Senate Republicans engage in piecemeal tax-cut strategy

By Kate Snow/CNN

July 13, 2000
Web posted at: 6:39 p.m. EDT (2239 GMT)

WASHINGTON (CNN) -- "The American people want tax relief," says Senate Majority Whip Don Nickles, R-Oklahoma, and that is at the heart of the Republican strategy on tax cuts this year.

Take a huge budget surplus and give the people what they want, popular tax cuts wrapped in small, easy-to-digest packages.

On this day, the talk is about two certainties in life: death and taxes. The Senate is debating a bill that woudl repeal the estate tax -- phasing it out by the year 2010.

"It takes death out of the equation," said Sen. John Kyl, R-Arizona. "It removes that horrible Hobson's choice that a family must make at the worst possible time."

Republicans say it would save farmers and small business owners from being double taxed after death. But in fact, only 2 percent of all estates are subject to the estate tax. And a tiny fraction of them are family-owned farms.

"It's very clear what the priorities are," said Sen. Edward Kennedy, D-Massachusetts." The Republicans are looking after the financial interests of the wealthiest individuals in this country."

Democrats offered their own estate tax cut for family-owned businesses. But it was killed along party lines. Republicans plowed ahead with more tax relief. One addition sure to please summer travelers is a temporary repeal of the 18-cent federal gas tax, offered by a Republican facing a tough re-election contest in Michigan.

Married couples are next on the agenda before the summer recess at the end of July. A Republican plan would eliminate the so-called marriage penalty and provide a tax break to all married couples.

"Give me a tax cut that isn't popular," said Senate Minority Leader Tom Daschle, D-South Dakota. "I mean, the Republicans have built their whole reason for being around this notion that somehow no one should have to pay any taxes."

Last summer, Congress tried to push through a huge package of nearly $800 billion in tax relief. The president refused to sign it. And Republican leaders learned from that mistake.

"They took a page out of President Clinton's strategy -- legislative strategy -- which is to break things up into bite-size morsels -- that the public readily supports and understands, and get votes on it," said Glen Bolger of Public Opinion Strategies. "And when its a 70 percent supported issue its hard for the Democrats to oppose it."

President Clinton has already said he'll veto both the estate tax repeal and the marriage tax reduction, saying the surplus should be used for other priorities.

But analysts say that is part of the Republican strategy, forcing the president to veto tax cuts would give them fresh material, a way to criticize the White House at the Republican convention later this month.