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American Morning

Bush Wants House to Go Along With a $10 Billion Child Tax Credit

Aired June 11, 2003 - 08:07   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.


DARYN KAGAN, CNN ANCHOR: President Bush wants the House to go along with a $10 billion child tax credit that was passed by the Senate. But House Majority Leader Tom DeLay says, "It ain't gonna happen." DeLay plans to bring an expanded $82 billion plan to the floor tomorrow, and that gives the president just one day to get his party in line.
John King is at the White House this morning to tell us more about the plan and the politics -- John, good morning.

JOHN KING, CNN CORRESPONDENT: Good morning to you, Daryn.

This dispute between the Republican president and the Republican leader of the House of Representatives, the majority leader of the House of Representatives, another reminder that the president is having a much tougher time this year getting his way with Congress. Remember, in the initial round of tax cuts, the president wanted more than $700 billion this year. He had to settle for less than half that. And this story now, this dispute over a child tax credit is a follow-up to that debate.

The Democrats in the Senate realize that lower income Americans were punished, if you will, in the final compromise, that they did not get the full benefits of a child tax credit extension. So they pushed through this new $10 billion package to give low income Americans a better bite of the apple when it comes to the child tax credit.

House Republicans said sure, they would match the Senate bill, but they say it should be part of another big $80 billion tax cut. The president wants this debate over. He would like a compromise on the $10 billion plan. But as you noted, House Republican leader Tom DeLay right now saying that ain't gonna happen. The issue will be what happens down the road. The White House says once the House passes its bill, it will have to reconcile it with the Senate. It is confident in the end another compromise will be reached, but, again, an example that the president is having a much tougher time this year getting his way in Congress. Even the Republican leader is not necessarily following the blueprint laid out by the Bush White House -- Daryn.

KAGAN: Well, and, John, grammar aside for a moment in terms of "ain't gonna happen," aren't conservatives like DeLay making the argument that these are people who never paid into the system in the first place since they don't pay the federal tax, and so that's why they really shouldn't get anything back? KING: Well, one of the arguments they make is that, yes, if you don't pay taxes, why should you be included in every tax cut? But this is also the first example of the Democrats this year finding an opening, forcing, in the Senate this time, forcing a reconsideration of the tax cut debate. So the Democrats have a little momentum here. They're energized by the fact that they were able to reverse course and score some political points.

That's one of the reasons the president wants this debate to go away. Another reminder of this dynamic later today, Daryn. The president will be in Chicago promoting his views on Medicare. That is another issue in which key members of Congress, including Republicans, have said thanks, but you're not going to get everything you want.

KAGAN: All right, John King, thanks to you at the White House.

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Aired June 11, 2003 - 08:07   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: President Bush wants the House to go along with a $10 billion child tax credit that was passed by the Senate. But House Majority Leader Tom DeLay says, "It ain't gonna happen." DeLay plans to bring an expanded $82 billion plan to the floor tomorrow, and that gives the president just one day to get his party in line.
John King is at the White House this morning to tell us more about the plan and the politics -- John, good morning.

JOHN KING, CNN CORRESPONDENT: Good morning to you, Daryn.

This dispute between the Republican president and the Republican leader of the House of Representatives, the majority leader of the House of Representatives, another reminder that the president is having a much tougher time this year getting his way with Congress. Remember, in the initial round of tax cuts, the president wanted more than $700 billion this year. He had to settle for less than half that. And this story now, this dispute over a child tax credit is a follow-up to that debate.

The Democrats in the Senate realize that lower income Americans were punished, if you will, in the final compromise, that they did not get the full benefits of a child tax credit extension. So they pushed through this new $10 billion package to give low income Americans a better bite of the apple when it comes to the child tax credit.

House Republicans said sure, they would match the Senate bill, but they say it should be part of another big $80 billion tax cut. The president wants this debate over. He would like a compromise on the $10 billion plan. But as you noted, House Republican leader Tom DeLay right now saying that ain't gonna happen. The issue will be what happens down the road. The White House says once the House passes its bill, it will have to reconcile it with the Senate. It is confident in the end another compromise will be reached, but, again, an example that the president is having a much tougher time this year getting his way in Congress. Even the Republican leader is not necessarily following the blueprint laid out by the Bush White House -- Daryn.

KAGAN: Well, and, John, grammar aside for a moment in terms of "ain't gonna happen," aren't conservatives like DeLay making the argument that these are people who never paid into the system in the first place since they don't pay the federal tax, and so that's why they really shouldn't get anything back? KING: Well, one of the arguments they make is that, yes, if you don't pay taxes, why should you be included in every tax cut? But this is also the first example of the Democrats this year finding an opening, forcing, in the Senate this time, forcing a reconsideration of the tax cut debate. So the Democrats have a little momentum here. They're energized by the fact that they were able to reverse course and score some political points.

That's one of the reasons the president wants this debate to go away. Another reminder of this dynamic later today, Daryn. The president will be in Chicago promoting his views on Medicare. That is another issue in which key members of Congress, including Republicans, have said thanks, but you're not going to get everything you want.

KAGAN: All right, John King, thanks to you at the White House.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




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