European Stars and Stripes (Newspaper) - January 30, 1992, Darmstadt, Hesse                                Thursday january 30, 1992 the stars and stripes a Page 3 Luau state of the Union Bush seeks to boost Economy several tax incentives included in 93 budget Lay of Washington apr president Bush tuesday sent Congress a $1.52 trillion spending plan that feed a grab bag of tax Breaks for workers Home buyers and corporations in an Effort to resuscitate a lifeless Economy. In a Brief message beginning the 2,000-Page budget Bush called on lawmakers to a play aside partisanship and to join with me in enacting this growth Agenda  but the president in his state of the Union speech tuesday told Congress that if it failed to enact his economic growth package by March 20, lawmakers could expect a a Good fair  the budget message added detail to the tax Breaks for individuals and corporations that Are at the heart of the presidents plan to end what Many economists fear could become the longest recession since the great depression. While Bush tried to Frame his economic program in rhetoric hardening to americans persian Gulf War Victory critics charged the package offered at Best Only a modest fiscal stimulus. The president said he would abide by the 1990 budget agreement with Congress which requires that tax cuts and spending increases be offset so that the deficit wont grow. Although saying the budget meets that goal the administration conceded that its program would cause the deficit this fiscal year to swell to a record $399.4 billion. That increase was blamed primarily on the most sex Fien Sive item in the budget an Effort to pump $25 bilion into the Economy by lowering withholding rates for individual taxpayers. The presidents plan projected that the deficit for 1993, the budget year that begins oct. 1, would fall slightly to $351.9 billion. Both the fiscal 1992 and fiscal 1993 deficits would be far above the record of $268.7 billion set last year. In a Stark sign of How the recession and other economic strains have swelled the deficit the 1993 budget plan projects deficits of $180 billion in 1996 and $181.8 billion in 1997, the year Bush would be leaving office if he wins a second term. Last year Bush had forecast a budget surplus by 1996.bush�?Ts budget other tax initiatives called for in the Bush budget # increase the personal tax exemption by $500 per child and set the personal exemption at $2,300 for 1992. % repeal the luxury tax on big ticket boats and air planes. # allow penalty free withdrawals from iras for student Loans. # create a new Quot flexible Quot Ira with More Liberal withdrawal rules. 0 create Urban a Enterprise zones Quot to Spur inner City development. Make the research and development tax credit permanent. # extend tax Breaks for mortgage Revenue Bonds and Low income housing. As usual the budget Book a its cover red White and Blue a was the size of a Manhattan Telephone directory for 1993, the president proposed spending a record $1,516 trillion and taking in revenues of $1,164 trillion leaving the $351.9 billion deficit. Just As last year the presidents economic forecast on. Which the budget was based expressed optimism that the Economy would soon rebound. Gone however was last years forecast of a Short mild downturn. Instead White House budget director Richard Dar Man wrote that a the euphoria of summer has been displaced by another Winters gloom that has pushed consumer Confidence to a a remarkably Law level. Yet the administrations new forecast declared optimistically that the Economy would begin growing by Spring with the Pace gradually accelerating through the year. The budgets biggest tax change does not need congressional approval. The president ordered the internal Revenue service to lower personal withholding rates March 1. That change will amount to an estimated $175 for a single taxpayer Over the next year. The change is not a tax Cut. Americans who meet tight Back As refunds. Their tax obligations would eventually get the Money the biggest spending Cut was in defense programs. The administration said it would curb budget authority by $50 billion Over five years by reducing or ending production of several weapons systems. Democrats have charged that the military cuts Are not nearly deep enough. They have also attacked Bush a Effort to lower the capital gains tax As a Giveaway to the Rich. Bush a pet proposal to Cut the tax rate on capital gains profits made from the Sale of assets such As stocks was Back in an expanded form with the top rate reduced to 15.4 percent for assets held for at least three years Down from the current maximum of 28 percent rate. Democrats have fought this proposal for three years contending it is a tax Giveaway to the Rich. Bush selection year budget proposed spending increases for a variety of programs including a $2.8 billion for the women infants and children feeding program making it available to 5.4 million people. A $1 billion for programs for the homeless up 6 percent. A $565 million or 13 percent More than this year for Federal h1v-aids efforts. A a 6 percent increase to $9.4 billion to operate the nations air safety system including $2.7 billion for modernizing air traffic control. A a 9 percent increase to $2.2 billion for Federal prisons including space for 4,640 More prisoners. A a $166 million increase to $650 million in support for the superconducting supercollider. The increases were offset by proposals to abolish 246 Federal programs. The administration did not provide examples although officials said Many of them would be repeats of programs Republican administrations have tried unsuccessfully to kill off for years. Bush projected the savings from getting rid of unnecessary government programs at $5  plan reshapes strategic forces expert says by Luke Britt and David Tarrant staff writers Washington president Bush a arms control plan outlined tuesday in the state of the Union address would fundamentally reshape the size and role of americans strategic forces in the Post cold War Era according to Gordon Adams director of the defense budget project. A a you re going to be looking at the most different strategic Force five to 10 years from now that you could possibly imagine a said Adams who runs the Washington based group that monitors . Defense spending. A a we re undergoing a revolution in strategic forces. They re going to be smaller. They re going to be More single warhead. And they Are going to be largely sea based. And Well have done most of it unilaterally a he said. But other experts see Bush a proposed $50 billion in defense cuts which will be spread Over five years As Short sighted with Little tangible savings for taxpayers. A i think this is still somewhat of a cold War budget a said Natalie j. Goldring Deputy director of the British american Security information Council an Independent research organization that analyses Security policies of Europe and North America. A a he a Only talking about cutting the defense budget by 3 percent Over those five years a Goldring said. The Pentagon a five year budget is estimated at approximately $1.5 trillion. A i think most people would say that the decrease in the threat to the . And its interests has been much More significant than those budget cuts would indicate a she said. In his state of the Union address tuesday night Bush called for capping the b-2 stealth bomber program at 20 significantly lower number of warheads and putting most of the warheads at sea and i bet you nine out of ten people on the Street would have said no  what Bush did not mention Goldring said is As important As what was said during his nearly hour Long address. A we w e re undergoing a revolution in strategic forces. They re going to be smaller. They re going to be More single warhead. And they Are going to be largely sea based. And Well have done most of it unilaterally a Gordon Adams planes cancelling the single warhead midget Man intercontinental ballistic missile and stopping production of the my a a peacekeepers missile. Bush also said that if the former republics of the defunct soviet Union agree to scrap All of their land based nuclear missiles Bush would offer further sweeping cutbacks of . Land and sea based warheads. A now obviously All this is in response to what a going on in the former soviet Union and you can say it makes a lot of sense. But its the kind of change we would never have predicted five to 10 years ago a Adams said. A that is just astonishing a he said. A if you had gone Back 10 years ago and said what Are the chances of having a did not hear anything about the advanced tactical fighter or the Navy a ssn-21 sea Wolf submarine a Goldring said. A this surprises  More cuts could be announced wednesday when the Pentagon was to unveil details of the proposed fiscal 1993 defense budget. But Goldring said that she expects Little More than a a incidental cuts to accompany what the president announced. These cuts could include the $2 billion per copy sea Wolf indefinitely delaying the army so Block Iii tank and the Rh-66 commanche Light helicopter. And not All the cuts Bush proposed were real sacrifices she said. The 20-plane Cap on the b-2 is still five planes higher than Congress was willing to approve. The Midge than severely crippled in 1991 by a decision to scrap a Mobile Basing plan was already a dying program Goldring said. A without the Mobile capability the missile was not really any More important to our strategic Security than any other silo based missile a she said. Goldring also pointed out that cruise missile production which Bush said would be halted makes up Only a tiny fraction of the five year defense budget. Adams said Bush a plan was Only an a opening bid that would Likely meet resistance from members of Congress seeking deeper cuts. The $50 billion includes Only about $6 billion from this fiscal years budget Adams said. A and As Correct As he May or May not be about whether that Sas far As one should go it clearly is not As far As Congress intends to go a he said. However Bush indicated in his speech his resolve to go no further saying a a this deep and no  there Are More than three dozen alternative congressional proposals some calling for far deeper cuts of up to $160 billion Over the next five years. Still Bush a plan will not Likely arrive on Capitol Hill dead on arrival. A i think the administration plan will probably drive this whole thing a said a government analyst familiar with the budget. A but Congress is certainly going to have its