GOP Rebuffs Democrats’ Offer to Deal on Taxes

Democratic offers to cut a deal on tax cuts and budget reductions were met with disdain Sunday by Republicans who said the Democrats have relinquished their rights to determine the nation’s fiscal future.

Sen. Christopher J. Dodd (D-Conn.), general chairman of the Democratic National Committee, said the two parties could work together to balance the budget if both the Republicans and the Clinton Administration drop tax cut proposals and find common ground on health care reform.

“If we can do that, then I think frankly we can come to an agreement. That’s what we ought to be doing, not trying to one-up each other,” Dodd said on NBC-TV’s “Meet the Press.”

White House Chief of Staff Leon E. Panetta said the Administration is “prepared to deal” on the budget, but only if the Republicans abandon their tax cut plans and ensure that health care and education will not be sacrificed as part of the drive to balance the budget.

The tentative gestures toward compromise were brushed aside by key Republican budget makers.

The Democrats have failed to offer any specific plan for balancing the budget, said House Budget Committee Chairman John R. Kasich (R-Ohio), whose committee last week unveiled a plan to balance the budget by 2002 by reducing federal spending by $1.4 trillion over seven years while giving Americans a $350-billion tax break.

“They’re really not even in a position to have a legitimate opinion,” he said on CBS-TV’s “Face the Nation.” The debate on whether Congress can cut taxes and balance the budget, he said, “is over.”

Other Republicans also challenged the Democrats to come up with their own spending plan. “What’s next?” Senate Budget Committee Chairman Pete V. Domenici (R-N.M.) asked of Dodd’s remarks. “OK, if there are no tax cuts, will you help us get to zero? Will you get a balanced budget?”

Panetta said the Administration wants to balance the budget but based on rational reform in health care and not with any specific deadline.