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Washington loves the seven-year plan. Wednesday, President Clinton vetoed the Republican version; today, he proposed one of his own, albeit with smaller reductions to Medicare and Medicaid and fewer tax cuts. Still, Clinton's budget hits welfare, transportation and housing the hardest to save $141 billion more than his June budget proposal. While congressional Republicans complained throughout the day that the Administration was relying on overly optimistic economic forecasts, House Speaker Newt Gingrich nonetheless allowed: "It's a start." After briefing Democratic lawmakers on Capitol Hill, White House chief of staff Leon Panetta told reporters the President is considering...

Author: /time Magazine | Title: A STARTING POINT | 12/7/1995 | See Source »

After vetoing a Republican budget proposal this afternoon that contains deep cuts in Medicare and Medicaid, President Clinton said he would present his own plan to balance the budget in seven years. Clinton agreed revise his initial goal of balancing the budget in seven to 10 years to a seven-year timetable as a condition of resolving the temporary-spending deadlock that caused a partial government shutdown last month. The Clinton plan calls for smaller tax cuts than the GOP version, and will also ask for smaller spending increases on domestic programs than his previous budget includes. On Medicaid...

Author: /time Magazine | Title: CUT AND RUN? | 12/6/1995 | See Source »

...other side, of course. That's the spin that both President Clinton and Republican leaders put on the compromise that formally reopened the Federal Government after a bitter six-day budgetary impasse. Republicans gloated that the deal commits the President to a seven-year time frame for a balanced budget. The President and his aides happily pointed out that the agreement requires Congress to respect White House priorities on such matters as Medicare, education, environmental protection and taxes...

Author: /time Magazine | Title: THE WEEK: NOVEMBER 19-25 | 12/4/1995 | See Source »

...government rolled into its second day of partial paralysis, Gingrich began showing signs of strain. Pressed by reporters at a Wednesday breakfast to explain why he was so convinced that a seven-year timetable was the right one for balancing the budget, the Speaker offered a one-word response: "Intuition.'' (This was a sharp contrast to his reasoned response to the same question by Time last September, when he explained that he'd settled on that time frame after consulting with former Federal Reserve chairman Paul Volcker, banker Pete Peterson and others.) Then he devoted much of the remaining time...

Author: /time Magazine | Title: STICKS AND STONES | 11/27/1995 | See Source »

...federal shutdown energized Republicans in the House and Senate to overcome most remaining differences and hone the final version of their seven-year balanced-budget plan. The two chambers also sent a $243 billion defense-appropriations bill to the White House for yet another anticipated veto--this time for spending more than Clinton desires...

Author: /time Magazine | Title: THE WEEK: NOVEMBER 12-18 | 11/27/1995 | See Source »

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