MSG073G/01 UNITED STATES: Clinton Announces Republican-Style Tax Plan

WASHINGTON, Dic 16 (IPS) - U.S. President Bill Clinton announced tax cuts of up to 60 billion dollars for the middle class over the next five years, in a move toward policies promoted by the opposition Republican Party, revitalised in November elections.

The Thursday night announcement marked a continuing rightward shift by the Clinton administration, which two weeks ago adopted another Republican proposal for a 25 billion dollar hike in military spending over the next four years.

However, political analysts warn that the new tendency may alienate some of Clinton's traditional bases of support, such as unions and the poorer sectors.

Attorney Harry McPherson, who served under former President Lyndon Johnson (1963-1969) said, "the old coalition (of unions and civil rights activists) isn't big enough to win anymore, so whatever he risks alienating, he has no choice but to try to add to it by moving to the right."

However, he warned that "if he goes too far, he loses the true believers, the people who run phone banks and lick stamps."

Tax reductions and defence spending hikes are a departure from the Clinton's policy during his first two years in office, when he promoted much less popular plans of deficit reduction through military budget cuts and new taxes for the wealthy.

While Clinton denies that the new measures are an effort to boost his flagging chances of reelection in 1996, analysts see his change of attitude as a direct result of the resounding Republican victory in November's congressional elections.

The opposition party gained control of both the Senate and the Houses of Representatives for the first time since 1946, with a platform including tax cuts, less public sector spending and an increased defence budget.

Republican Senator-elect Fred Thompson recalled that Clinton favoured tax reductions as recently as two weeks ago.

"We welcome the president if he wants to help us lead America in a new direction. But if he will not not, we welcome the president to follow, because we're moving ahead," he said.

However, Clinton opposed the Republican plan of drastic tax reductions, saying "I know some people just want to cut the government blindly. I know that's popular now, but I won't do it. I want a leaner, not a meaner government."

In studying the Republican plan, Clinton said "my test will be, does the idea expand middle-class incomes and opportunities? does it promote values like family, work, responsibility and opportunities? does it contribute to strengthening the new economy?"

"If it does, I'll be for it," he said.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service