European Stars and Stripes (Newspaper) - February 18, 1993, Darmstadt, Hesse                                Thursday february 18, 1993 state of the Union the stars and stripes Page 7leaders find Public doubting Clinton by the new York times Washington a a Day before president Clinton a economic address to Congress lawmakers said tuesday that Many of their constituents arc voicing scepticism and fear about what the president plans. While polls indicate that the Public is open to Clinton a economic ideas Many lawmakers who returned to the Capitol after touring to Cir states during a we Klong recess concluded that his support May be thin and tentative. Reactions varied from Region to Region when it came to the details of the administrations expected proposals for new Energy taxes or cuts in entitlements. But lawmakers said voters almost universally worry that the White House and Congress arc asking for sacrifice but arc not really serious about deficit reduction. A people arc ready to sacrifice a a said sen. Russell d. Fingold d-wis., who strongly supports Clinton. A but the leading concern is that the Money saved from spending cuts wont be used for new  sen. Dennis Deconcini d-ariz., a conservative who is a swing vote on economic policy said he came away surveys show some support for tax boosts Washington up a americans Are willing to accept More taxes but there Are limits a pair of polls shows. A Usa today can Gallup poll of 1,003 adults conducted Friday through sunday shows 86 percent support raising tax rates on families making More than >200,000, and 62 percent support increasing tax rates on businesses and corporations. But a new York times lbs poll of 1,154 adults conducted feb. 9-11, draws the limits a Little closer to Home. Asked whether they would be willing to pay $100 a year More in taxes to reduce the Federal by act deficit 58 percent said yes and 39 percent said no. But when the stakes were raised to $500 a year the naysayers jumped to 84 percent with Only 14 percent sticking to their willingness to sacrifice. The times lbs poll also showed that 57 percent oppose a tax on All forms of Energy like electricity gasoline and Home heating Oil with 41 percent la such a tax. Respondents were evenly split voc question of increasing the portion of social Security line and Home heating Oil with 41 percent favouring such a tax. Respondents were evenly split Over the question of increasing the portion of social benefits on which recipients have to pay income taxes a 45 percent willing 46 percent unwilling. In both polls jobs took precedence Over reducing the deficit with 67 percent in the times lbs poll picking jobs and 19 percent picking the deficit Ana 55 percent in the Usa today poll picking jobs and 25 percent say ing the  foresees deficit shooting past forecast Washington apr president Clinton was to declare wednesday night that absent any action the Federal deficit four years from now wiil be $41 billion worse than the gloomiest Bash administration projection a White House official said tuesday. That Means that Clinton will  to propose higher taxes and deeper spending cuts than envisioned a few weeks ago to meet his deficit cutting goal the official said Clinton is using a fiscal vs/7 budget projection of 5346 billion a compared with the 531/5 billion that the outgo re Bush admin stratum estimated in january. President George Bihy a  air Tady was greatly larger than the 51 he by Aan his adm castration projected a year earlier. Clinton has said   pro or reason he had to abandon i Campaign or Middle class tax Cut and to Stead is.  higher taxes that a Dassa it we a artict c a t re Amer. Making $30,101 or More. Clinton not  a  the budget a Tiu i a one the adm a Atra Coo figure c. S30i  for 1>v7 a also it it the . Budget of s to mate of s 31 it by Jon. To it a. Quot a a r a people Are ready to sacrifice. But the leading concern is that tha Money saved from spending cuts wont to used for new  a sen. Russell d. Ferngold a wis. A from his tour of his state concluding a a big majority is prepared to accept sacrifice if they arc really satisfied its going to deficit reduction. But they done to believe anybody a not me not the president a that it will go to deficit  the lawmakers noted that the constituents who Call them or attend their town meetings arc not necessarily representative of Public opinion. But As the deluge of Calls that buried Zoc Baird a nomination As attorney Linton a proposals general demonstrated the most highly motivated voters do make an Impact on Capitol Hill. Deconcini for example said he took an idea that had Strong support in his town meetings a setting up a National Trust for tax payments that would be earmarked for deficit reduction a to Clinton. Deconcini said Clinton did not respond to his suggestion immediately. The intensity of the reaction to Clinton a economic ians varied widely around the country. Rep. Ilonna los Echt inn r-ha., said her office was flooded on tuesday with Telephone Calls from retirees fearful that their social Security payments will he slashed or taxed More heavily. Rep. Michael n. Castle r-dcl., said that he appeared on three radio talk shows last week and that the overwhelming reaction was a scornful about the presidents reversal on the Middle income tax Cut he proposed during the Campaign. And on tuesday he said his office received 65 Calls responding to Clinton a televised address monday night with 62 expressing disagreement. Most details of the economic package president Clinton was to unveil already have surfaced. Following Are some highlights that were expected in his state of the Union address. Overall Clinton was to propose a four year $500 billion deficit reduction package roughly divided Between new taxes and spending cuts. In addition it was to include a Short term $31 billion sweetener designed to boost of creation including $16 billion in Highway and other Public work projects and $15 billion in tax Breaks for businesses to help create private sector jobs. A lower taxes a $15 billion investment tax credit part of the Short term stimulus program to help Small companies make purchases of machinery and equipment. A reduction in the capital gains tax for investments made in Small businesses and held for five years or More probably to half the current top 28 percent rate. Expansion of the earned income tax credit for the working poor. It currently applies to families making under $22,370 who have children. The White House has hinted that the credit which offsets both social Security and income taxes owed by the working poor and can actually take the form of a Grant to those with very Low incomes wiil be expanded to cover household incomes up to $30,000. Tax Breaks for companies that invest in inner cities a version of the Urban Enterprise zone proposal that had been pushed by former president George . S i an increase m the top individual tax rate from 31 percent to 36 percent. White House officials say the higher rate will apply to couples earning above $180,000 m adjusted Gross income and individuals earning More than $140,000. There will be an additional surcharge for household incomes Over s250.000, of about 3 5 percent. An increase m the top corporate tax rate from 34 percent to 36 percent. An increase in the personal alternative minimum tax. The minimum tax owed by taxpayers with big ded a tons or a Large amount of tax exempt income from the current 24 percent. Tax code changes to make it harder for companies to be executes a excessive  a Broad based Energy tax based on the heat Content of various fuels a separate Gas tax has amp Een ruled out. As has a sales tax on fuels. An increase in the percentage of social Security Pene  suced to taxation for retired couples earning More than $32,000 a year or individuals Eamma to e Man 125,000 to 65 percent instead of the Ufren 60 be cent a freeze on Cost of living  was a Ted out As a pout a one feel 0.ea ,.s�?T/at on  s say an households  not Man 130 of a year should fee some pm nor s. I Canton  sad mat 70 percent of me too Iona revenues re Sod of an me taxes in his pack age of Snow a oreo by people wan incomes Ove so of spending increases a a stimulus package of about $16 billion for spending this year mostly on Job intensive projects such As Highway and Bridge construction with some of the Money going to. Cities in the form of increased Block Grants. A a seven month Extension of additional unemployment benefits already announced by Clinton. A increased spending on immunization of children and aids research. A an increase in funds for the head Start preschool program for disadvantaged 3 and 4-year-Olds. A a Long term spending strategy Clinton Calls this kind of spending Quot investment closely tracking the expenditures on Public works High technology and other projects he outlined in his Campaign Book Quot putting people  it is Likely to Start at around $10 billion next year and grow to about $60 billion in 1997. Spending cuts a a a a a Cut in fiscal 1994 defense spending of roughly $8 billion below the Bush administration s plan with even deeper cuts in later years. A a Cut in spending for some costly projects including the superconducting super Collider a giant atom smasher in Texas and possibly space station Freedom. Some of the funds would be shifted to areas like fiber optics and other High tech communications and manufacturing projects. A a reduction in the Federal work Force of 100,000 or almost 5 percent by 1995, and cuts in the White House staff of 25 percent within a year already announced. A a reduction in administrative costs of the government totalling 14 percent Over the next four years and a restriction in the use of limousines government aircraft and other Perks by High government officials already announced. A about $55 billion in medicare cuts Over five years. Nearly one third of that amount about $17 billion will come from extending medicare reductions enacted in 1990 that Are due to expire after 1995. The rest will be new and include additional cuts in reimbursements to doctors and hospitals