Washington loves the seven-year plan. Wednesday, President Clinton vetoed the Republican version; today, he proposed one of his own, albeit with smaller reductions to Medicare and Medicaid and fewer tax cuts. Still, Clinton's budget hits welfare, transportation and housing the hardest to save $141 billion more than his June budget proposal. While congressional Republicans complained throughout the day that the Administration was relying on overly optimistic economic forecasts, House Speaker Newt Gingrich nonetheless allowed: "It's a start." After briefing Democratic lawmakers on Capitol Hill, White House chief of staff Leon Panetta told reporters the President is considering mechanisms to rescind tax breaks and to impose automatic spending cuts if deficit reduction targets are not met.