The reduction would likely be found by slowing the phase-ins for some of the tax cuts. Like Castle's alternative plan, the GOP Senate bill would reduce the lowest tax bracket from 15 percent to 14 percent. It does not eliminate the estate tax or cut capital gains taxes. Rep. Bill Archer Clinton has threatened a veto of Republican proposals by arguing they would damage efforts to shore up Social Security and Medicare and that remaining surplus funds would be better spent on programs ranging from education to defense. And at a Capitol Hill news conference, Treasury Secretary Lawrence Summers warned that huge tax cuts also could have unwanted economic consequences, including higher interest rates, greater inflation and a larger public debt.
Confidence is crucial.
It is time for us to make the right and prudent decision. The president's approach is backed by congressional Democrats. Senate Minority Leader Tom Daschle Tuesday repeated many of the same complaints when criticizing the Republican package under consideration by the Finance Committee. It explodes in costs just as the Baby Boomers start to retire and Medicare and Social Security come under pressure. Up to a half-dozen House conservatives are trying to insert stronger provisions that could drive up the overall cost of the bill.