Sat, Mar 10, 2001 - Page 1 News List

Bush wins first bout in tax cut battle

AFP , WASHINGTON

US President George W. Bush won his first legislative victory Thursday as the House of Representatives approved a central slice of his ambitious tax plan despite stinging Democratic criticism.

"I can't thank you enough," Bush told House Speaker Dennis Hastert, who called to tell him of the win. "I'm really pleased."

In the phone call, which was broadcast live in the House, Bush described the vote as sending "a strong message to the American people." Bush was in North Dakota before going on to spend the weekend at his ranch in Crawford, Texas.

The House voted 230-198 almost straight down party lines for the US$958 billion income tax cut, a key component in a sweeping blueprint for US$1.6 trillion in tax relief over 10 years.

Although mostly a partisan vote, 10 Democrats threw their weight behind the cut, as Republicans hold a thin 220-211 majority in the House. Two seats are held by independents and two more are vacant.

"This is just the beginning. We're going to do a lot more," promised Republican Dick Armey, the House Majority Leader.

But the vote could prove a hollow victory for the Republican president, as it came at the cost of considerable political bipartisanship, which Bush so carefully cultivated at the outset of his presidency.

"Bipartisanship is over," House Minority Leader Dick Gephardt stated. "This a continuation of `my way or the highway' leadership."

The House also voted to push aside a US$586 billion income tax cut, a Democratic alternative introduced by Democrat Charles Rangel of New York, which his party has argued would better aid lower income families.

Gephardt had recommended the alternative proposal as providing more room for error if budget surplus projections of US$5.6 trillion over the next 10 years prove over-optimistic.

"We are taking an action today that leaves us less alternatives in case the forecast is wrong," he warned. "This tax bill is based on projections -- which are always wrong."

But Bush had worked to convince Americans otherwise. "We've got enough money coming into the Treasury to meet important obligations, but we've also got enough money to remember who paid the bills in the first place," he said Wednesday.

Democrats argued heatedly against the plan, particularly because it was brought to the House floor before Bush presented his budget to Congress. Democrats were also incensed that although since taking office Jan. 20 Bush has repeatedly vowed to work with the political opposition, there was little compromise on the tax cuts.

"You've got a lot of agreement there on tax cuts. It shouldn't have been too difficult to get to a compromise," Gephardt said.

"It's not a good indicator of where we're going in the future," he added. "I predict if they continue this partisan atmosphere and way of doing things, we're not going to get a lot done."

This story has been viewed 2239 times.
TOP top