Masonry Magazine April 1989 Page. 30

Masonry Magazine April 1989 Page. 30

Masonry Magazine April 1989 Page. 30
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WASHINGTON WIRE
continued from page 29

IT'S TOO EARLY TO ASSESS THE RELATIONSHIP between Bush and Congress. The talk of cooperation, conciliation and compromise hasn't yet had a test. But the President's "honeymoon" with Congress has probably come to its end. Comfortable generalizations are ending. Now the specifics will take over. Bush clearly begins the game on the offensive and with the big advantage. First, he is President, the man the whole country looks to for leadership. Second, he has skillfully grabbed the high ground for himself and the GOP.

What's more, Democrats concede that the party doesn't have an agenda. It is difficult for Democrats to make promises without money to back them. But this does not mean that the President will have it easy. The problems remain large.

THE PLAN FOR BAILING OUT THE SAVINGS AND LOAN INDUSTRY is under fire after drawing an almost euphoric reception in Congress when first laid out. Lawmakers complain that the proposal is short on money and weak on detail. There is concern that the plan will become a budgetary nightmare later on. The key issue is whether the plan has enough money to shut insolvent S&Ls, pay off $40 billion in obligations and add new funds for deposit insurance.

Bush and Congress will reach a compromise on the measure. The problems must be resolved to avoid a financial crisis.

BUSH'S PROPOSAL TO REDUCE THE CAPITAL-GAINS TAX won't pass Congress. The plan has generated a storm of criticism from Democrats on Capitol Hill, who contend that the cut would provide a bonanza for many wealthy taxpayers. The President is seeking to cut the top capital-gains rate to 15% from 33%. He claims a reduction would create new jobs, thus adding to taxable income. His estimates say the cut would yield an extra $16 billion over five years. Almost $5 billion of this total would be added to revenues in fiscal 1990-as the lowering of the capital-gains tax encourages people to sell assets.

The added revenue from capital-gains would finance other tax plans-breaks for oil drilling, child care, enterprise zones.

THERE ARE DIFFERENCES IN APPROACH IN WASHINGTON to child care help. Bush calls for a tax credit for low and moderate-income families for care; the credit would be as much as $1,000 for each child under the age of four, even in families where the mother does not hold a job outside the home. The credit would be in cash to poor families that don't pay income tax now. The Democrat-backed bill contemplates a budget outlay of some $2% billion, to create and support child-care programs for low and modest-income people and to establish health and safety standards for all child-care facilities.

What may emerge is a compromise blending the approaches of both ideas. It would pair a subsidy and standards with a tax credit. It will not be a take-it-or-leave-it approach.

AN INCREASE IN THE MINIMUM WAGE IS NOW ON THE FAST TRACK for passage. Congressional Democrats have made an increase in the floor a priority issue. And President Bush essentially embraced the need for a hike in the campaign. But there are some major differences between the White House and Congress. Debate centers on how much the minimum will be raised over what time
30 MASONRY-MARCH/APRIL, 1989


Masonry Magazine December 2012 Page. 45
December 2012

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Masonry Magazine December 2012 Page. 46
December 2012

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Masonry Magazine December 2012 Page. 47
December 2012

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Masonry Magazine December 2012 Page. 48
December 2012

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