The Michigan Daily - Friday, September 9, 1994 - 15
.White House weighs plan for tax cuts, citing election pressures
President Clinton hopes to thwart congressional Republican plan for tax cuts, may bolster National Service program funding
The Washington Post
WASHINGTON - Under elec-
tion-year political pressure, the
Clinton administration is weighing
whether to dust off its proposal for a
middle-class tax cut - an unfulfilled
*campaign pledge that the White House
says is still on the president's list of
things to do "when the time is right."
According to congressional and
administration sources, White House
aides have begun to restudy the tax-cut
idea in the last few weeks, largely in
response to pressure from congressional
Democrats who hope to to counter a
broader Republican tax-cut proposal
;xpected to be announced Sept. 27.
! White House aides caution that
the president himself has not yet ad-
dressed the issue, and that opinion
among senior advisers is divided.
But all insist that any tax cut would
have to be offset by spending cuts or
increased taxes in other areas to en-
sure that any cut would not undercut
the deficit reduction program passed
by Congress last year.
10 "Not imminent, not likely," said
-" w -
one administration economic official
of the tax-cut idea, pointing out that the
Treasury's tax policy office has yet to
be consulted as part of the discussion.
But some political aides, antici-
pating that Democrats could lose large
numbers of seats this fall at the hands
of tax-cutting Republican opponents,
say they want to have a Democratic
counterproposal at the ready.
"This is an issue most economic
people would hope would not come
up," said one key congressional aide,
"but I don't think we have the luxury
of simply ignoring it."
On Tuesday, the White House did
nothing to silence the tax-cut chatter,
which had surfaced in several news
reports and opinion columns. White
House spokesperson Dee Dee Myers
said a middle-class tax cut has always
been something the president wanted
to do "when the time is right." Ad-
ministration aides expect that if the
president decides to go ahead with a
tax cut, it would be included as part of
the next year's budget and unveiled
only after the November congres-
"To rush in now with a last-minute
tax cut would be viewed by everyone
as nothing more than political pan-
dering," said one White House aide,
who spoke on condition that his name
not be used. "We'd get killed. It would
Republican strategist William
"If he tries to do this now, before
the election, it will be viewed as clever
for about two days," said Kristol. "It
would alienate the deficit hawks
within the party but won't do much to
win him voters."
Democratic congressional leaders
also are reluctant to get into an elec-
tion-year bidding war with Republi-
cans to see which party can offer a
bigger tax cut. The last time that sort
of competition happened, in 1982, it
marked the beginning of the rapid rise
in the federal budget deficit.
Later this month, Republican can-
didates from across the country are
expected to gather on the Capitol steps
to endorse a united platform for this
fall's campaign. It is expected to in-
clude not only a middle-class tax cut
targeted to families with children, but
also a cut in capital-gains taxes on the
profits made by investors when they
sell stocks and bonds. Some of the
cuts would be offset by unspecified
reductions in federal entitlement pro-
grams for the poor and elderly.
Although the Democrats are only
beginning to study possible tax-cut
proposals of their own, advisers say
one likely approach would involve
some form of tax credit or additional
deduction for each child in middle-
income households, worth about $300
a year per child in tax relief. That is
essentially the same proposal put for-
ward by Clinton in his 1992 cam-
paign manifesto, Putting People First.
Administration aides stress that
such a middle-class tax cut, which
could cost up to $15 billion a year.
This would be offset by closing tax
loopholes used by the wealthy or cor-
porations, or by reducing domestic
spending in other areas.
Outside economists this week said
such a proposal would have little im-
pact on the economy.
"As long as it's paid for, it's pri-
marily not an economic matter," said
Benjamin Friedman, a Harvard econo-
mist who has studied the impact of
government budget policy on the
economy. "At that point what you're
really doing is rearranging the tax
burden or readjusting budget priori-
ties, which are social and political
issues, not economic."
Senior White House aides are
clearly of two minds about the tax cut.
While the idea has unmistakeable
political appeal, a number of eco-
nomic advisers said that if there is any
money to be squeezed out of domes-
tic spending and closing tax loop-
holes, it ought to be funneled to the
agenda," which even the president
complained had gotten short shrift in
last year's budget compromise.
Among the administration's in-
vestment priorities are increased fund-
ing for school-to-work programs,
worker retraining programs and a
more rapid expansion of the commu-
nity service program to be launched
at the White House Monday.
Other aides say any available funds
should be directed to reducing the
federal deficit even further, particu-
larly in 1996 and beyond, when cur-
rent projections show that the deficit
will begin to rise again unless federal
health costs are not reigned in. The
deficit hawks are likely to find allies
on Wall Street and among economists
inside and outside the administration.
"If you have ways to raise addi-
tional resources, my priority would
be further deficit reduction rather than
throwing it away on tax cuts," said
Charles Schultze of the Brookings
Institution, a Washington-based re-
If the administration decides the
funds aren't available for a middle-
class tax cut, it could opt for less
expensive options, such as expanding
the scope of tax-free individual re-
tirement accounts for savers and in-
vestors - an idea long favored by
Treasury Secretary Lloyd Bentsen.
Classified study suggests pattern of
sexual, racial harassment within CIA
oiling Stones lead singer Mick Jagger performs during the MTV Video Music Awards at New York's Radio City Music
all last night. The band was honored with a Lifetime Achievement Award.
Jackson-Presley and Letterman-Madonna
pairs highlght MTV Video Music Awards
NEW YORK (AP)-R.E.M. won
four MTV Video Music Awards and
Werosmith took three, including video
of the year, during last night's pro-
gram that opened with Michael and
Lisa Marie Presley-Jackson making
their first live TV appearance as hus-
band and wife.
Nirvana copped the art direction
and alternative music prizes, and upon
getting the second award, Nirvana
drummer Dave Grohl referred to
*nger Kurt Cobain's suicide earlier
"It would be silly to say it doesn't
feel like something's missing. I think
about Kurt everyday."
Later in the show, bassist Krist
Novocelic introduced a special video
montage shown as apaean to Cobain's
Aerosmith also won the group as
e11 as the viewers' choice award for
ryin'," while the dance and R&B
awards went to "Whatta Man" by
Salt-N-Pepa, featuring En Vogue. And
Counting Crows were selected best
new artist for "Mr. Jones."
Tom Petty and the Heartbreakers
were voted best male video for "Mary
Jane's Last Dance" and Petty himself
took home the Michael Jackson Video
Vanguard Award for his overall ca-
As the 11th annual program went
on the air, the announcer intoned:
"Please welcome Mr. and Mrs.
Out walked the newlyweirds -
and Jackson welcomed everyone to
the show as his smiling bride looked
on. "I'm very happy to be here. And
just think, nobody thought this would
st"Jackson said, then planted a big
ss on his wife to the squealing delight
of the crowd.
They kept it in the family for
night's first award. Jackson's sister,
Janet, snagged the female video prize
for "If." She resisted any temptation
And the winners are --"
The Washington Post
WASHINGTON - A classified
1992 CIA study has found that half
the agency's white female case offic-
ers reported experiencing sexual ha-
rassment and more than half the Black
respondents reported racial harass-
ment at the agency, according to a
court filing by a case officer who is
suing the agency for discrimination.
The "Glass Ceiling" study, which
has never been publicly released,
found that women case officers toler-
ated harassment by male colleagues
"in order to be accepted," according
to excerpts included in the suit. It also
discovered "the general perception
that those who complain about such
behavior are most likely creating ca-
reer advancement problems for them-
selves," the court documents showed.
The study also found that "repris-
als (against women) seem to go un-
checked." The study was undertaken
in part by a panel of CIA female case
officers who work in the operations
directorate which is responsible for
covert activities, including espionage.
The plaintiff in the lawsuit, who uses
the pseudonym "Jane Doe Thomp-
son," was a member of the "Glass
Ceiling" panel and one of the few
case officers who by 1986 had reached
the GS-15 level.
"Thompson," who from 1989 to
1991 was chief of the CIA station in
Jamaica, used excerpts from the
"Glass Ceiling" study to bolster her
claims of discrimination against the
agency. Those began after she filed a
complaint against her male deputy in
Jamaica who had beaten his wife and
whose behavior she contended was
affecting his work performance.
The CIA has denied
"Thompson's" allegations of dis-
crimination, first in an internal Equal
Employment Office report and cur-
rently in a fight against her lawsuit in
federal court, but agency officials over
the past two years have reacted to the
Glass Ceiling Study by taking some
steps to remedy the situation it uncov-
"This (Glass Ceiling Study) has
been a major initiative," CIA public
affairs director Kent Harrington said
yesterday, "and we believe we are
turning the situation around."
He singled out "diversity on pro-
motion panels, a more rigorous and
open promotion and assignment pro-
cess, a leadership development pro-
gram and mentoring program," all of
A source familiar with
the statistics said
there was 'a significant
difference in promotion
between men and
women and the chance
it was caused by other
than gender was less
than 1 percent.'
which are geared to improve the per-
formance and promotion of women
"It's ongoing," Harrington said,
and being run and monitored by the
agency's executive committee under
CIA Director R. James Woolsey and
other top managers.
Harrington said the Glass Ceiling
Study itself remains classified because
it designates breakdowns of employee
categories, not because the informa-
tion uncovered itself is secret.
The Glass Ceiling Study found a
substantial numberof women believed
"the agency environment is not sup-
portive of them," and recommended
making "managers aware of the per-
vasive fear that employees have re-
garding filing grievances and making
complaints without reprisal."
"Thompson" tied that attitude to
her own situation claiming that disci-
plinary and administrative actions she
took against her deputy and three other
male subordinates in Jamaica led them
to make "malicious allegations against
me to the (CIA inspector general) on
the basis of my sex ... They tried to
slander me with insinuations based
on areas where women are vulnerable
to the most meager accusations: sexual
promiscuity and inebriated behavior."
CIA inspectors general who in-
vestigated "Thompson" and found
merit in the allegations against her,
said they talked to other individuals
besides the former subordinates who
made the original charges, internal
agency documents showed.
"Thompson" also used the Glass
Ceiling Study to cite discrimination
against women when it came to pro-
motions to higher grades within the
The study found women "are not
recognized by the (operations) direc-
torate at the same pace or to the same
degree as are ... men," according to
the "Thompson" complaint.
The study also said, "White males
have traditionally been given the ca-
As of 1991, the study found that
women comprised 40 percent of the
workforce at CIA but only held 9
percent of the Senior Intelligence
Service (SIS) positions. Harrington
said that number had grown to 12
percent this year.
Video of the Year:-
Tom Petty and the-
Heartbreakers, "Mary Jane
Janet Jackson, "If.."
Snoop Doggy Dogg, "Dogg
Salt-N-Pepa with En Vogue
Metal-Hard Rock Video
Soundgarden, "Black Hole
Alternative Music Video:
New Artist in a Video: -e
Counting CrowS, "Mr. Jones."
Salt-N-Pepa with En Vogue,
R.E.M., "Everybody Hurts."
Choreography In a Video:
Salt-N-Pepa with En Vogue,
y "Whatta Man."
Peter Gabriel, "Kiss That Frog."
Nirvana, "Heart-Shaped Box."
R.E.M., "Everybody Hurts,"
Lesbian Gay Bisexual Programs Office & Major Events/
Division of Student Affairs present
Video from-a Film. Cinematography:
Bruce Springsteen, "Streets of R.E.., "Everybody Hurts."
Philadelphia" from Breakthrough:
"Philadelphia." R.E.M.,,"Everybody Hurts."
The presenters of the rap prize -
which went to Snoop Doggy Dogg's
"Doggy Dogg World" - injected
some politics into the affair.
With Flavor Flav's gyrating help,
Chuck D averred that rap was no fad
- as some people suggested - and
that it offers a political forum.
Chuck D said the United States had
its own political prisoners and they
should be freed. Among those he
named: former heavyweight boxing
champion Mike Tyson, who's serv-
ing time in an Indiana prison for rape.
More boos than cheers arose from
Special UM Student Ticket Price with current
763-TKTS D at Michigan Union Ticket Office
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