Daschle- Don't mix political agendas with economic aid

WASHINGTON -- Any plan to boost the weakened U.S. economy should be temporary, aimed at the greatest need and not become bloated in cost through add-ons driven by a political agenda, Senate Majority Leader Tom Daschle, D-S.D., said Saturday.

A day after the Republican-led House Ways and Means Committee approved a $100 billion package dominated by tax cuts, Daschle used the weekly Democratic radio address to urge President Bush and GOP congressional leaders to work toward a compromise reflecting those principles.

"Once again, we are called to put aside politics and work for the good of the nation," he said. "It is essential that both parties resist the temptation to use the economic package as a vehicle for other agendas."

Democrats unanimously opposed the GOP package in the Ways and Means Committee on Friday, arguing that it contained far too much business tax relief and not enough help for the unemployed. It cleared the panel on a party-line, 23-14 vote, and the full House may take it up next week.

At the White House, spokesman Ari Fleischer said the measure "includes some items the president did not ask for" in his proposal for a plan of between $60 billion and $75 billion.

"He wants to work closely with the Democrats on this ... it's the beginning of the process," Fleischer said.

Economic tonic

Republicans portrayed the legislation as a much-needed tonic for an economy still reeling from the shock of the Sept. 11 terrorist strikes. It includes Bush's major priorities, including the new round of rebate checks and accelerated income tax cuts, and effectively reduces capital gains taxes as sought by GOP conservatives.

Daschle said some tax relief was appropriate, but the measure also should provide spending to "strengthen our homeland defense by improving public health, transportation safety" and other security needs.

There are some areas of common ground in the House plan -- estimated to cost $99.5 billion in 2002 and $159.4 billion over 10 years -- starting with the rebate checks.

The rebates would be intended for an estimated 30 million workers whose main federal tax liability is the payroll tax that finances Social Security. Those workers did not qualify for the earlier checks included in the recently enacted 10-year, $1.35 trillion tax relief measure.

The maximum amounts of the checks would be $300 for individuals, $500 for heads of households and $600 for married couples filing jointly -- identical to the previous checks. Taxpayers who got partial rebates this summer would get another check to make up the difference.

For the unemployed, the House measure includes $9 billion in flexible grants to states that could be used for unemployment benefits, paying health insurance premiums for laid-off workers or other needs. Workers also could withdraw tax-free money from retirement accounts to pay health insurance premiums.