President Clinton unveiled his plan to use the estimated budget surplus to secure Social Security and Medicare first and far most, eliminate the national debt, while still having enough left over to compromise a deal with the Republican led Congress and their demand for tax cuts. A writer for The New York Times, wrote the president was willing to work with Republican leaders to use the $2.9 trillion federal budget surplus over the next ten years but was only willing to devote approximately $250 billion to tax cuts. He was quoted by The New York Times "The surplus is the hard-ea

The Democrats were the first to submit an alternative proposal of $290 billion to the Senate. It targeted tax breaks for retirement savings, college tuition, health care, married couples, and buyers of health insurance with enough money left over to ensure the protection of Social Security, Medicare, new programs, and pay down the federal debt. The alternative proposal to President Clinton's $250 billion tax plan ended in defeat when the Senate voted 60-39 against it. The Republicans of the House debated for a larger $792 billion tax cut before the Ways and Means Committee. The debate ended with a 223-208 vote and a Republican win. Their tax cut proposal called for across the board 10 percent cut in income tax rates phased in over a period of ten years. After 2001, annual increases would kick in only if total national debt dropped. It allowed for married couples to claim an increased standard deduction. Concerning capital gains, the House voted to cut the top tax rate for most investments held at least a year from 20 percent to 15 percent. The alternative minimum tax called to ensure personal credits that would not cause middle-class people to become subject to the tax and gradually repeal the amount over a period of ten years. Estate taxes would be phased down and eventually would repeal tax on inheritances. Pertaining to retirement, it would increase contribution limits to some employee benefit plans and reduce time for vesting in some pensions from five years to three years (Associated Press 1999, 1). While the $792 billion was being debated before the Senate, Richard W. Stevenson reports in The New York Times "Republicans suffered a symbolic setback when they were unable to sidestep a rule--written at a time when Congress was intent on limiting the growth of budget deficits--that makes it difficult to pass tax cuts that remain in effect for more than ten years." It was also reported "Republicans asked for a waiver of the rule, a step that requires 60 votes. But they could muster only 51 votes, as all 45 Democrats and three moderate Republicans voted to keep the rule in effect" (Stevenson 1999, 3).

Stevenson, Richard W. 1999. "Senate Republicans Turn Aside Democrats' Plan for Tax Cuts." The New York Times On The Web, 29 July, www.nytimes.com.

The past few weeks have been very trying for both the Republican and the Democrat parties. Only time will tell who will land on top of the issues at hand. Surpassed in the past in budget politics by President Clinton, Republicans remain suspicious but welcome some of his programs. It seems the surplus estimate suddenly enlivened a year in which political pressures from the 2000 elections had made agreement seem unlikely on such high-profile issues as Social Security, Medicare, and tax cuts.

Compromis

Some common words found in the essay are:
President Clinton, Means Committee, York Times, Senate Republicans, Washington Times, Tax Cuts, Times Republicans, Reserve Fed, House Senate, Associated Press, tax cuts, york times, tax cut, president clinton, associated press 1999, 1999 2, washington times, press 1999, associated press, budget surplus, stevenson 1999, cuts york times, york times web, tax cuts york, social security medicare,
Approximate Word count = 1887
Approximate Pages = 8 (250 words per page double spaced)