REPUBLICAN LEADERS TRY SLIGHT OF HAND TO GET BUDGET RESOLUTION
April 8, 2003

Fair Taxes For All is bringing the following story to your attention by way of Joel Packer of NEA. Please see below:

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HOUSE GOP MAIN STREET MODERATES URGE BUDGET COMPROMISE

Working to Prevent Another Budget Stalemate, Moderates Back $350 Billion Tax Cut

Washington, D.C. - The Republican Main Street Partnership stands firmly behind an effort by 15 House GOP moderates to salvage the House-Senate Budget Resolution by proposing that both chambers include a $350 billion tax cut in the fiscal year 2004 budget blueprint.

"Failing to pass a budget resolution would wreak havoc on the upcoming appropriations process," said Main Street Executive Director Sarah Chamberlain Resnick. "It is more important to govern than to play politics. We are as anxious as GOP leaders in both chambers to pass a budget, including a tax cut, by the end of the week so that we can avoid the chaos of last year."

A group of key centrist Republican lawmakers delivered a letter to Speaker J. Dennis Hastert (R-IL) and Senate Majority Leader Bill Frist (R-TN) Tuesday evening backing a $350 billion tax cut in the conference report as well as realistic and fair levels for discretionary programs like education and mandatory programs including Medicaid.

"While some of us would support more than $350 billion in tax relief and others would prefer less, or no tax cut at all, it is clear that a budget resolution containing more than $350 billion cannot pass Congress," the letter states. A copy of the letter is below.

Main Street members of Congress have been actively working behind-the-scenes for weeks to forge a compromise based on the premise that believes a tax cut in the $350 billion range would provide enough stimulus to aid the ailing economy, leave enough room to adequately fund the war on terror and our critical domestic priorities without dramatically worsening future deficits.

The letter reads as follows:

April 8, 2003

The Honorable Dennis Hastert Speaker U.S. House of Representatives Washington, D.C. 20515

The Honorable Bill Frist Majority Leader U.S. Senate Washington, D.C. 20510

Dear Speaker Hastert and Majority Leader Frist:

It is crucial that the House and Senate pass a final concurrent budget resolution for fiscal year 2004 to enable Congress to move forward on the critical appropriations legislation to fund key programs and to pass reconciliation legislation to strengthen our economy.

We believe that a credible compromise to achieve this shared goal is for the final budget resolution to include $350 billion for tax measures to stimulate and strengthen the economy. While some of us would support more than $350 billion in tax relief and others would prefer less, or no tax cut at all, it is clear that a budget resolution containing more than $350 billion cannot pass Congress. Approving a budget resolution with $350 billion for tax cuts would allow for virtually all of the 2001 tax relief to be accelerated to benefit all Americans. It would also allow for some additional steps to help American businesses, especially small businesses. If additional tax relief is sought, it may be possible to increase the amount of immediate tax relief available by offsetting the cost by closing tax loopholes.

A budget resolution that includes $350 in tax relief; non-defense discretionary spending levels between the President's budget and the Senate resolution; and sustainable mandatory spending levels can win bipartisan support and will set the stage for smoother approval of the reconciliation and appropriations legislation necessary to enact the proposed policy in the budget resolution.

Mr. Speaker and Majority Leader Frist, recognize that many in our party prefer a larger tax cut, but $350 billion in tax relief is by any means significant. Indeed, it would represent one of the largest tax cuts in history. Yet, it is more manageable given the need to win the conflict in Iraq, continue the war on terror, fund key programs, and work to reduce the deficit. For these reasons, and in an effort to find a solution that will benefit the American people, we urge you to work to resolve the negotiations on the budget resolution within this framework.

Sincerely, Rep. Mike Castle (R-DE) Rep. Amo Houghton (R-NY) Rep. Fred Upton (R-MI) Rep. Tom Davis (R-VA) Rep. Nancy Johnson (R-CT) Rep. Rob Simmons (R-CT) Rep. Ray LaHood (R-IL) Rep. Jack Quinn (R-NY) Rep. Todd Platts (R-PA) Rep. Jim Leach (R-IA) Rep. Vern Ehlers (R-MI) Rep. Wayne Gilchrest (R-MD) Rep. Mary Bono (R-CA) Rep. Steve LaTourette (R-OH) Rep. Ed Whitfield (R-KY)

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