VOTING FOR THE CUT

	August 5, 1999
	Congressional correspondent Kwame Holman provides an update on the tax debate and final vote in Congress.

ELIZABETH FARNSWORTH: Republicans in Congress put their tax cuts up for a final vote. Kwame Holman reports. KWAME HOLMAN: It's become something of a tradition on Capitol Hill. Whenever Congress is about to vote on an major issue, proponents and opponents stage competing rallies to hail their respective positions. And, in the case of the Republicans' $792 billion tax cut plan, the rallies went ahead even though the issue has dominated political debate for weeks. REP. DENNIS HASTERT, Speaker of the House: We have a good deal for the American people, and it's the tax relief bill that we intend to vote on today. It's a fair, responsible and balanced tax relief bill. It's fair, because it gives every American tax relief. KWAME HOLMAN: The Democratic rally was held indoors and featured President Clinton. PRESIDENT CLINTON: We ought to figure out what is it we have to spend to educate these kids here, to provide for the national defense, to invest in medical research, to do the basic things. Then we ought to ask ourselves how much is left, and whatever it is, we ought to give it back to the American people in a tax cut. That's the way we ought to do it. (Applause) KWAME HOLMAN: Details of the tax cut plan were negotiated by House and Senate Republicans. They include a one percentage point reduction in each of the three-income tax rates, a reduction in personal capital gains tax rates, a reduction in the so-called marriage penalty tax, and a phase out of inheritance taxes. REP. KAY GRANGER, (R) Texas: This bill isn't really about numbers and figures or phase-in and credits. This bill is about the American people, their hopes for the future and their dreams for their children. REP. DAVID BONIOR, Minority Whip: What they're doing is playing Russian Roulette with the whole U.S. economy, and it's our money that they're gambling, our Social Security, our Medicare, our education, our future. KWAME HOLMAN: When the tax cut debate began in the House today, some members looked for new and different ways to make their arguments. Visual aids were a popular choice. SPOKESMAN: I yield one additional minute to the gentleman - SPOKESMAN: The gentleman is recognized for one additional minute. SPOKESMAN: -- with a chicken. SPOKESMAN: Social Security and Medicare don't enjoy the benefits of the chicken manure producers. They get plucked clean. KWAME HOLMAN: And some members, having heard the same arguments repeatedly over the past three weeks, resorted to good-natured ribbing. REP. CHARLES RANGEL, (D) New York: I have seen a lot of political things, but I've never seen a sham like the one that we're trying to pull on the American people today. There is not a Republican in this House of Representatives that can look into their constituent in the eye and say that this bill is going to become law. REP. DAVID DREIER, (R) California: I am convinced that there is no better expert at putting together a tax increase bill than my friend standing in the well, and I want him to know that, Mr. Speaker, if we ever, ever on this side were to consider any kind of tax increase, my pal from New York is the first person to whom I would look for direction and advice and counsel on doing just that. REP. CHARLES RANGEL: Everybody wants a tax cut. REP. DAVID DREIER: They're ready for you. REP. CHARLES RANGEL: Everybody wants a tax cut, but some of us believe that you pay off your debts first. REP. DAVID DREIER: And that's what we're doing. REP. CHARLES RANGEL: You can't pay off your debts, take care of Medicare, take care of - REP. DAVID DREIER: -- in the next five years - by a six to one ratio --keep fighting for those tax increases, Charlie. KWAME HOLMAN: No matter which direction the debate took, it always seemed to return to an argument over who would benefit most from the tax cuts. REP. JOHN INDER, (R) Georgia: The top 1 percent of the income earners in this country earn 17 percent of all the income and pay 32 percent of all the taxes. The bottom 50 percent of the income earners pay 4.8 percent of all the taxes. We now have 40 million American families that pay no income taxes. And that's who the Democrats want to help. REP. JOHN OLVER, (D) Massachusetts: The one million, one million wealthiest families whose income is greater than $300,000 per year will get about $1,000 a week of tax breaks. But for the 120 million American families whose income is under $125,000 a year, they're going to get enough to buy a cup or two of coffee a week so that they can stay awake while they're working their double jobs. SPOKESMAN: This is a five-minute vote. KWAME HOLMAN: Republican leaders had assured themselves of the support of most party moderates by including a provision in their bill making the tax cuts dependent on annual success in reducing the national debt. With that, the Republican tax cut bill passed on an almost straight partisan vote. But on the Senate side, a much closer vote was expected. Republican leaders weren't sure they could hold the support of their moderates. And Bob Kerrey, one of four Democrats who voted for an earlier version of the tax cuts, today announced he would vote against the revised plan. SEN. BOB KERREY, (D) Nebraska: If Republicans want to change the law, then they've got increase the tax benefits that will go to people with lower income taxes right now. We're not trying to come in here with any kind of social engineering package, Mr. President, we're trying apply a standard of fairness. So as I have said, I have great respect for the chairman of the Finance Committee. I believe that he did attempt to try to apply a standard of fairness, and that, in my judgment, his package passed the test, and I voted enthusiastically, yes. But the Conference Committee report, Mr. President, does not pass that test. It does not pass the test of fairness. And so I enthusiastically and confidently vote no on it. KWAME HOLMAN: In fact, all four previously supportive Democrats appeared ready to vote against the plan. But Republicans seemed to be holding just enough of their own votes to pass it. SEN. DON NICKLES, (R) Oklahoma: Are we going to allow one-fourth of the surplus, are we going the allow the taxpayers to keep it? Or are we going to insist on that money going to Washington, D.C. and Washington spending it? And there's no limit on the amount of demands that we have on spending other people's money. We can spend it all. It would be quite easy. It's the easiest thing to do. Or we can say, "we have a significant surplus. Let's allow people to keep more of it." And we do that. And we've come up with a bill that I believe is fair. It's balanced. I think it's a good tax bill. It's a tax bill for taxpayers. KWAME HOLMAN: The Senate vote on tax cuts was scheduled for later this evening.