Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 18, 1993 TAG: 9302180294
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
CLINTON URGES TAX INCREASES
President Clinton asked Americans Wednesday night to accept one of the biggest tax increases in history, part of a tough $499 billion plan to curb massive budget deficits and stimulate the economy. "We must do this together," he said in a pointed overture to Congress."This economic plan cannot please everyone," Clinton said. "If this package is picked apart, there will be something that will anger each of us. But if it is taken as whole, it will help all of us."
The plan mixes $246 billion in tax increases and $253 billion in spending cuts over four years. "Our budget will by 1997 cut $140 billion from the deficit - one of the greatest real spending cuts by an American president," he said.
"If we do not act now, we will not recognize this country 10 years from now," Clinton said. He said the deficit would have grown to $635 billion a year and the national debt would consume almost 80 percent of the gross domestic product.
"The American people know we have to change," Clinton said.
Clinton's speech was delivered in the House chamber, where majority Democrats gave a thunderous welcome to the first Democrat to hold the White House in 12 years.
Republicans denounced the plan as a massive round of tax hikes.
House GOP Leader Bob Michel said, "The American people would do well to remember: When you hear a Democrat call for taxes, do not ask for whom the tax rises - it will rise for you."
"Laudable as [the new peograms] may be, how do we pay?" Michel asked. "The president's answer is: more taxes on everyone."
Clinton's plan would spread pain widely, although the well-to-do would be hit hardest.
The program would impose higher energy taxes, which the administration calculates would raise $71.4 billion by 1998. Most households earning less than $30,000 a year would, according to the Clinton administration, have most of the energy-tax increases offset by government spending programs.
Income tax rates would jump significantly - from 31 percent to 36 percent next year - for families with taxable income over $140,000 and for individuals over $115,000. Clinton said that would affect only 1.2 percent of taxpayers.
A year's freeze would be put on the 3 million federal workers' pay.
Taxes would be raised on Social Security benefits for retired couples earning more than $32,000 and individuals earning $25,000. Medicare payroll taxes would be required on all earnings, compared to the present $135,000 limit.
In all, the package would cut $496 billion from the expected deficit over four years, the largest such reduction program in history.
"I thought it was a good speech, a very positive speech," former presidential candidate Ross Perot said on ABC's "Nightline."
"I would expect the American people would also react favorably to it." He expressed fears, however, that the plan could be undermined by congressional spending.