Dole to Bush: back off on capital gains

September 21, 1990|By Knight--Ridder

WASHINGTON -- Trying to get stalled budget negotiations moving, Senate Republican Leader Robert Dole is urging President Bush to take a new approach on his cherished capital gains tax cut plan.

Dole spokesman Walt Riker said yesterday that the Kansas Republican has suggested to administration and congressional budget negotiators that capital gains be packaged separately from a deficit-reduction agreement, along with child care and other "goodies" that would enhance its chances for passage.

"The more people look at it, the more it makes sense," said Riker. "It's common sense."

Dole's proposal marked the first time congressional Republicans publicly urged Bush to rethink his position on capital gains.

But White House spokesman Steve Hart said Bush's position remained unchanged. He said the president is firm in his insistence that a capital gains tax cut be part of any deal to reduce the deficit.

Congressional and administration negotiators thus far have been unable to agree on a combination of spending cuts and tax increases to meet their goal of a $500 billion, five-year deficit reduction package, with Democrats saying that Bush's insistence on a capital gains cut is the key stumbling block.

After 10 days of negotiations at Andrews Air Force Base failed to produce an agreement, the talks shifted back to Capitol Hill, where the bipartisan congressional leadership and top administration officials continue to seek a solution. Riker said the latest round of talks remains at a "near impasse."

Negotiators have until Oct. 1 to break the budget deadlock.

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