Conflict Resolved

Monday, 8/4/97 Conflict Resolved BUDGET: Democrats push to give
american families assistance in agreement

It’s a sad fact of every day life that you can’t write a check
for more money than is in your bank account. Unless of course, you
are the federal government. For twelve years, between 1980 and
1992, government expenditures, under the irresponsible leadership
of Presidents Reagan and Bush, exploded, nearly quadrupling the
national debt. This week, President Clinton’s term in office
climaxed when he agreed to sign a historic bipartisan bill which
promises to balance the national checkbook by 2002. Such a
scale-back of the federal deficit will impact all of us as college
students and young people about to enter the workforce. In many
ways, the budget agreement represents a victory of bipartisanship.
Perhaps it will succeed in alleviating some of the cynicism of an
American public which has come to expect partisan bickering rather
than reasoned compromise. At the same time, though, the bipartisan
nature of the agreement should not lead Americans to the false
conclusion that both parties stand for the same ideals, or that
similar positions were held by both sides of Congress on the key
issues. Rather, the differences in position on various budget
issues revealed once again what has been clear for over a
generation; that Democrats continue to represent the interests of
all Americans, while Republicans seek merely to protect the special
interests of society’s top echelon. The Democratic Party has long
worked to improve the lives of Americans by providing access to
such essential needs as higher education and health care. Under the
leadership of President Clinton, Democrats prioritized tax
deductions for college tuition and families with children while
expanding health care for youngsters. The college tuition tax
deduction is intended to ease the financial drain on families
paying for their children’s education. Nearly $40 billion in tax
cuts and reductions were allocated to help families meet the fiscal
demands of higher education. In order to do this, withdrawals from
Individual Retirement Accounts were deemed penalty-free when used
to pay for college education. Interest deductions for student loans
were included in the final version of the bill, along with a tax
credit of up to $1500 for the first two years of college. For the
remaining two years, a tax credit worth up to $2000 will be
granted. Thus, despite Republican reluctance, the budget signed by
President Clinton allows college students to enjoy a more
affordable education. Additionally, the budget agreement gives
families extra assistance in raising a child. This is accomplished
by the institution of a $400 tax credit per child for 1998, which
rises to $500 in 1999 for kids 16 and under. This credit applies to
families making as little as $18,000, to single parents making up
to $75,000 and to couples making $110,000. Republicans had sought a
higher threshold, but under the final agreement, those who most
need the credit will benefit from it. In order to keep those same
children healthy, health insurance programs for children will be
expanded to include an additional 10 million youths. Much of the
funds will come from an additional levy on cigarette taxes, a
further blow to an industry which profits at the expense of
millions of Americans each year and which Clinton has courageously
battled with during his presidency. This is not to say that the
budget compromise agreed upon by both sides paints an entirely rosy
picture. The economic ramifications of the plan are somewhat
ambiguous. The bill in many ways reflects short-term interests
rather than a long-term outlook, and fails to tackle some of the
serious problems of both the Medicare and Social Security programs.
Many economists argue that the extra money, received by
unanticipated tax revenues, would have benefited society more if it
had been immediately used to offset the national debt, thus
lowering interest rates. The budget agreement also does
noteffectively deal with the increasing problem of Social Security
or Medicare. While we will be paying into the Social Security
program, without a major overhaul we will get nothing out of it
when we retire. What can be said, though, is that many Americans
will feel the positive effects of a budget agreement which
addresses the needs of all citizens, rich and poor. With the
President and Congressional Democrats refusing to let the budget
agreement be merely one huge tax break for the rich, we can truly
say that the government has taken a first step towards addressing
several key issues. Let’s hope that this signals a new era of
bipartisan cooperation and a greater willingness on behalf of
Republican leadership to be responsive to the needs of all
Americans.