he must consider tax increases, he’s willing to do it.” Black added.

On the issue of taxes, Gingrich said that he would represent the views of fellow House Republicans who voted 2 to 1 against any tax increases in a deficit reduction agreement.

“I think it was a major mistake to give up on taxes the way the President did,” he said. “Even though I’m in the budget summit, if we don’t get a very, very good deal, I am not going to support the summit package. It’s going to have to be extraordinarily good.”

Later, Gingrich added: “I personally have been very clearly opposed to any increase in income taxes, and I think we have to wait and see what comes up,” he added. “But if it’s not a very, very good package, I wouldn’t ask any Republicans to vote for it.”

In an initial offer supported by GOP negotiators, the Bush Administration has proposed a tax increase of $20.2 billion, including $7.2 billion in higher beer, wine and liquor taxes and a boost of $3 billion from placing a limit of $10,000 on deductions for state and local taxes.