Shift on Tax Strategy Exposes Gingrich to Barrage of Criticism From Right Flank

Barely two months after House Republicans rallied around their beleaguered speaker, a new series of controversies has left Newt Gingrich struggling to reestablish his authority as the preeminent leader of the GOP revolution.

Gingrich’s planned trip to China next week, the lackluster start of the new Congress, the speaker’s overtures to liberal Democrats such as Jesse Jackson--all have galled conservative allies who regarded Gingrich two years ago as the Moses who led the GOP from the wilderness.

In the bitterest spat yet with his party’s conservative wing, Gingrich (R-Ga.) went before a closed-door party caucus Wednesday to defend himself and to explain why he has suddenly shown a new willingness to postpone action on tax cuts--a holy writ of the conservative agenda.

The dire predictions circulating in cloakroom chatter--that Gingrich may soon step down as speaker--may never come true. But unless he can rehabilitate himself politically, many Republicans fear, the chances that this Congress will advance the conservative cause will diminish rapidly.

“There is a lack of confidence,” said Rep. Joe Scarborough (R-Fla.), a conservative back-bencher. “He is reaching out to people who have never been his allies, and he’s offending his base.”

Some worry that Gingrich is sacrificing conservative principles because he thinks a more moderate image will help him put his ethics problems behind him. “It’s hard not to believe that everything he does isn’t part of his personal rehabilitation,” said Rep. John Shadegg (R-Ariz.).

It is ironic that Gingrich is facing such heavy fire from his right flank. In January, when he was scrounging for support among Republicans for his reelection as speaker, many of the people who jumped ship came from the party’s moderate wing. Now, party moderates are among those hailing Gingrich’s shift on tax strategy as a bold act of leadership.

“What he is doing is absolutely on the right wavelength,” said Rep. Sherwood Boehlert (R-N.Y.).

Indeed, President Clinton was so encouraged by Gingrich’s show of flexibility on taxes that he invited congressional budget leaders to the White House on Wednesday to jump-start stalled efforts to craft a balanced budget.

After the meeting, Clinton said he hoped to make rapid progress with House and Senate leaders in meetings after Congress returns from a two-week recess that begins Friday.

“It’s time now to give the American people a balanced budget, and I believe we will do it and do it this year,” Clinton said.

There were no signs that Republicans stepped back from Gingrich’s shift on tax strategy in the meeting. If that shift does, in the end, help pave the way for a budget agreement, it may prove to be a high-risk gamble that pays off handsomely. One key to whether Gingrich can revitalize his leadership, said Rep. Fred Upton (R-Mich.), is “whether we actually see a budget agreement.”

Gingrich’s odyssey this year began with a tough test of Republicans’ loyalty in January, when Republicans reelected him speaker without knowing the outcome of the ethics investigation of his political affairs. Just two weeks after that, he became the first speaker in history to be formally sanctioned on ethics charges.

In the following weeks, Gingrich kept a low profile. On the rare occasions when he talked to reporters, he refused to answer questions about his ethics case or about the nagging question of how he will pay his $300,000 ethics penalty.

Gingrich’s allies say the speaker has been on the sidelines to regroup in the wake of the 1996 elections and his ethics crisis.

“Newt always spends more time planning than doing,” said Rep. John Linder (R-Ga.), a top Gingrich ally. “He’s been thinking about what is best for the Republican conference.”

In the meantime, some Republicans have grown restless as the first months of the year produced little for conservatives to cheer. Term limits were defeated. The balanced-budget constitutional amendment was pulled back. Among the few measures to win House approval were more money for international family planning, which conservatives think promotes abortion, and renewal of higher taxes on airline tickets.

“That’s not exactly a message that warms the hearts of Republicans over the country,” said an aide to a House Republican leader.

In the absence of strong leadership from Gingrich and a compelling agenda, House Republican circles have been rife with rumors about Gingrich’s future and gossip about the potential succession struggle if he leaves.

“Everything you do is viewed in the context of--’Ah! He’s positioning himself!’ ” said a leadership aide.

In recent days, Gingrich has taken a few halting steps back into the limelight. He gave a speech--to a nearly empty House chamber--about the GOP agenda. Beginning next Monday, he is leading a congressional delegation to China and the Far East.

“I guess it’s a coming out,” said Linder. “You’ll see him a bit more in public.”

Some conservatives do not think a trip to China is the best way to come out. They argue it is inappropriate to travel there at a time when the FBI is investigating whether China tried to illegally influence American elections and the Democrats are knee-deep in controversy about Asian-related campaign contributions.

Nothing has riled conservatives more than Gingrich’s shift in strategy on tax cuts. More than two dozen conservative House Republicans wrote to Gingrich protesting his apparent retreat from GOP doctrine that tax cuts must be an integral part of a balanced-budget scheme.

Gingrich and other leaders have been scrambling to rebuild a united front. But other GOP leaders have been hard-pressed to hide their annoyance. “We got to fulminating out loud a little too much,” said Senate Majority Leader Trent Lott (R-Miss.).

Gingrich managed to smooth some ruffled feathers when he went before his caucus on Wednesday and explained that he was as committed as ever to tax cuts. But his rank-and-file made plain they are irritated that Gingrich should announce major policy shifts in casual comments to reporters.

“A strong objection was made that it is outrageous that we have to learn the policy positions of our leaders by reading the newspaper,” said Shadegg. “That does damage to the speaker.”

There are dark rumblings about a possible insurrection against GOP leaders, but even some of Gingrich’s conservative critics say it is unlikely that he will be forced out of the speakership any time soon, because there is no consensus about who should succeed him. “His hold on the reins of power remains extremely strong,” said Shadegg.