Senate Majority Leader Bob Dole is reaffirming $245 billion over seven years as his goal for a tax reduction while studying a plan from conservative senators to end the cut after four years.
"We still have the goal of $245 billion," Dole, R-Kan., said Monday. "As far as I'm concerned, $245 billion is the figure."But the option of a four-year cut would allow Congress to enact a bigger tax cut during the first four years because, officially, taxes would go back up during the final three years of a seven-year budget window.
However, as a Senate Steering Committee staff memo outlining the option pointed out, "The provisions would expire in 1998, and it would be highly unlikely that Congress would vote to take them away in an election year."
The plan was forwarded to Dole by Sen. Larry Craig, R-Idaho, chairman of the 35-member steering committee, a discussion group of GOP conservatives.
Dole was following up remarks Sunday, when he told CBS television, "I'm not certain at this point" whether the Senate can produce a $245 billion tax cut.
The comment was sharply criticized by two GOP presidential rivals - Sen. Phil Gramm of Texas and television commentator Pat Buchanan.
Gramm on Monday sent a letter of support to House Speaker Newt Gingrich, R-Ga., who told ABC television on Sunday that the Senate was "honor-bound" to provide $245 billion in tax cuts.