GOP Tax Bill Draws Bitter Criticism

The White House and Congress are on a collision course as both sides try to build public support for tax cuts and future spending plans that will affect education.
The House and Senate, in largely party-line votes, approved a massive $800 billion tax cut in early August that critics say would eat up most of the projected federal surplus during the next decade. They complain that the plan, if enacted, would provide tax breaks for the wealthy at the risk of jeopardizing Social Security, Medicare, and education programs.
"I have seen a lot of political things, but I have never seen a sham like the one that we are trying to pull on the American people today," says Rep. Charles Rangel (D-N.Y.), a senior Congressional Black Caucus member, during floor debate.
Republicans countered that their plan would return money to taxpayers — not pump more money into wasteful federal programs. They also noted that their tax package provides some benefits for education — up to $20 billion in new tax credits affecting student loan payments, education savings accounts, and workers who need training to keep their jobs.
President Bill Clinton will veto the package, the White House says, because it will jeopardize programs for senior citizens, the poor and children. The plan is "risky and plainly wrong for America," Clinton says.
Meanwhile, all the debate over tax policy is leaving little time for consideration of fiscal year 2000 appropriations bills for education and other programs. The House and Senate adjourned for August recess without even issuing a proposal on how to divide limited federal dollars for education and human service programs after Oct. 1.
The lack of action has left most advocates predicting that Congress will resort to short-term funding resolutions to keep government programs operating after Oct. 1. 
Education advocates remain worried about the status of appropriations because Congress has not moved to lift tight spending caps on domestic spending enacted as part of a balanced budget plan in 1997. Democrats and a few Republicans have argued for a lifting of the caps because of the growing government surplus and what some consider an unacceptable alternative — deep cuts in domestic spending.
One possible middle ground is for Congress to "forward fund" education programs next year using expected government revenue for the 2001 fiscal year. One advocate says the GOP is considering such a maneuver, which he describes as a gimmick that leaves programs on unsure footing.