Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: House leaders get elderly care plan ready for Clinton Date: Fri, 30 Oct 92 15:33:28 EST Message-ID: \SE A;NATION;NEWS ANALYSIS \HD House leaders get elderly care plan ready for Clinton \BY Donald Lambro \CR THE WASHINGTON TIMES Democratic leaders have introduced legislation that would substantially raise inheritance and Social Security taxes to pay for a long-term-elderly-care plan that they hope will be signed into law if Bill Clinton becomes president. The Democratic plan, which was introduced in the House and Senate in the spring and was revised weeks later to remove its tax proposals, has sparked a political furor in the closing days of the presidential campaign. Republicans and special-interest groups such as the Farm Bureau are leading the attack. They say the plan is the kind of action middle-class taxpayers will face if Democrats control Congress and the White House. One of the most controversial provisions in the original version of the bill would result in a major increase in the inheritance tax by cutting the state tax-exemption threshold on estate taxes from $600,000 to $200,000 and by lowering a tax credit on estate and gift taxes from $192,800 to $54,800. Other little-known features in the original measure were a 0.5 percent increase in Social Security payroll taxes for employers and employees on wages exceeding $5,000 and a 0.75 percent increase on the self-employment tax. The bill would raise taxes by 2.5 percent on unearned income, including Social Security benefits, interest on individual retirement accounts and pensions. "If they control both the White House and Congress, they have made it clear in this plan that they are seeking to raise taxes on the middle class, and this legislation would begin taxing those making $5,000," Sen. Malcolm Wallop, Wyoming Republican, said yesterday. But the Clinton campaign denied yesterday that it supports the bill or the taxes in it. "Bill Clinton has never supported and does not support an increase in the estate tax," said George Stephanopoulos, Mr. Clinton's communications director. "Governor Clinton never supported this bill, and it does not even exist anymore." "They're lies, damn lies that Republicans tell about taxes when Republicans are behind in the polls," said Gene Sperling, Mr. Clinton's economic policy director. But Republicans noted yesterday that Mr. Clinton has called for a long-term-care program in his economic plan, "Putting People First," though he does not say how he will pay for it. "If Clinton gets elected, he and the Democrats in Congress are going to have a mad rush to pass his program in the first 100 days, and they'll be looking for tax revenue to pay for his national health care program and all the other stuff," said Sen. Steve Symms, Idaho Republican. "These are the kind of taxes that will get passed in the middle of the night." The bill was introduced April 9 by Senate Majority Leader George Mitchell of Maine and a group of his Democratic colleagues, including John D. Rockefeller IV of West Virginia, Edward M. Kennedy of Massachusetts, Barbara Mikulski of Maryland and Donald Riegle of Michigan. In his April 9 remarks in the Congressional Record, Mr. Mitchell said tax financing for such a "comprehensive new program would have to be broad-based." He said the bill could not "be enacted this year," presumably because it would face a certain veto from President Bush, who has said he would veto any new taxes. The bill was introduced in the House the same day by Majority Leader Richard Gephardt of Missouri; it was co-sponsored by a number of other Democrats. But the bill was withdrawn three weeks later, and Mr. Mitchell introduced a substitute in the Senate. "This is in lieu of an incorrect version," he said May 26. In the new version, the lengthy tax provisions were gone. In their place were 13 lines that set forth three requirements for the bill's financing: The taxes must be broad-based, must be progressive and must hit every segment of the population equally. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM