Senate begins debate on deficit-reduction plans
WASHINGTON (AP) — The Senate plunged tnlo
debate Wednesday over a Democratic package of tax
increases and spending cuts designed to reduce the fed
eral deficit by $51fl billion Republicans offered a no
new-taxes alternative
' This is the largest deficit-reduction plan ever pro
posed by any president of the United States." said Sen
James Sasser. D-Tenn.. manager of the Democratic bill
He ailed it a turning point for the nation — a plan that,
if followed by overhaul of the medical care system,
would bring "a federol government that is fiscally
responsible and fist ally solid" by the end of the decade.
But Sen Pete Domenici. R-N M.. accused Democrats of
producing an "Alice in Wonderland" plan that would
drain the economy of money needed for job creation
without controlling mandatory spending programs that
threaten to bankrupt the country.
The American people want (spending) cuts first and
taxes next," Domenici said. "This one is the reverse.
The substitute that he offered with Minority Leader Bob
Dole, R-Kan . and Sen Bob Packwood. ROre., would cut
the deficit by $367 billion — about $20 billion more than
Republicans give Democrats credit for proposing
The GOP plan includes:
• Limiting spending for Medicare, pensions ami sim
ilar mandatory spending to a level about $58 billion
below the Democratic version, starting in 1096. Social
Security would be exempt.
• Holding discretionary non-military spending, which
includes programs from education to highways, to cur
rent levels for five years, saving $85 billion
• Defense spending at levels Clinton requested
• Freezing spending for foreign aid. saving $7 billion
At the White Home. President Clinton predicted the
Republican plan would sene only "to protect the privi
leged and punish the noddle class and the most vulner
able."
The Democratic bill, which follows Clinton s princi
ples but vanes in some details, would raise taxes bv SJ-t't
billion over the next five years with H? percent of the
increase falling on those earning more than $100,000
The only impact on most middle- and low-ini nine fam
ilies would come from a -4 1-cents-ngnllon increase in
the tax on motor fuels, although some retirees would pay
more tax on their Social Security benefits.
The first vote on the bill rejected. 54-44. an effort by
Majority Loader George Mitchell. D-Maine. to restore a
v ersion of Clinton's targeted capital-gains tax cut for
small business The amendment, which fell six votes
short of the fit) needed to overcome n technical barrier,
also would have incroused to StH.500 the amount of
machinery a small business could write off in the year of
purchase
The bill would restrain the growth of mandatory
spending programs, including Medicare ami Medicaid,
by St07 billion It anticipates — but does not ensure —
that Congress and the president will agree later on
spending cuts, fees and other changes totaling St 10 bil
lion. Expected savings on interest costs would bring the
total deficit c ut to $51fi billion
Thus, over the next five years. Democrats said, there
would Ihi about St of spending tuts for oath St of now
tax Kepublii ans preferred to emphasize that in I'l'H
there would Imi only about SH billion of spending < uts
but $:t7 billion of new taxes
Whatever the Democrats' intentions, insisted Sen Hob
Pack wood, K <>re (n\ increases inevitably would lead to
nion> sfianding. not deficit reduction. I II liet vou a dime
to a dollar that* exactly what this Congress will do and
the president will agree." ho said
Without any deficit-reduction plan, the government's
red ink. is estimated to rise to $2'Ki billion in 1904 and to
$361 billion in 1'i‘lH Democrats say the Senate bill
would cut those figures to $24(1 billion and $204 billion,
respectively
Despite differences over which energy taxes to
increase and how deeply to cut Medicare. Clinton and
Demot rats in the Senate and House agreed on one major
point The deficit-cutting plan should reverse tax poli
cies of the Keagnn-Hush years, which they view as too
generous to the rich
"hot's j4*>t over tins argument that during the Reagan
Hush years somehow the ru h e-a aped and the |MK>r went
raped." Hai kwood responded That is simply not true ."
The Republican strategy for attacking the bill was
clear. Sasser said "To prole* t the wealthy they ve got
to persuade the other 0-t pen ent of the people that they
am threatened by this bill try to get them outraged so
they can protect the t*> pert ent. the wealthiest who do
have to pay increased taxes
Sen Robert Kerrey. I) Neb , who has problems of his
own with his party's hill, accused Kepuhlit ans of spend
tug too much time recalling Clinton's abandoned cam
paign promises He said the debate was haunter!
unfairly by a ghost from loot), when President Hush
broke his own campaign pledge not to raise taxes
"The central question," Kerrwv said. "is. Is the defii it
a problem and are we prepared to do something about
iff"
Drug-case witness killed at home
MIAMI (AP) — A key witness in one of the
nation's biggest drug cases was gunned down
behind a barbed wire fence that surrounded his
home, the fifth shooting victim connected to an
upcoming trial.
At the center of the case art; Augusto Guillermo
"Willie" Falcon and Salvador Magluta, accused
drug smugglers with connections to Panama's cur
rant president.
"Federal prosecutors have said previously that.
in their heydey, Augusto Falcon and Salvador
Magluta controlled the largest drug ring on the Fast
Coast, and one of the five biggest in the world. Inn
Sherid, a spokesman in Miami for the Drug Fnforce
inent Administration, said Wednesday
Falcon and Magluta. both of Miami, allegedly
smuggled 75 tons of cor a me into the t Inited States
in the lOHOs At the time of their October 1991
arrests, federal authorities identified $Z 1 billion in
assets the men controlled in two Florida counties.
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Colombian
stowaway
going home
MIAMI (AP) — A Colombian
teen-ager who says he slowud
away to Miami in the wheel
well of a cargo jet will be sent
back to lus homeland, U S
immigration officials said.
Juan Carlos Guzman. lt>, bed
about his identity, claiming to
lie 13-year-old orphan "Guiller
mo Rosales," said Walter (.ad
man, local director of the Immi
gration and Naturalization
Service,
Thu boy arrived June 4 aboard
un Area Airlines 1X,'-H jel. Guz
man said he took (lie three-hour
trip from Cali tucked inside the
plane's landing-gearwheel well.
Some authorities doubt that
part of his story, but ( adman
said Tuesday there is no longer
any question he lied about being
an orphan.
“The boy is not who he pur
ports to lie." he said “ I he stuff
lie said about his family, his
name and his age. none of that
is accurate. Givon the fai t that
other things haven't punned out.
we don’t know how he really
got here.”
INS officials asked Guzman to
leave the United States by July
14. when his current immigra
tion parole expires.
His lawyer. David Iverson,
said the boy is depressed
"because ho has to go back to
the terrible life he had in
Colombia.”
Iverson said he would make
a final attempt to keep the boy
in the United States Guzman
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