Armey Says Clinton’s Tax Plans Fall Short

Setting the stage for an election-year fight, Republicans on Monday said President Clinton’s tax-relief proposals are far too modest given the size of projected budget surpluses.

“The government today takes more from working Americans than it needs, and that’s not fair,” said House Majority Leader Dick Armey (R-Texas).

But GOP leaders supported the administration’s proposed tax credits aimed at helping an estimated 44 million Americans gain health insurance coverage.

Although details remained in flux, White House officials said Clinton will outline a tax relief package as part of the fiscal 2001 budget plan that closely tracks the targeted middle-class proposals he advocated last year.

It will include, the aides said, a revised version of 1999’s tax credits for people to invest for retirement savings accounts, which would supplement Social Security and perhaps stave off insolvency in that program.

Clinton economic advisor Gene Sperling said this year’s plan “will go even further in ensuring we have a tax code that rewards work and family for the hardest-pressed parents.”

Republicans are expected to push again this year for much larger and broader tax cuts using the $1-trillion surplus, reprising parts of the 10-year, $792-billion tax cut Clinton vetoed last year.