Clinton Renews Tax Cut Veto Threat

Renewing his veto threat, President Clinton said Saturday that the Republicans’ 10-year, $792-billion tax cut plan would result in “some of the worst cuts in education in our history.”

In response, the nation’s 31 Republican governors joined with GOP congressional leaders in promoting their tax package.

“If the Republicans send me a bill that doesn’t live up to our national commitment to education, I won’t hesitate to veto it,” the president said in his weekly radio address.

Speaking on behalf of Republicans, Gov. Jim Geringer of Wyoming argued for a massive tax cut funded though projected budget surpluses over the next decade.

“Why not give the money and our government back to the people?” Geringer asked in the GOP’s radio address. He accused Clinton of seeking to “spend every spare dollar of the surplus . . . and obligate more of your family’s income for the next 10 years.”

Rep. J.C. Watts Jr. (R-Okla.), chairman of the House Republican Conference, also issued a statement touting the GOP’s plan for education improvements. Watts said it will allow control of education to remain with parents and teachers and not “some clock-puncher in the massive Department of Education.”

“The Republican tax-relief package meets America’s priorities by making crucial investments in education,” Watts said, citing proposed expansion of prepaid tuition plans and expansion of tax-free savings accounts for education.

But Clinton contended that the GOP proposal shortchanges schoolchildren.

Using part of a projected 10-year surplus, the Republican tax bill would reduce all income tax rates by 1 percentage point; cut capital gains taxes; gradually eliminate estate taxes and the alternative minimum tax; ease the “marriage penalty” paid by many two-income couples; expand pension laws; and give breaks for businesses.

Clinton contends it would draw away money needed to preserve Medicare and Social Security and to ensure adequate spending on education and defense.

Clinton said the Republican proposals require cuts of more than 50% in federal aid to education over the decade.