GOP TAX CUTS ANNOUNCED

"Relief is on the way," said House Ways and Means Committee Chairman Bill Archer (R-Texas) today, as he unveiled a Republican tax-cut package that offers $189 billion in proposed savings for families and corporations over a period of five years. Democratic critics say the bill offers too much relief to wealthy families at the expense of the poor. The plan includes a $500 tax credit for children under 18 in families earning up to $200,000, as well as more generous IRAs and a capital gains cut. Republicans say the tax relief would be financed through changes in welfare, restrictions on Medicare and cuts in other programs. "How can they justify providing almost a quarter of a trillion dollars in tax benefits to the most privileged in our society by cutting the most vulnerable in our society -- kids and school lunches?" askedPresident Clinton. While the bill is expected to pass the House, it faces opposition in the Senate, in particular from Finance Committee Chairman Bob Packwood (R-Ore.) who argues that deficit reduction should come before big tax cuts.