ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, June 30, 1995                   TAG: 9506300092
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium


HOUSE, SENATE PASS 7-YEAR BUDGET-BALANCING OUTLINE

Triumphant Republicans steered their landmark plan for balancing the budget and slashing taxes through Congress on Thursday, moving a key step toward their goal of changing the face and role of government.

By an almost party-line vote of 239-194, the House approved the GOP fiscal framework claiming to halt federal deficits by 2002 while envisioning $245 billion in tax cuts for families, investors and businesses. Only one Republican and eight Democrats deserted their parties' positions.

Virginia's House delegation split on the party line, with all Republicans voting for, all Democrats against the plan.

Shortly afterward, the Senate gave the measure final approval by a straight party-line vote of 54-46.

The outline does not require President Clinton's signature, but the White House renewed its warning that Clinton might veto subsequent bills cutting taxes and spending if they mirror the blueprint's priorities. Spokesman Mike McCurry said Clinton might have to reject the measures ``if we are going to protect the interests of the American working family and protect the American economy.''

House Budget Committee Chairman John Kasich, like other Republicans, was giddy with victory. ``This is why we came to Congress,'' he said. ``To put America over politics, to put the future over the present.''

His counterpart and chief co-author of the plan, Senate Budget Committee Chairman Pete Domenici, R-N.M., proclaimed, ``Just before Independence Day, it is more than a coincidence that a budget resolution is going to free America'' from higher debts.

Democrats, to the end, insisted the GOP plans would hurt most people.

``The Republican budget lacks a heart and it has no soul,'' complained Sen. James Exon of Nebraska, ranking Democrat on the budget panel. ``In a family, you look after each other.''

The plan filled in some detail of the broad pledges Republicans made during last fall's campaign to balance the budget, prune programs and cut taxes.

It maps $894 billion worth of savings, plucked mostly from Medicare, Medicaid and a host of anti-poverty programs. In addition, the Commerce Department and operating aid for mass transit systems would be abolished and scores of other programs axed.

The White House veto warning meant the Republican outline was an opening gambit in what is likely to be prolonged negotiations later this year with Clinton, who prefers a 10-year plan with smaller cuts in taxes and spending.

``I hope we can work something out,'' House Speaker Newt Gingrich, R-Ga., told reporters, then lawmakers resumed their work in hopes of beginning a Fourth of July recess late today.

The Senate exhibited its customary reserve as it blessed the outline, with Republicans exchanging friendly pats on the back. Kasich was in the chamber as the vote was held, flashing a thumbs-up sign.

Earlier in the House, a cheer from the GOP side of the floor rang out on passage.

During debate, Republicans in both chambers proclaimed a new era of tough-minded budget making in Washington following four decades of Democratic congressional dominance.

``The party of the past 40 years of profligate spending is over,'' said Senate Majority Whip Trent Lott, R-Miss.

Democrats resorted to the counter-argument that they hope will appeal most to voters next fall, that Republicans are aiming the tax cuts to benefit mainly the rich while putting the crunch on the neediest, frailest Americans.

``Don't kid yourselves about who's paying for that tax cut for the wealthy - America's elderly and America's children,'' said Sen. Wendell Ford, D-Ky.

It will take Congress well into the fall to decide precisely how to achieve the savings the budget promises: $270 billion from Medicare, $182 billion from Medicaid, $100 billion from welfare, and billions more from veterans, education and agriculture.

There also must be final decisions on who will enjoy the tax cuts. The budget leaves room for many reductions, including $500 tax credits for children in families with incomes up to $200,000.



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