
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, October 14, 1995                   TAG: 9510160041
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: LOS ANGELES TIMES
DATELINE: WASHINGTON                                 LENGTH: Medium

SENATE GOP IRONS OUT TAX CUT DETAILS

Senate Republicans reached broad agreement Friday on a sweeping, $245 billion package of tax cuts for families and businesses, increasing the likelihood that both houses of Congress will find common ground on tax relief this year.

The centerpiece of the Senate GOP package is a permanent, $500-per-child tax credit for families, which was settled on only after days of behind-the-scenes wrangling, as Republicans sought to squeeze as many tax cuts as possible into a package that also had to fit in with broader, deficit-cutting targets.

The tax credit for families with children would be phased out for couples earning more than $110,000, for example, making it somewhat more restrictive than a similar measure that passed the House earlier this year.

Clearly stung by White House charges that their proposals favor the well-to-do, Republicans on Friday took pains to emphasize that the tax plan is ``family friendly'' and its benefits were weighted toward the middle class. In addition to the tax credit for families with children, Republican leaders proposed a series of tax breaks affecting Individual Retirement Accounts, capital gains, inheritance and student loans.

``We said we were going to give tax relief to working, middle-class families, and this really does,'' said Sen. Alfonse D'Amato, R-N.Y.

The GOP deal was complicated by political rivalries and crosscurrents within the party, such as the desire to provide major tax breaks for families but also to adhere to the path to a balanced budget. As one result, final decisions on certain business tax breaks remained at issue.

The tax agreement ``keeps our word to the American people,'' said Senate Majority Leader Bob Dole, R-Kan., adding that ``I think we've done a good job.''

Dole said the Republican tax bill, which may be considered in the Finance Committee next week, will be brought to the full Senate by Oct. 24 as part of the overall budget bill, a significant piece of legislation that will embody much of the GOP push to overhaul domestic policy.

In addition to tax cuts, the bill also will encompass major reductions, new limits and other changes in spending throughout the federal budget.

Friday's Senate tax deal was the product of closed-door negotiations to which Democrats were neither invited nor informed.

``Every American should be suspicious about the tax deals Republicans are cutting behind closed doors,'' said Senate Minority Leader Tom Daschle of South Dakota, adding that ``It's more than coincidence that this deal was cut on Friday the 13th. It's voodoo economics all over again.''

by CNB