GOP senators push for quick tax relief with surplus

Dana Bash
CNN Capitol Hill Producer

WASHINGTON (CNN) -- Citing the need for a quick fix for the slumping American economy, Senate Republicans will push for using this year's surplus dollars for a $60 billion rebate or immediate tax cut.

Senate Budget Committee Chairman Pete Domenici, R-New Mexico, recommended the idea in a meeting of Senate Republicans and White House budget officials Thursday afternoon.

"The economy needs to see a positive sign that we are concerned about the economy," Domenici said. "Because of the economy and concerns that are growing, we're going to first try to do this as fast as possible. So the word is quick, or quickly, we're going to get this done."

Domenici and other Republican senators said they want the $60 billion cut from the 2001 surplus to be over and above President George W. Bush's 10-year $1.6 trillion proposal. White House officials said although they support the idea of an instant cut, they hope the Senate would not add to their overall tax proposal.

GOP senators emerging from the meeting said there was a concensus for supporting the idea among their caucus.

Details on how the tax giveback would be distributed remains to be determined by the Senate Finance Committee.

"We have a substantial surplus this year, and I believe we can go well above that and find a way to make it available for taxpayers across-the-board this year," said Senate Majority Leader Trent Lott, R-Mississippi.

GOP senators said they expect this year's budget surpluses to be roughly $1.25 billion and using $60 billion of that for a tax cut still leaves money for spending and debt reduction.

Domenici said he hopes there will now be two large tax bills moved through the Senate. The first will include the $60 billion rebate, plus the president's across-the-board marginal rate tax cut, some $983 billion.

The second tax bill will include other tax cuts such as marriage penalty reduction, estate tax cuts and the child tax credit.

Senate Minority Leader Tom Daschle, D-South Dakota, has offered his own plan for an instant tax cut, reducing the bottom 15 percent tax bracket to 10 percent.

A Daschle spokeswoman expressed disappointment that the White House has not responded to senator's proposal and is reserving judgment on the GOP tax rebate plan.

"We have concerns about adding to the Bush plan. They need to come talk to us. We favor getting out money immediately, but we need to see the details," the Daschle spokeswoman said.

Lott said he intends to ask the Finance Committee to expedite its work in writing the tax bill so that it gets to the president's desk by Memorial Day.

"I've asked that we take a look at it and see if we can expedite the schedule. I had been thinking we probably couldn't get something to the president before the Fourth of July recess period, but we now are looking to see if maybe it can be done before Memorial Day," Lott said.

The Senate will take up the budget resolution framework that includes an overall tax cut figure the first week in April.

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