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American Morning

Congress to Vote on Budget, Tax Cut

Aired May 03, 2001 - 09:07   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Well, the stage is now set for the largest tax cut in a generation. Congress is prepared to vote on the budget deal reached yesterday, which includes a $1.35 trillion tax cut over 11 years.

CNN congressional correspondent Kate Snow joins us now from Capitol Hill. She's got some details to share with us this morning -- Kate.

KATE SNOW, CNN CONGRESSIONAL CORRESPONDENT: Hi. Good morning, Leon.

Well, President Bush is claiming victory over this budget deal, although it's not a complete victory. He did have to give a little. And he didn't get exactly what he wanted. That is becoming the rule here on Capitol Hill, given the new dynamic, given the fact that the Senate is split 50/50 between Democrats and Republicans. He has to work with them.

The budget deal, as you mentioned, includes a $1.35 trillion tax cut over 11 years. It also includes about 5 percent of an increase in spending for next year.

(BEGIN VIDEO CLIP)

MITCH DANIELS, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET: Five percent, especially on the $2 trillion base of the federal government, is a lot of money. We're talking about over $100 billion of additional spending. Now, the biggest winners, I think, will be the president's priorities, which are education, and national defense, medical research. But there is plenty to go around.

(END VIDEO CLIP)

SNOW: That 5 percent increase, a little bit more than what President Bush had wanted at 4 percent -- he also wanted, of course, a much bigger tax cut. Democrats say the budget that they've got now and that they'll vote on later today is an improvement.

(BEGIN VIDEO CLIP)

REP. HAROLD FORD, (D) TENNESSEE: I think some people in the House and Senate believe that this is a much better deal than the president offered us from the beginning. There are still some of us, including me, concerned a little bit about whether this will provide the discipline needed to continue to pay down the debt, provide the resources for medical research and veterans affairs, as well as education and health care and provide the big tax cut.

This is just a first step. We still have a ways to go. But it's a better start, or a better version of the bill, than the president introduced some months ago.

(END VIDEO CLIP)

SNOW: Now, this first step basically serves as an outline for Congress, as they now start appropriating money for individual programs. If history serves as any guide, that will be the tough part: trying to get the Congress to stay within the guidelines of this budget -- Leon, back to you.

HARRIS: All right, thank you much, Kate Snow on Capitol Hill this morning. We'll get back to you, maybe, next hour.

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