Omnibus Tax/Budget Bill

THE DAILY FED

Omnibus Tax/Budget Bill

Assuming Republicans still control the House and Senate next year, Congress will take up legislation combining Bob Dole's tax cut plan and a balanced budget in the summer, House Speaker Newt Gingrich, R-Ga., said today. "As speaker of the House, I've already talked with Bob Dole about the fact we would pass the tax package in one bill with a balanced budget exactly as we did in 1995," Gingrich told a news conference. Responding to criticism that the large tax cut would balloon the deficit, Gingrich said in addition to the entitlement reforms in last year's budget, defense programs could be reduced. "I believe that some legitimate reform of the Pentagon is in fact desirable," he said. Gingrich also noted Dole could be the first president with a line-item veto.

In a related development, Gingrich recently told a House GOP leadership meeting that National Republican Congressional Committee Chairman Bill Paxon of New York next year will take over party leadership responsibilities now held by Science Chairman Robert Walker of Pennsylvania, according to Paxon. Walker is retiring from Congress at the end of this year. Paxon, who earlier announced he will not seek another term as NRCC chairman, would become chairman of Gingrich's high-powered Speaker's Advisory Group, where Paxon had focused on political strategy. Although recently overshadowed by the activities of his wife -- Rep. Susan Molinari of New York, the keynote speaker at this week's GOP convention -- Paxon is scheduled to speak to the convention later today about GOP prospects for retaining control of the House in November.