GimgrieltBars Tn Rise To Obtain Budeet Deal: GOP Whip Seeks lo Sway While House
.House Minority Whip Newt Gingrich (R-Ga.) sought yesterday to mfcvc the Wliitc House away from any budget deal involving a tax hike and warned that an increase in government revenues would make a recession more likely and work to tlffi advantage of the Democrats.</br></br>.In a highly partisan assault, Gingrich called for several tax cuts and declared that the "number one goal of the Republican Party should be toåÈhelp the economy avoid a recession despite the Democratic leadership of Congress.Û \7n a comment sure to make bi-liartisan negotiations more difficult, Gingrich also strongly suggested that Senate Majority Leader George J. Mitchell (D-Maine) has actively sought to foster a major Economic downturn. ÛÏWe have an economy that is succumbing to a recession which i believe Senator fyljtchel! has frankly been planning for,Û he said.</br></br>^Gingrich made his remarks at an afternoon news conference and elaborated on them in an evening speech at the Heritage Foundation. rvThe minority whip argued that tfe worsening condition of the eiconomy and the increase in oil prices following the Iraqi invasion of Kfiwait have changed the circumstances surrounding bipartisan budget negotiations since President BUsh backed away from his "no new taxes" pledge in June.</br></br>'^Indicating that he is likely to oppose any tax increase, Gingrich yesterday called for five separate tax tjits to stimulate the economy. ^These were a substantial increase in the $2,000 deduction for</br></br>dependents, a revival of individual retirement accounts and a liberalization of their use to cover education and first-home down payment costs, a business equipment investment tax cut, a reduction in the capital gains tax rate to 15 percent and business tax credits for investments in urban "enterprise zones." Gingrich argued that the loss in revenues from these tax cuts, which he did not estimnlc, would be more than justified because a recession would cost the government much more. While describing Bush's decision to abandon his ÛÏno new taxesÛ pledge as "throwing an interception,Û Gingrich as recently as last month said he was ÛÏprepared to sponsor and support raising taxes,Û according to participants in a GOP strategy session. Yesterday, however, lie said "I would find it very hard to understand an argument for a tax increase in the face of the weak economy.Û