European Stars and Stripes (Newspaper) - January 30, 1992, Darmstadt, Hesse                                Thursday january 30, 1992 s t a t the stars and Stripe Union b Page 7housing key to Bush economic plan by the los Angeles times Washington a the economic growth package unveiled in president Bush a state of the Union address tuesday offers Only modest tax Relief to Middle America and instead places its emphasis on the powerful engine of housing construction and the traditional lure of Home ownership to pull the nation out of recession. Much of the initial attention will no doubt focus on Bush a initiative to immediately reduce payroll withholding for 90 million american wage earners and his proposal to increase the personal exemption for dependent children by $500. But in terms of the potential Impact on americans stalled Economy those Broad based measures Are relatively insignificant compared with the presidents proposals for stimulating purchases and sales of Homes and providing new tax Breaks for development. A real estate has led our country out of almost All the Tough times we be Ever had a Bush said in his address to Congress and the nation. A once building starts carpenters and plumbers work and people buy Homes and take out  As a result the most potent tax Breaks Bush is proposing would be aimed directly at the depressed real Bush ignoring health crisis democrats say Washington a president Bush a Flat rejection of National health insurance in favor of tax credits has framed an election year debate and left democrats to charge he is avoiding a health care crisis. A the american people can to get health care Reform without the presidents leadership a sen. Jay Rockefeller d-w.va., said tuesday night after Bush a state of the Union address. A what stuns me is Why he does no to recognize  Bush provided Only the broadest outlines of Nis proposals on health care and promised to provide More details next month. But he took on the democrats by denouncing so called a pay or play Bills backed by leaders in both Chambers that would require employers to provide insurance or pay into a government program for the uninsured. A it will mean higher taxes fewer jobs and eventually a system under Complete government control a Bush said. Rockefeller who led a National commission that recommended such a plan said Bush appeared to be a a buffeted by advisers on various sides of the Issue. The president he said a does not have Core beliefs on the Issue. House majority Leader Richard a. Gephardt d-mo., dismissed Bush a tax oriented proposals As a tinkering at the margins not bold not comprehensive won t contain  Bush said he would help make Basic health insurance affordable for Low in come families by providing a tax credit of up to $3,750 to cover health insurance costs. He said he will propose help for the Middle class through a reforming the health insurance Market and containing health care costs a but offered no details. Democrats denounced that approach in Advance saying it will do nothing to contain soaring health costs or assure coverage to the More than 35 million people without insurance and millions More who fear losing it. Rep. Marty Russo d-ill., author of a plan to set up a single government run health insurance system said a it was not even a band Aid. It was like pouring Salt on a  House minority whip Newt Gingrich r-ga., said Bush was still meeting with estate sector of the Economy a an assortment of incentives for the Ordinary americans who buy and sell Homes and the businesses and investors who finance and build them. Senior administration officials said Bush a real estate proposals would Spur an additional 250,000 Home sales each year in turn creating thousands of new jobs in the battered Home building Industry. Altogether the presidents economic package would add at least 500,000 jobs to the . Economy Over the coming year administration officials said. Although the Overall Cost to the government of the tax cuts included in Bush a economic package a $24.6 billion Over five years a is relatively Small in relation to americans $5 trillion Economy Many of those tax provisions will be tightly targeted at the housing sector. The plan includes a temporary $5,000 tax credit for first time Home buyers penalty free withdrawals of up to $10,000 from individual retirement accounts for purchases of first Homes and creation of a new a and potentially huge a deduction for taxpayers who have suffered losses on the Sale of their Homes in depressed real estate markets. The $5,000 tax credit which would be applicable to any Homes purchased after feb. 1, 1992, would expire next january and would be credited in equal increments against taxes in both 1992 and 1993. But Bush Hopes to win approval of the penalty free Ira withdrawals and the deductibility of losses As permanent changes in the tax Laws. In addition Bush once again asked Congress to approve a Sharp Cut in the tax on capital gains. Although the tax Cut proposal would reduce the effective top rate to 15.4 percent for a wide Range of investment assets the real estate Industry is one of its biggest backers. By contrast Middle americans who do not own their own Homes or plan to buy one soon would find relatively Little in the Bush package for them. The $500 expansion of the personal exemption for children under the age of 18 a which would be phased out for higher income families a would provide a minor tax break tax experts say. For Middle income families in the 28 percent tax bracket the expanded exemption would be Worth Only $140 per child per year. For those in the 15 percent bracket the bigger exemption would be Worth Only $75 per child. The presidents decision to immediately reduce payroll withholding for 90 million american wage earners would reduce Federal revenues by $25 billion this year and add an estimated $350 to the average american family stake Home pay Over the coming year. Excerpts from speech up file House minority whip Newt Gingrich republicans on the health Issue. A the is moving in the right direction which is away from socialism and toward free markets a Gingrich said. White House officials have said Bush May propose higher medicare premiums for the affluent and a tax on employer paid health benefits. But he made no mention of them in his speech. Bush a speech was delivered against a backdrop of divisions within the ranks of congressional republicans and the administration Over the direction and financing of health care proposals. A of Republic acted sharply in Advance of the speech against anticipated proposals on medicare and employer Paia health benefits which would hit higher income americans who often make up their Republican constituency. But it was not a party line Issue a democrats and labor unions opposed those ideas As Well. A i think its a very ominous sign for Bush a said John Rother legislative director for the american association of retired people which is pushing for health care Reform. A if he can to even get the most Loyal segment of Congress republicans in the House on Board for this approach then its sure not going  a this is George Bush a medical darwinism not survival of the fittest but survival of the richest a said Ron Pollock executive director of families Usa a group advocating Reform. By the associated press Here Are some highlights of president Bush a state of the Union speech tuesday night the cold War a in the past 12 months the world has known changes of almost biblical proportions. And even now months after the failed coup that doomed a failed system i am not sure we have absorbed the full Impact the full import of what happened. But communism died this year. The biggest thing that has happened in the world in my life a in our lives a is this by the Grace of god America won the cold War. A world once divided into two armed Camps now recognizes one sole and pre eminent Power the United states of  the reduced threat a and so now for the first time in 35 years our strategic bombers stand Down. No longer Are they on a round the clock Alert. Tomorrow our children will go to school and study history and How plants grow. And they wont have As my children did air raid drills in which they crawl under their desks and cover their Heads in Case of nuclear War. My grandchildren done to have to do that and wont have the bad dreams children had once in decades  the Gulf War a a year ago tonight i spoke to you at a moment of High peril. American forces had just unleashed operation desert storm. And after 40 Days in the desert skies and four Days on the ground the men and women of americans armed forces and our allies accomplished the goals that i declared and that you endorsed we liberated Kuwait. A soon after the Arab world and Israel sat Down to talk seriously and comprehensively about peace a an historic first. And soon after that at Christmas the last american hostages came Home. Our policies were  military cuts a this weekend i will meet at Camp David with Boris Yeltsin of the russian federation. I have informed president Yeltsin that if the common wealth a the former soviet Union a will eliminate All land based multiple warhead ballistic missiles i will do the following a we will eliminate All peacekeeper missiles. We will reduce the number of warheads on minuteman missiles to one and reduce the number of warheads on our sea based missiles by about one third. And we will convert a substantial portion of our strategic bombers to primarily conventional use. A president Yeltsin a Early response has been very positive and i expect our talks at Camp David to be  on defense needs a we cannot repeat the mistakes made twice in this Century when armistice was followed by recklessness and defense was purged As if the world were permanently Safe. I remind you this evening that i have asked for your support in funding a program to protect our country from limited nuclear missile attack. We must have this Protection because too Many people in too Many countries have Access to nuclear  the Economy a the primary problem is our Economy. There Are some Good signs inflation that thief is Down and interest rates Are Down. But unemployment is too High some industries Are in trouble and growth is not what it should be. The Power of America rests in a stirring but simple idea that people will do great things if Only you set them free. Well we re going to set the Economy free for if this age of miracles and wonders has taught us anything its that if we can change the world we can change America. We must encourage investment. We must make it easier for people to invest Money and creat6 new products new industries and new jobs. We must Clear away the obstacles to growth a High taxes High regulation red tape and yes wasteful government  Long term policy a we need Long term improvement in our economic  a we must be the worlds Leader in education. We must revolutionize americans schools