[NPC Logo] Alice Rivlin, John Kasich

Rivlin, Kasich Battle Over Budget Issues

Many wrinkles and snags remain in the tussle over balancing the federal budget between the Democratic White House and the Republican Congress. Office of Management and Budget Director Alice Rivlin and House Budget Committee Chairman John Kasich (R-OH) corroborated that conflict in their NPC luncheon debate Oct. 19.

Rivlin contended that the Clinton Administration has made progress toward easing the federal shortfall after the nation was saddled with record deficits under the Reagan and Bush Administrations. She said Clinton's budget proposal incorporates moderate spending cuts without gutting essential programs like Medicare, Medicaid, education, student aid and the environment.

Kasich insisted that the Republican budget will work to control federal spending, strengthen defense, provide tax relief and preserve Medicare. He branded Clinton's budget proposal smoke-and-mirror gimmicks. Kasich defended the Republican plan to cut capital gains taxes as essential to the nation's economic growth.

Rivlin charged that Republicans would be funding tax cuts for the wealthy by slashing crucial entitlements for the elderly and the earned income tax credit for low-income families.

But Kasich contended that the Republicans would cut family taxes under a separate plan, although an analysis by Congress's Joint Committee on Taxation showed that those earning less than $30,000 would be hit with a tax hike instead of a cut. Referring to the GOP's plans to cut taxes by $245 billion, Kasich said: "Of course we can pay for them" by savings on foreign aid and bureaucracies.

National Press Club Record, Volume XLV, No. 39. Oct. 26, 1995.

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