European Stars and Stripes (Newspaper) - January 30, 1992, Darmstadt, Hesse                                Of Hespos m vol. 50, no. 290 350 thursday january 30,1992 d 8693 a going to lift this nation Bush pledges in address Washington apr president Bush on tuesday night proposed election year tax Breaks and business incentives to revive americans Economy and vowed a a we re going to lift this nation out of hard  Bush also announced dramatic cuts in the . Nuclear Arsenal. In his state of the Union speech the glory a he said president challenged the Democrat controlled Congress to Back his economic programs by March 20 or face a political fight. Invoking persian Gulf War rhetoric he vowed the recession a will not  the Centrepiece of his economic plan was a bid to put More Money in Peoples paychecks by lowering tax withholding rates a even though it would mean smaller refunds a year from now. Bush said it would pump $25 billion into the Economy. It would increase take Home pay by an average of $300 for More than 90 million wage earners the White House said. Bush also called for a tax credit of up to $5,000 for firs time Home buyers and tax credits and deductions to help Low and Middle in come americans obtain health insurance. He proposed a substantial boost in tax Breaks that businesses can claim for depreciating equipment and insisted anew on a capital gains tax Cut. In a nationally televised address Bush discussed the benefits of a reduced military threat from the disintegrated soviet Union. A the american taxpayer bore the Brunt of the cold War Burden and deserves a hunk of the at a glance Here Are some main Points from the proposals president Bush outlined in his state of the Union address a immediately adjust income tax withholding tables to boost americans take Home pay. It would reduce the size of next year s refunds but pump $25 billion into the Economy Over the next six months according to administration estimates. A Cut defense spending by $50 billion Over this and the next five years. A freeze Federal spending on most Domestic programs at current Levels. Benefit programs like social Security would be excluded. A provide tax credits and vouchers to help Low and Middle income families buy health insurance up to a maximum of $3,750 per family. A give first time Home buyers a tax credit of up to $5,000 for Homes built this year with the credit spread Over two years. A allow first time Home buyers to withdraw up to $10,000 from individual retirement accounts without penalty. Bush said he would ask russian president Boris n. Yeltsin on saturday to agree to eliminate All land based multiple warhead ballistic missiles. He said Yeltsin a initial response was very positive. If Yeltsin agrees Bush said the United states will eliminate All my missiles reduce the number of warheads on minuteman missiles to just one and Cut the number of warheads on sea based missiles by about one third. He also ordered a halt to production of warheads for Trident missiles a marking the first time since 1945 that the United states has no nuclear weapons in production. The president proposed to Cut defense spending by $50 billion Over five years and use the savings to finance tax reductions. Bush a plan also would freeze Federal spending on most Domestic programs at current Levels. Benefit programs such As social Security and medicare would be exempted. The democrats sought to portray the tax cuts certain a amps to come in terms of haves is. Have not. A a. We seek a fundamental change from the unsuccessful economic policies of the past 12 years Quot House speaker see Bush on Page 2 president Bush gives the state of the Union speech As vice president Dan Quayle  a democrats split on whether Bush offered too much or too  2 a Bush seeks to boost Economy with several tax  3 a Pentagon a new budget alters . Strategic nuclear posture Page 6 a housing construction called key to Bush a economic  7 a two columnists appraise Bush a state of the Union speech Page 13 defense faces deep cuts by Chuck Vinch Washington Bureau Washington a president Bush called for halting production of the controversial b-2 bomber at 20 planes and making major changes to the nations strategic nuclear missile Arsenal in his state of the Union address tuesday night. Seeking to maximize a a peace dividend to pay for Domestic initiatives this election year Bush outlined a plan that would save $50 billion in military spending Over five years. He also threw Down a Challenge to anyone looking for even heavier cuts. A these cuts Are deep and you must know my resolve a this deep and no deeper he said. Bush announced a number of unilateral . Actions some involving weapons with tangled histories in con Gress. The decision to limit procurement of the b-2 capped a lengthy congressional fight Over the planets usefulness in the Wake of the soviet collapse. The air Force once planned for 132 b-2s. Building 20 would make the plane the most expensive in history by far a More than $2 billion each including research and development costs. Bush also called for scuttling the midget Man single warhead intercontinental ballistic missile program. Production of new warheads for sea based ballistic missiles new my a a peacekeepers missiles and advanced cruise missiles also would cease under Bush a plan. Bush said he is prepared to go further if russian president Boris Yeltsin is willing to take similar actions. The two leaders Are scheduled to meet this week see defense on Page 2