Grassley: Tax Cuts May Reach $450 Billion
URL:http://www.washingtonpost.com/wp-dyn/articles/A46098-2003Apr27.html
Reuters
Monday, April 28, 2003; Page A02
Congress could end up passing a tax cut package of as much as $450 billion -- less than demanded by President Bush but more than so far agreed to by the Senate, a key Republican said yesterday.
Senate Finance Committee Chairman Charles E. Grassley of Iowa warned, however, that the $450 billion figure would take some financial juggling.
Bush initially sought a $726 billion tax cut over 10 years. He cut the figure to at least $550 billion after Senate Republican leaders agreed earlier this month to limit it to $350 billion.
Grassley said a $450 billion package could be obtained by offsetting an additional $100 billion in tax cuts with unspecified reductions in spending and by plugging what he described as corporate tax loopholes.
"I think I can say flat out, it's going to be difficult to get to 550," Grassley told "Fox News Sunday."
"It might not be difficult to get to $425 billion or $450 billion. But remember, it's got to be dollar for dollar" in offsets, Grassley said.
Grassley and other Senate Republicans riled the White House and Republicans in the House, shortly before leaving for an Easter recess, by agreeing to limit Bush's tax cut to $350 billion.
Senate leaders said they needed to slash the figure to muster enough votes to win Senate passage of a 2004 federal budget.
Bush, having reduced his proposed tax cut to at least $550 billion, ridiculed the $350 billion figure as "little bitty tax relief."
Sen. George V. Voinovich of Ohio, one of the Republicans who forced their leaders to accept $350 billion, agreed it could be increased with offsets.
Appearing on NBC's "Meet the Press," Voinovich said, "$350 billion is a responsible package, and if the president wants to do more than that . . . let's pay for it. Let's offset it. Let's not just borrow that money" and increase the deficit.
Voinovich said if such offsets cannot be found, Congress should move on the $350 billion package.
Bush plans to meet Tuesday with congressional Republican leaders to discuss his domestic agenda on Capitol Hill, with his proposed tax cut a top priority.
Grassley said Bush could end up with far more than $350 billion if he could somehow convince enough reluctant senators that they should go along with him.
Toward this end, Bush made a visit last week to Voinovich's home state of Ohio in support of a proposed tax cut package of at least $550 billion.
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