August 10, 1997

New Budget Bill Targets Only Special Interest Groups

The White House and Congress budgeteers labored mightily and brought forth a mouse -- albeit a fetching little thing.

President Clinton last Wednesday signed the record $1.387 trillion budget for the next fiscal year. Hopefully, this will reduce the federal budget to "just" $40 billion. While we are in a statistical mode, let us note some figures tactfully ignored by budget negotiators and ebullient media. The bill will boost the national debt to $5.6 trillion, plus another $34 billion in direct loan obligations. No matter for now. It's high-fives all around for ideological victories by Democrats and Republicans.

If all goes well with the economy, the budget will be balanced in five years. Also, there will be $94 billion in tax cuts including a $500 tax credit for families with children, a cut in the capital gains tax and a reduction in estate taxes for small businesses. House Speaker Newt Gingrich can claim successful completion of his Contract with America.

The First Couple are pleased that they finessed $60 billion in new entitlements. Children without health insurance will be covered by a 20-cent additional tax on cigarettes. Generous subsidies will benefit college students.

Also, welfare payments were reinstated for legal immigrants.

Hopefully for Clinton, these will pacify House Minority Leader Dick Gephardt and other ultra-liberals.

The new budget -- one of 14 major spending bills that must be enacted before October -- does nothing for senior citizens, couples without children, single persons, or young people without the grades or desire to attend college.

Tacked onto the measure are a score of the usual porky amendments dear to the hearts of law makers.

Both sides of the budget negotiations ducked the most pressing problem facing the nation -- the imminent bankruptcy of Medicare. In a Band-aid remedy, doctors and hospitals are to be squeezed once more, and seniors are to be nicked by a $5 co-payment for a home-care visit.

The gutless wonders of Wash D.C. offered to appoint a "non-political" commission to study Medicare and recommend changes in 1999. If you notice the deadline is after the next election, then you have a suspicious nature.

Everyone knows what has to be done, and what the commission proposals would be -- increase the full-benefit age to 67 and increase premium payments. But these will be on someone else's watch.

The so-called "baby boomers" born shortly after World War II will get something from Social Security and Medicare. They have voting clout. Odd lot out is the "X-generation" of 50 million single, working young adults in their twenties and thirties. They will pay the old-age taxes for 75 million boomers.

"There is no lonelier segment of the population in politics than the Xers," says Alexander Jutkowitz, 29, who works for Global Strategy Group which conducts market research.

Global's surveys indicate that a majority of X-ers seriously doubt that Social Security and Medicare will even exist when they reach retirement age.

This is an unfounded fear, in my opinion, simply because socialism increases inexorably. Xers will accustom themselves to a lower standard of living in exchange for security via the government.

Bill and Hillary exchanged smug smiles when Gingrich stepped in front of the TV cameras at a White House signing ceremony. He lauded "their" bipartisanship in working out the budget agreement. One is reminded of the old English joke about the king's wife who bared her neck for beheading. She saw the axe descend but felt nothing. "You have missed," said the queen. "No, madam," replied the executioner. "My blade is sharp, and my skill is great. Please nod your head."

The $24 billion "Kid Care" health insurance nailed into the new budget was lifted lock, stock and barrel from Hillary Clinton's secret, universal health-care plan of 1993.

Kent M. Brown, attorney for the Association of American Physicians and Surgeons, forced Mrs. Clinton to open the files of her health care task force. He reminds us that a "Kids First" insurance program was to be a "fall-back position" if the universal plan was not adopted.

The over-reaching proposal was squashed overwhelmingly. Only the Washington Times dug up the old files last week and interviewed Brown.

A task-force memo dated April 9, 1993, stated: "Kids First is really a precursor to the new system. Other populations will be added in the future." The only difference is that the original plan was to be paid for by employer taxes, while the benefit now law is to be financed through cigarette taxes.

Now that the hootin and hollern are over, Clinton is spending the weekend scrutinizing the budget bill he has already signed. He is identifying Republican and Democrat pork items he might veto. The president has five days to wield the axe -- according to the line-item law given him by a Republican Congress.

Nod your head, Newt.

PARTING SHOTS

• Ranger Doug says that if everyone was logical, cowboys would ride side-saddle.
  
• A private investigator -- testifying to the Senate Oversight Committee about a $70,000 donation to the Clinton defense fund by the Shing Hai spiritual sect -- said its members so revered their "master" that they drank her bath water. Perhaps the president can bottle the stuff for sale to White House visitors.

By Lindsey Williams, columnist for Sun Coast Media Group newspapers