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

DATE: THURSDAY, May 13, 1993                   TAG: 9305130196
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: NEW YORK                                LENGTH: Medium

DEFICIT FUND URGED TRUST WOULD HOLD NEW-TAX REVENUE

"The time has come to prove that when we say we're going to do something with the people's money, we actually do it," the president said.

"After 12 years of rising deficits and Americans feeling deceived about the issue," Clinton said, "I don't blame the people of this country for being distrustful about what they hear from Washington when it comes to bringing down this deficit."

Republicans were skeptical of his plan.

Senate Republican Leader Bob Dole called Clinton's proposal "just a gimmick." He said, "The American people don't care where new taxes go. They don't want them, period."

Clinton, trying to build support for his economic plan by tapping into the deficit-reduction theme popular with Ross Perot and his followers, borrowed the idea from proposals already circulating in Congress.

Practically speaking, the trust fund wouldn't do much more than is already required under Congress' complicated system of "budget reconciliation," which requires spending and taxes to fall within agreed-upon limits.

It also would not reduce the deficit any more than is already planned, about $500 billion over five years.

However, supporters hope taxpayers will view the trust fund as a legally binding contract that locks in deficit reduction.

"This is a legal guarantee on what the budget reconciliation is supposed to do," said Gene Sperling, the president's deputy assistant for economic policy.