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

DATE: FRIDAY, May 14, 1993                   TAG: 9305140085
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Los Angeles Times
DATELINE: WASHINGTON                                LENGTH: Medium

PANEL OKS TAX RAISE

In a major advance for President Clinton's economic program, the House Ways and Means Committee approved a bill Thursday that would produce one of the biggest tax increases in history and is designed to cut the federal deficit by $300 billion.

The measure, which cleared the Democrat-dominated panel on a 24-14 party-line vote, would raise rates on top-bracket income earners, impose a new energy tax that would be heavily felt by middle-income Americans and increase an array of business taxes. Smaller companies would get new tax incentives to expand investments.

Overall, the legislation would require net tax increases of $246 billion and spending cuts of $54 billion over the next five years. It also would provide for tax breaks during the period of $80 billion as part of the president's plan to promote growth and tax equity.

With the House expected to consider the bill before its Memorial Day recess, Democratic leaders and the White House have begun a major effort to see that the legislation is approved.

Its fate in the Senate is highly uncertain because of determined opposition from Republicans and some moderate Democrats. Sen. David Boren, D-Okla., a key Democrat on the Senate Finance Committee - the counterpart of Ways and Means - said Thursday that he wanted to rewrite the bill's energy tax provisions.

"This is the first step in getting our economy straightened out," said Rep. Dan Rostenkowski, D-Ill., chairman of the Ways and Means Committee. "The president asked for major deficit reduction and, as hard as it was, I think we have given it to him."

Republicans were effectively frozen out of the process because the final version of the bill was fashioned privately by Democrats on the panel. They protested in vain, and were rebuffed on seven attempts to amend the measure.

The committee's bill would provide about three-fifths of the five-year $500 billion deficit reduction that Clinton hopes to achieve through tax increases, deep cutbacks in defense spending and trims in other federal programs. Republicans have insisted that Clinton "cut spending first" to reduce the deficit and deplore tax increases as a threat to economic recovery.

by CNB