European Stars and Stripes (Newspaper) - February 14, 1991, Darmstadt, Hesse                                Thursday february 14, 1991 the stars and stripes Page 13commentary David Brode fairness Issue emerges from budget debate in All of Washington there May not be two people whose minds work faster than Barney Franks and Dick Darmand a. Frank the democratic congressman from Massachusetts and Darman the director of the office of management and budget had an Exchange at last weeks House budget committee hearing that previewed what will be a major a and useful political debate. In his introduction to president Bush a budget for next year Darman said the administration was offering a an important new emphasis for Reform increasing fairness in the distribution of benefits reducing subsidies for those who do not need  a that passage set off alarm Bells among democrats who recognize that the a a fairness franchise is one of the pillars of their political Power. In the past decade More and More voters have been telling the pollsters that they think republicans Are better on defense and foreign policy and fighting inflation and promoting economic growth. But just As consistently those same voters say they think that the gop is the party of the Rich while democrats represent the Middle class and poor. Darmand a grab for the a a fairness Issue went beyond rhetoric. Two of the highlighted proposals in the Bush budget Are designed to Cut off farm subsidies to people with More than $125,000 in non farm income and to raise the medicare premiums for physician and outpatient services paid by people with equally High incomes. Bush also proposed shifting More school lunch and College Aid funds to people from Low income families. The immediate changes would be modest a a few Hundred million dollars in a system when individuals receive More than $200 billion a year in government checks. But Darman said he wanted to a Start a debate on the principle of Means testing government programs. And democrats recognize that is a Challenge they cannot ignore a and might just turn to their advantage. So when Darman came before the budget committee Frank was waiting. He got Darman to acknowledge that the a a losers in his proposed school lunch and College Aid reforms would be families with incomes Well below the $125,000 cutoff he was proposing for farm and med real benefits. Frank said the break Point for school lunches would come when families reached the $21,000 level and for College Aid at about $40,000 a right at the heart of the Middle class. But Darman was not finished. A i would like to make an offer in very Good Faith a he said inviting Frank and other congressional democrats to find ame income level a higher than $20,000 and lower than $125,000�?� and then a apply it uniformly across the boards a As the cutoff Point for a a whole Range of mandatory Benefit programs apart from social  a i think it is absolutely sound on the merits to have some general Means testing principle except with respect to social Security a he said a and i believe Genus Heiy that the political system will be forced in that direction. Over the next  Quot Darman is far from the first to make that judgment. In the 1988 democratic presidential primaries former Arizona gov. Bruce Babbitt argued for Means testing entitlement programs. In an Era of scarce governmental resources and unrelenting demands for Public services he said that subsidies for the Rich have no justification. But there a a problem for democrats As rep. Jim Cooper d-tcnn., reflected at the hearing. A by All of a sudden taking medicare arid making it a welfare program a he told Darman a for taking farm programs and making them a welfare program you would be undercutting the National consensus that has built and preserved these programs. A. With your ingenuity you May Well be launching a very powerful concept to stigmatize the beneficiaries of big government Darman angrily rejected that suggestion but Coopers concern has Strong historical roots. Over the years they controlled government democrats built political support for their spending programs by targeting them broadly a not narrowly. A and giving millions of Middle class voters reasons to support programs that were helpful to them but vital to the poor. In a time of chronic deficits few democrats believe that policy can continue. But to win the debate they need to broaden the definition of a fairness a As Senate majority Leader George Mitchell a Mainc did Las week. A a.  .����. A v. A a Mitchell released a Senate democratic Agenda that Points out that a decade of Republican economic poli a cies have made this a nation a in which the richest 20 percent of All americans earn More than All the rest of our people  he pledged to push for policies that will a Lessen the tax Burden on working families while asking the wealthy a to Bear a greater share Quot of the Bills. A framed that Way the fairness debate Darman wants is not one the democrats need fear. And More important its one from which the country can Benefit. C Washington Post writers group. A a Tom Wicker the Case against statehood for puerto Rico a i want puerto Rico to become the eluding some that usually vote Republic statehood caused the loss of those Adan term Bonanza. 51st state a president Bush has said. Does can and the puerto rican delegation he realize that would mean fewer puerto might Well be All or mostly democratic. Picans in private sector jobs More on from a a broader perspective More a a  additional Cost of Over the Island insists on maintaining its $17 billion to the . Treasury. Spanish culture which would make it the a. Attorney general Dick Thornburgh Only state with Spanish As its official Lan / told Congress this week that the adminis Guage. Even puerto Rigan republicans 1 traction favors a plebiscite in which puerto agree on that a though Mainland re pub j Picans might Well vote for statehood Laicans hardly can be enthusiastic about t sen. Bennett Johnston of Louisiana such an exception. A the chairman of the committee preparing economically statehood would be a did plebiscite legislation says puerto i cans Saster for the Island. It would mean the j Choice in that vote would be a morally Joss of the Commonwealth of puerto of binding on Congress. _ _ Rico a exemption from . Taxes under Thornburgh questioned the cons Titu Section 936 of the internal Revenue .1 tonality of the Only other Likely status Al code. No state is entitled to claim such an a iterative a an improved virtually Auton exemption which has been applicable to Otmous version of the present puerto puerto Rico since before Commonwealth 1 rican commonwealths a a  status was achieved in 1952. That a one Independence is not believed Zahave suf. Good reason the islands annual per capita v Focient support to be a real possibility for income has risen since then from a few j the islands Hundred dollars to More than $6,000 last Bush a desire for statehood is hard to year. Understand although the islands re pub not Only would statehood bring the 1 lican party also favors it. From a narrowly Federal income tax to puerto Rico a peat partisan Point of View puerto Rico As a Marwick study estimated 72 percent of. State would rate two senators and five or the companies that have put about 2,000 six members of the House. That a larger Industrial plants on the Island because of than a number of present delegations in its tax advantages might Cleave once tages. That would mean the flight of statehood would allow the islanders to 80,000 to. 145,000 jobs the study Sug participate in presidential elections and tested. To Send a voting delegation to Congress. A congressional budget office report Many puerto Picans seem also to believe similarly found that if puerto Rico a com it would magically produce for them a Liv Mon wealth tax advantage were lost in ing Standard equal to that of Mainland employment a averaging 14.6 percent americans whose per capita income is even now a would increase by 100,000 far higher a even in Mississippi the within the decade under statehood poorest of the current states. 6. Puerto Rico a Gross product would fall by Commonwealth supporters such As 10 percent to 15 percent in the same pen gov Rafac Hernandez Colon believe of they can win a plebiscite though polls under the prevailing Commonwealth now give statehood a narrow Lead. They status How Tver economic growth is pro Hope Commonwealth status can be so dejected at a real annual rate of 2.5 percent of income Tjie Senate a plebiscite legislation to 4 percent. That a important to other that if voters opt for it Congress could americans because puerto Rico already not change it in the future. But Thorn buys More Mainland goods than Brazil Burgh said the Constitution requires , Chile Argentina and Colombia combined territories other than states to be con $9.4 billion in 1989. Trolled by Congress therefore he argued Why would puerto Picans opt for Congress could take away Commonwealth statehood if it meant they had to pay . Status any time it chose income taxes while their Economy was if sustained by Bennett Johnston a shattered one reason is that Many is committee that a a telling argument la Jers Are too poor to pay income tax against Commonwealth and for statehood and statehood would make Many eligible _ and one that raises the question Wyeth for nearly doubled welfare benefits her Bush grasps the real consequences of causing an estimated $17 billion Rise in what he says he wants for puerto Rico Federal outlays for puerto Rico a Short c Newport ctr ies