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Show at The Salt Lake Tribune OPINION Thursday January 5. 1995 Clinton Must Walk a Tightrope in ’95 We INGTON — The new Congressbegins work this week in a political world radically trans- formedby the 1994 elections. The most obvious changeis the Republican control of both the nate and House of Representa for the first time in 40 years 3ut the change in President Clinton’s position is equally signifi- cant Clinton was viewed before Noy 8 as a president with serious polit- challenge him for the nomination in 1996. In spite of his recent toes from being overridden But the Republicans, whoalso statement that he will seek reelection. if his fortunes sink further it’s not inconceivable he recognize that the 1996 presidential campaign is already under might yet be willing to step aside for Vice President Al Gore. Gore is the one major figure in the administration who has managed to skate through the first two years despite all their post-election posturing about howthey are willing With his reputation intact and per haps even enhanced. Since the election Clinton has way, won't makeit easy for him to cooperate. Twoissueswill pre- sent direct tests for both the Republicans and Clinton The first is the middle- cl: s tax Republicans will pass a fe bill been bombarded with advice on thatwill be directedat the middle class but alsotilted towardtheaf- the Democratic Leadership Coun ceil, the group of cen ist-to-con. servative Democrats Clinton once fluent. The question wil! be whether Clinton will swallow it and, if he does. whether he can persuade liberals it is acceptable. The second issue is welfare re form in, the Republicanproposals seem far more harsh than the liberal Democrats — and the how to right himself. Leaders of headed, have been blunt in criti cizing himfor failing to appeal to their view of the center of the po- litical spectrum. Meanwhile. the liberals have been conspicuously quiet in offering any defense of the president Clinton himself has seemed ical weaknesses to overcome. But anxious to please the new angry that judgment was based almost entirely on the results of public majority that prevailed Nov. 8 Only days after the election he suggested he might be willing to go along with conservatives with opinion polls. Now there is the ate Democratic minorities. He will need them to prevent any ve- Congressional Black cus in particular — are likely palatable to find The Republicans have some problemsof their own. Speakerof the House Newt Gingrich is not universally admired even within some form of a school prayer his own party and must demonstrate an ability to get along not of Clinton’s performance in his amendment, a notion that outraged liberals and from which just with his colleagues in the first two vearsin office. And, although politicians may beimpressed by poll figures, they Clinton quickly retreated. Then House but with the Republican old bulls of the Senate who may ding war with the Republicans late last month. hejoined the bid- be less entranced by his aggressivestyle. By any measure, though, the president's situation is far more difficult. He was elected in 1992 hard reality of election returns that have been almost universally interpreted as a blunt repudiation are much more impressed bythe actual verdict of their constituents, particularly whenit is so one-sided. Clinton is seen today as not just a president with a politi- cal problembut as one whosefu ture is hanging in the balance Indeed, the president's position is so precarious that the Demo- over tax cut for the middleclass. It is already clear, however. that it won't be that simple. The president may feel compelledto by holding the DemocraticParty's reach that swing constituency in traditional constituencies while the middle but he must recognize that he cannotafford to alienate the liberals who are dominant blocs in both the House and Sen- bringing back the so-called Reagan Democrats — the samevoters whodeserted him Novy. 8. It won't beeasy to pull that off again Campaign Finance Reform? Not Now “IS THIS A GREAT COUNTRY, OR WHAT?’ Nothing Wrong With Newt’s Book Deal $4 million is a lot of money — and THOMAS SOWELL Robert Livingston, new ations Committee, owes his reelection primarily to defense industries ($89,500) and energy and natural resources interests ($50,250), virtually all from AUSTIN — HappyNew Year! And nowit’s time to take down the Christmas tree. throwout the fruiteake, add up the bills and step on the scale. Here come January, February, Ry Krisp andcottage cheese. Tis the season to get real, so let's go back to political basics. The first law of politics is: You Got to Dance With Them What Brung You. Solet’s take a look at whobrung our newleaders. Sen. BobDole’s largest contrib- utor clump is in finance, insur- anceandreal estate. for a total of $537,356, about 60 percent from political action committees and the rest from individuals. His second-biggest interest group is agriculture — perfectly understand- able in a farm-state senator — for $320,731, almost all of it from po- litical action committees. Rep. Newt Gingrich also owes most to finance, insurance and real estate, a total of $360,208, with miscellaneous business a close second, $318,584, again with PACs predominating easily Sen. Alfonse D’Amato of New York, newchairmanof the Senate Banking Committee. got a whopping $1,331,695 from finance, in- surance and real estate, with miscellaneous business a poor second at $456,775. On the other hand they represent. Which goes to show that you can’t fool 78 percent of the American people. But that’s no groundswell As welisten to the Republican: PACs. talk about “reforming Congre: man of House Agriculture, unsurprisingly had agriculture as far and away hisbiggest contributor evi erything else is minuscule. But Rep. Thomas Bliley Jr., new and “reforming government’ and ‘reforming welfare,’ just remember: The Congress that is on the teat of corporate donations is the same Congress that hands out corporate welfare. The total costs of this election Rep. Pat Roberts, new chair- itn CREATORS SYNDICATE ested in serving special-interest groups than in serving the people chairmanof the House Commerce Committee, has a far more nicely balanced spread. Finance, insurance and real estate lead again with $170,222, closely followed by health interests with $161,638. Also right up there is agriculture with $151,226, which is only unusual if you don't know that the last Commerce chairman, Henry Waxman, led the crusade against tobaccointerests. My thanks to the newsletter Capital Eye, A Close-Up Look at Moneyin Politics, for the numbers. Nowwhat do our newleaders think about campaign-financere- form,theroot of therot, the sys- tem of legalized bribery with which they buyoffice? Why, those li'l ol’ reformers, just listen: Sen Phil Grammsaid, “I am eager to reform our campaign process, just as the Democrats were when they were in the majority.” Ho, ho, ho: hee, hee, hee; that Phil Gramm — whata card Sen. Mitch McConnell, R-Ky., was up-front: “Campaign finance reform will not be on the agenda There's no groundswell for it. We won't waste anytimeon it Thanks, Mitch. According to national polls, 78 percent of Americans think that most members of Congress are moreinter- cycle are expected to go over $1 billion. There are no congression- al or electoral reforms — not FOR THE WASHINGTON POST can pay it if they must. Tom comes from more meager means. President Clinton's proposal to makecollege tuition tax deductible is a cruel hoax. Contrary to its gun to their heads. Tom will bor- pe ip promise, if enacted by Congress the president's plan will provide little benefit to the struggling middle class. Instead, it will primarilybenefit the relatively well- to-do. The less fortunatewill simply have one more reason to believe that Washington either does not understand their problemsor does not care about them The president proposed that collegetuition be tax deductible for families earning up to Tom's family couldn't paythe tuition at Yale even if you held a row somewhere in the neighborhood of $50,000 before he completes his degree at Yale depending on how much he can make working part time or during the summers It is practically inconceivable that either Carol or Tom will earn enough money during their study at Yale to incur anyserious tax liability. In all likelihood, both Carol and Tomwill spend more on books for their first year than Gingrich to give up the money There should be no mystery as CREATORS SYNDICATE to why a multimillion-dollar book contract was offered to Newt STANFORD, Calif. — In fore Gingrich. ing now House Speaker Newt Gingrichto give up the $4 million advance he was to receive for writing a book, the dog-in-the manger liberals have now won their first political victory since their disastrous losses in last No vember’s elections. Moreover they did it with help from some Republicans, who urgedGingrich change the way campaigns are fi- nanced. Our pols will continue to dance with them what brung ‘em. We will continueto get government of corporate special interes’ by corporate special interests and for corporate special interests. Watch the “reform” Republicans legislate amazing newtele- communications law. Watch General Electric lobbyists again draft corporate tax law that reduces the company’s tax to below zero. Watch “reform” Republicans decide that regulating derivatives would violate sacred free-market standards. Watch Archer-Daniels-Midland keep that ethanol subsidy. We'll be hearing about “reform’ until it comes out of our ears. Beloveds,until they reform the way campaignsarefinanced, ‘reform’ is a tale told byanidiot, full of sound and fury, signifying nothing. family is still free to pay her tuition, and thus presumably they wouldstill qualify for President Clinton’s tax break Tom'sis a much different situation. If Tom wants to attend the Yale LawSchool, he has to borrowthe money. Hewill be paying for his education every month for 10 years after graduation. Neither Tom nor his parents will ever be able to deduct any but a trivial portion of this cost So howdo youlevelthe playing field for Tom and Carol? Simple instead of making tuition tax deductible, make the principal, in- terest or both paid back on stu- dent loans tax deductible. If the goal is to manipulate the tax code to provide incentives for educa- school careers combined dent, in which case Carolwill like- tion, then provide relief when it is meaningful, after graduation. It is the period right after graduation beneficiaries of the president's loans, and thus Carol's family will as a percentage of income and proposal? Those Americans who are wealthy enough to pay for have to pay hertuition. Even after their children to attend college. Whowould benefit theleast from the president's proposal? Those Americans who either pay their owntuition or borrowthe money Imagine two students entering President and Mrs. Clinton’s alma mater, the Yale LawSchool. Carol's family earns $90,000. Tuition at Yale is not exactly spare changeto Carol’s family, but they \ b lybe unableto qualifyfor student President Clinton’s tax break, Carol's family will have tens of thousands of dollars invested in their daughter's education. Still, it is better than giving it to the federal government. If they don't claim Carol as a dependent, Carol can qualify for Noone has yet said just what specifically was supposedtobele gally or morally wrong about the advance. Other members of Con gress write books, andall sorts of other writers get advancesall the time, both in smaller amounts than Gingrich’s and in larger amounts. Purple prose, vague innuendoes and pompoustalk about “the appearanceof impropriety” were enough to makeGingrich decide The better known the writer, thebi t sales and therefore kely book the higher the publishers’ bids for the book With Gingrich about to become far better known thanever. pub: ishers saw an opportunity to sell books, which is what they are in business to do. Whatit all boils downtois that Among people who work full-time and year-around, only 3 percent fall into the eate v of “poor”? — and not necessarily permanently at that A recent study of top-income corporate executives revealed that most had begun working to earn money by age 10. That doesn't sound much like “the rich.” Ross Perot was delivering papersat 4 o'clock in the morning preferred that young Perot get government subsidies that would ket should make lot of noise about someone making a lot of have allowed him to be idle. The money What is a bad omen is that devil has found lots of work for Republicans have cavedin to that mindset, which is the mindset the voters repudiatedat thepolls last November What adds irony to the political the millions ofidle hands created by the liberal welfare state. Our unsafe streets, crowded prisons. and armies of drug addicts are proof of that old ade 1e. hypocrisy is that such resentment When people with the liberal is directed toward those who are mindset makeloud noises against those without inherited wealth earning someoftheir own, that is earning money, not those who in herited far more money, like Ted Kennedy, Jay Rockefeller and els arelikewise directed primari dress in the new Congress. tween individuals whose working careers have just begun and those who have reached their peaks. It is also a diffe weenthose who work and who do not when he was a kid Liberals would no doubt have wereseriousnational issues to ad- ction when there gentsia are not differences between hereditary classes but be acceptedthelogic of a free mar- other politic Many of the income differences so loudly deplored by the intelli- It is hardly surprising that liberal Democrats who have never that it wasn't worth it to have this multimillionaires in the Senate. Our confiscatory tax lev ly against those who are earning money, not those who already at least consistent. But when those who supposedly believeina free-market economyandsociety succumbto the clamor, thatis not a good sign for their attempts to turn this country around Polo/Ralph Lauren @ Barry Bricken @ Joseph Abboud @ Burberry’s @ Sero @ ethics reforms, not lobbydisclo- sure — that will makeoneiota of difference unless and until we a tax break for anyreason is essentially meaningless. So who would be the primary So Carol's family has a choice. They can claim Carol as a depen- David hopeful Jack Kemp in pressing sional committees andstaff, not $100,000. Unfortunately, most college students do not earn anywherenear $100,000. In fact. they have solittle taxable income that they will pay in federal income tax during their college and law Congressman have it term limits, not cutting congres- College Deduction Should Cover Loans ByDouglas McKinleyJr. like Bonior were joined by nervous Republicans like Senator Bob Dole and perennial presidential when loan payments are highest when tax relief is most welcome. Since student loans are already means-tested, this approach will automatically benefit those who needtherelief the most: the underprivileged who made the investment in themselves and borrowed their way through school. It may even decrease the default student loans and borrowfor her own education. But even if Carol rate on theloans. is not a dependent andtakes advantage of student loans, Carol's Dougias McKinleyis an attorney in Kennewick, Wash. uamey ydey/ojog @ UONDaTIOD ‘pr] OSeITIA e@ jeeydey Is 10OUL e@ s,Aueqing @ pnoqqy ydasor @ uaxDUg Aueg @ useiney ydjey/ojog Rep. chairman of the House Appropri- those seeking to exploit envy and resentment. 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