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Clinton Seeks Child Care Credit
By Sonya Ross
Associated Press Writer
Sunday, January 17, 1999; 8:01 p.m. EST
WASHINGTON (AP) -- President Clinton's fiscal 2000 budget will
propose a $500 child care tax credit for stay-at-home parents, an idea
pushed last year by congressional Republicans, administrations sources
said Sunday.
Clinton's proposal would allow a tax credit of up to $500 for families with
a child aged 1 or younger, according to a White House official who spoke
on condition of anonymity.
The sliding-scale credit, pegged to family income, is expected to cost $1.3
billion over five years, allowing for an average tax credit of $178, the
official said.
Clinton is expected to outline the proposal in his State of the Union
address Tuesday night before a joint session of Congress.
The tax credit is expected to benefit 1.7 million families. A family earning
$30,000 per year with one working parent would be able to claim the full
$500 in child care expenses, rather than the $250 they are allowed under
current law.
The proposal is part of a larger child care package that seeks a total of
$18 billion over five years to aid working poor and middle class families.
That broader package -- absent the stay-at-home-mom credit -- is similar
to what Clinton sought last year: $7.5 billion for expanding child care
subsidies to serve an extra 1.15 million children; $5 billion in tax credits
for non-parental care of a child younger than 13, or a disabled dependent
or spouse; $3 billion for grants for preschool programs; a $500 million tax
credit for businesses that provide child care services for their employees;
$600 million for after-school programs and $173 million for inspections,
training and other efforts to improve child care.
Last year, Clinton put forth a $22 billion proposal, tied to revenue from
the proposed tobacco settlement, but it went nowhere on Capitol Hill, in
part because Republicans said it failed to address parents who do not
work outside the home.
With the revamped plan, the White House was hoping to take some steam
out of that argument, giving GOP leaders what amounts to a political dare.
"There's no excuse for Congress not acting on child care now," the
official said.
However, the official declined to reveal how the tax credit would be
financed, other than to say it would be through "a host of options" being
exercised in Clinton's budget and would not be tied to a tobacco tax
increase.
White House officials said Clinton's specific tax credit for stay-at-home
parents is patterned after one offered last year by Sen. Christopher Dodd,
D-Conn. The rest of Clinton's package incorporates elements of a Senate
proposal offered by Sens. Orrin Hatch and John Chafee, they said.
The Chafee-Hatch bill called for $15 billion to $16 billion over five years,
including a dependent-care tax credit for stay-at-home parents of up to
$900 per year per family.
Clinton to Propose Tax Break
Clinton on TV
For Parents Who Stay at Home
By The Associated Press
ABC. CBS. Fox, NBC and
By ROBERT PEAR
the uninsured are growing even as
PBS will carry President Clin-
ton's State of the Union ad-
WASHINGTON, Jan. 18 - Presi-
the nation's economy expands and
employment rises to record levels.
dress live tonight.
dent Clinton will embrace an idea
long favored by conservatives and
About 11 million people are unin-
On cable, the all-news net-
propose a tax break for parents who
sured and work for companies with
works, CNN, Fox News Chan-
stay home to care for their children,
fewer than 25 employees. They ac-
nel and MSNBC, as well as
count for nearly half of all uninsured
CNBC and C-Span. also will
White House officials said today.
workers and nearly one-fourth of
have the address.
The proposed tax credit, up to $250
a year for each child under age 1, is
people without insurance.
Administration officials said to-
smaller than the tax breaks pro-
posed by Republicans for the same
night that Mr. Clinton would also ask
no such link this year.
Congress for $1 billion to help poor
purpose. But the Administration now
Ari Fleischer, a spokesman for
people move from welfare to work
accepts the Republican argument
Republicans on the House Ways and
next year Labor Department offi-
that the Government should recog-
Means Committee, said the Presi-
cials said the money could help
nize the value of services provided
dent's proposals on child care and
200,000 people, by subsidizing jobs
by a parent. generally the mother,
health insurance were intriguing.
for school dropouts, long-term wel-
who forgoes paid employment to
But he said: "We have two ques-
fare recipients and other people with
stay home and care for the children.
tions. Is the White House inviting the
few skills. The plan was reported
The President believes we should
Internal Revenue Service deeper
tonight by The Washington Post.
respect and support parents in what-
into people's lives by complicating
In the Balanced Budget Act of
the tax code? Is the Clinton Adminis-
ever choices they make, whether to
1997, Congress provided $1.5 billion a
work or to stay at home," said Bruce
tration paying for its initiatives by
year in "welfare-to-work grants" for
N. Reed, Mr. Clinton's chief domestic
raising taxes on the American peo-
1998 and 1999. The President wants
policy adviser. "Mothers or fathers
ple?'
to extend the program for one more
who stay home to raise a child need
Republicans last year faulted Mr.
year, on the assumption that people
help too."
Clinton for not proposing assistance
who remain on welfare need extra
In the past, Mr. Clinton has offered
to parents who stay home to care for
help getting jobs.
children. The criticism came from
several proposals to make child care
White House officials said the tax
moderates like Senator Chafee and
more affordable to working parents
break for small businesses would
Administration officials said Mr.
conservatives like Senator Larry E.
cost $44 million over five years. It
Clinton would probably highlight his
Craig of Idaho. "The Government
would be available only to companies
child care proposals, including the
should not discriminate against par-
that did not provide health benefits to
tax credit, in his State of the Union
ents who decide to stay home and
employees in 1997 or 1998.
Message to Congress on Tuesday.
take care of their kids," Mr. Craig
The proposed tax credit for stay-
said.
Republicans led by Senator John H.
at-home parents is part of a package
Chafee of Rhode Island proposed a
On another issue, the Administra-
of measures to subsidize child care
tion has decided to seek a substantial
similar tax credit last year. and they
that would cost more than $18 billion
intend to try again this year.
increase in Federal grants to the
over five years. The tax credit would
In addition, White House officials
states for services to people with
cost $1.3 billion over five years and
said, Mr. Clinton will propose a tax
severe mental illnesses. The grants
would benefit 1.7 million families, the
would total $358 million, an increase
credit to encourage small businesses
White House said.
of $70 million, or 24 percent, over this
to provide health insurance to em-
Other items in the package would
year's level.
ployees. Under the proposal, employ-
give additional tax relief based on
ers with fewer than 50 workers could
income and child care expenses to
get the tax credits for two years if
working parents, to help offset child
they established or joined a purchas-
care costs, and would expand the
ing coalition to obtain health insur-
main Federal program that subsi-
ance.
dizes child care for families SO poor
Employers would receive a tax
that they pay no taxes.
credit of $500 a year for each family
Most of the child care proposals,
insured through a coalition, and $200
aside from the assistance for parents
for each person covered as an indi-
who stay home, were included in Mr.
vidual.
Clinton's budget last year. He an-
Small businesses are much less
nounced the proposals with fanfare
likely than big companies to provide
at the White House in January 1998,
health insurance to their employees,
but he did not fight hard for them on
in part because the premiums are
Capitol Hill. The proposals died in
higher and the costs less predictable.
Congress, in part because their fi-
Small businesses have generated
nancing was linked directly to a big
most of the nation's new jobs, and
tobacco bill, strenuously opposed by
this helps explain why the ranks of
the tobacco industry. There will be
The
New
Bork
Times
TUESDAY,
JANUARY
19,
1999
China Tightens
Even before the recent setbacks,
elected by the people. and the kind of
writers could not directly discuss
indirect democracy that the leaders
Rein on Writers
multiparty politics or the possibility
in Beijing say China has. Mr. Liu said
of ending the Communist Party's
he had not heard any official com-
monopoly on power. Still, the last
plaints.
And Publishers
year has been a relatively louse peri-
A number of other small journals
od, with more books frankly discuss-
and magazines explore once-hereti-
ing issues like corruption, crime, the
cal political and economic ideas, in-
effects of different economic strat-
cluding one called Reading Tour that
By ERIK ECKHOLM
egies and - in a guarded, theoretical
has just appeared in the southern
way - the nature of democracy.
province of Guangdong.
BEIJING, Jan. 18 - As they very
Such books, in turn, have served as
Its maiden issue includes articles
publicly send the most outspoken de-
the basis for seminars at universities
with titles like "Freedom of Thought
mocracy campaigners to prison, Chi-
and Democratic Politics" and "The
na's leaders have also quietly tight-
and bookstores. Only a small number
of those books that the Government
Loneliness of the Dissident," and an
ened the screws on liberal intellectu-
als, journalists and publications.
sees as most objectionable have been
essay by the late anti-Communist
In the last few weeks the Commu-
directly curbed.
philosopher Isaiah Berlin.
Many newspapers and magazines
But a highbrow Beijing journal
nist Party's powerful Department of
around the country have explored
called Way, which under its mandate
Propaganda has closed down an in-
similar topics and exposed local cor-
for exploration of the natural and
fluential book publisher in Beijing
ruption and policy failures.
social sciences has carried venture-
and an adventurous newspaper in
The publications campaign is di-
some articles on politics and society,
the southern city of Guangzhou.
rected by the party's Department of
is under sharp pressure from the
It has sent stern warnings to some
Propaganda, under the leadership of
authorities, who have told its editors
magazines and newspapers that
Ding Guangen, a onetime bridge
to stick to more scientific subjects or
strayed too far from the prescribed
partner of the late leader Deng Xiao-
close down, people who have written
line, forced some editors and writers
ping who has become President
for the journal say.
out of their jobs and halted distribu-
Jiang Zemin's chief ideological en-
tion of several books that delve into
In an interview last week, Feng
forcer.
Xiaozhe, the editorial director of
political alternatives or embarrass-
A joke that plays on the phonetic
ing episodes in the history of Com-
Way, which has a monthly circula-
elements of Mr. Ding's name has
munist rule.
tion of 20,000, would only say: "We
been circulating among intellectuals,
Although some writings and meet-
have not received any official writ-
who say he has a talent for three
ings that are relatively free by Chi-
ten complaint from the Department
things: "ding," which can mean
na's standards continue, the cam-
of Propaganda." In the absence of a
"keeping watch"; "guan," which
paign reflects the leadership's con-
formal complaint, he said, the jour-
can mean "closing down," and
nal will continue its efforts to pro-
cern for stability as it confronts ris-
"gen," which can mean "rooting
ing unemployment and protests by
mote "cross-disciplinary inquiry."
out."
workers and farmers.
On Saturday more than 40 of the
Perhaps the most far-reaching act
Officials may also be worried
journal's editors, authors and sup-
was the suspension in early January
about dissent related to the 10th anni-
porters met to discuss the challenge,
of operations of one of China's bold-
said one of those who took part in the
versary this June of the violent
est and most influential book publish-
smashing of pro-democracy demon-
meeting. While the group, including
ers pending "rectification" of the
strations in Tiananmen Square and
some eminent scientists, endorsed
staff. Two top editors at the compa-
its current direction, the editors said
the 50th anniversary of the founding
ny, China Today Publishers, have
future issues would include more ar-
of the People's Republic of China on
been ordered to write self-criticisms
ticles related to science. Whether
Oct. 1.
a time-honored Communist tech-
that will satisfy the authorities is
In the last year, liberals who want
nique for forcing wayward individ-
unclear.
more open discussion of political al-
uals to acknowledge ideological er-
ternatives have been testing the lim-
Officials have had special concern
rors - said people familiar with the
about some newspapers in Guang-
its of public discourse. But in recent
situation, who spoke on condition of
dong Province, which borders Hong
interviews, many scholars, maga-
anonymity.
Kong. It has a more advanced mar-
zine editors and journalists said they
China Today Publishers, based in
ket economy and generally more
now sensed a shrinking of the bound-
Beijing and operating under the au-
freewheeling attitude than most of
aries.
thority of an information unit of the
China.
None of those interviewed said
Communist Party, issued several of
An adventurous weekly, Cultural
they believed that China was in the
last year's most widely discussed
Times, published under the auspices
throes of an all-out crackdown or a
books, including "China's Pitfall," a
of the Guangzhou Academy of Social
major shift in policy like the one in
withering analysis of corruption in
late 1989 that followed the suppres-
the dismantling of state enterprises;
Sciences and distributed in major
cities around China, was shut down
sion of the Tiananmen Square pro-
"Crossed Swords," a strong attack
by the authorities on Dec. 30.
tests, when liberals were purged
on the remaining opponents of the
In December the authorities or-
from many institutions.
country's move toward a market
The York
TUESDAY, JANUARY
dered the dismissal of the chief edi-
Since many books, magazines and
economy and looser social control;
tor and other senior leaders of an-
newspapers touch on sensitive topics
and "Political China," a collection of
these days, the repressive measures
essays on political change by schol-
other newspaper in Guangzhou, the
provincial capital, called the Guang-
to date seem almost arbitrary. They
ars and former officials.
zhou-Hong Kong Information Daily.
have not been mentioned in the press
In the case of "Political China,"
A Communist Party circular said
here. But word spreads quickly, and
which quickly sold out its first print-
the paper, which concentrated on
the authorities may hope that by
ing of 30,000 last fall, the authorities
economic news, had interfered with
setting examples they will induce
forbade a second printing. Other
the work of the country by reporting
others to exercise new caution.
books from the publisher have not
too critically on economic goals,
"I don't think there will be a gen-
been quashed in this manner.
among other issues, the Hong Kong
eral crackdown on liberal intellectu-
But several books recently issued
newspaper Ming Pao repported.
als," said one such scholar, Liu Jun-
by other publishers, volumes of es-
A nationally prominent weekly in
ning, a political theorist with the
says on politics or memoirs of past
Guangzhou, Southern Weekend,
Chinese Academy of Social Sciences
ideological battles, have been re-
which has a reputation for writing
and editor of a journal on political
stricted, usually by barring new
about ignored social controversies,
thought. "But they may tighten up on
printings or distribution or even book
has also felt the Government's sting.
publications, making it more diffi-
The authorities have ordered the pa-
reviews.
cult for people to get their ideas out."
So far, at least, the suppression of
per to discipline some editors and
Some intellectuals interviewed
writers and to dismiss a regular col-
said that in today's China, with bur-
liberal writing is not universal. Mr.
umnist who has written about cor-
geoning outlets for publishing. so
Liu, the political theorist, edits a
rupt and incompetent officials, jour-
many intellectuals chafing to explore
journal of political thought called
nalists said.
new ideas and so many eager read-
Res Publica that has operated on the
But one of the affected scholars
ers, the Government probably lacked
edge.
said this week, "We'll be trying in
the ability to suppress debate alto-
The latest issue of the journal,
every way possible to keep writing
gether. The Internet and electronic
which has a circulation of 10,000,
and publishing and discussing."
mail, for example, have given many
contains essays exploring the differ-
"The public demand is huge" for
Chinese new access to unauthorized
ence between direct democracy, in
new ideas about politics and econom-
writing.
which top levels of government are
ics, he said, "and the supply is lim-
ited."
stay
for
credit
Clinton Seeks Child Care Credit
By Sonya Ross
Associated Press Writer
Sunday, January 17, 1999; 8:01 p.m. EST
WASHINGTON (AP) -- President Clinton's fiscal 2000 budget will
propose a $500 child care tax credit for stay-at-home parents, an idea
pushed last year by congressional Republicans, administrations sources
said Sunday.
Clinton's proposal would allow a tax credit of up to $500 for families with
a child aged 1 or younger, according to a White House official who spoke
on condition of anonymity.
The sliding-scale credit, pegged to family income, is expected to cost $1.3
billion over five years, allowing for an average tax credit of $178, the
official said.
Clinton is expected to outline the proposal in his State of the Union
address Tuesday night before a joint session of Congress.
The tax credit is expected to benefit 1.7 million families. A family earning
$30,000 per year with one working parent would be able to claim the full
$500 in child care expenses, rather than the $250 they are allowed under
current law.
The proposal is part of a larger child care package that seeks a total of
$18 billion over five years to aid working poor and middle class families.
That broader package -- absent the stay-at-home-mom credit -- is similar
to what Clinton sought last year: $7.5 billion for expanding child care
subsidies to serve an extra 1.15 million children; $5 billion in tax credits
for non-parental care of a child younger than 13, or a disabled dependent
or spouse; $3 billion for grants for preschool programs; a $500 million tax
credit for businesses that provide child care services for their employees;
$600 million for after-school programs and $173 million for inspections,
training and other efforts to improve child care.
Last year, Clinton put forth a $22 billion proposal, tied to revenue from
the proposed tobacco settlement, but it went nowhere on Capitol Hill, in
part because Republicans said it failed to address parents who do not
work outside the home.
With the revamped plan, the White House was hoping to take some steam
out of that argument, giving GOP leaders what amounts to a political dare.
"There's no excuse for Congress not acting on child care now," the
official said.
However, the official declined to reveal how the tax credit would be
financed, other than to say it would be through "a host of options" being
exercised in Clinton's budget and would not be tied to a tobacco tax
increase.
White House officials said Clinton's specific tax credit for stay-at-home
parents is patterned after one offered last year by Sen. Christopher Dodd,
D-Conn. The rest of Clinton's package incorporates elements of a Senate
proposal offered by Sens. Orrin Hatch and John Chafee, they said.
The Chafee-Hatch bill called for $15 billion to $16 billion over five years,
including a dependent-care tax credit for stay-at-home parents of up to
$900 per year per family.
Date: 01/18/99 Time: 01:00
CClinton expected to call for helping stay-at-home parents and uninsured
(Washington-AP) -- A tax credit for stay-at-home parents, and
better health care for the uninsured are expected to be among the
items in President Clinton's State of the Union speech, Tuesday.
Administration sources say the president will call for a tax
credit for families with a child one year of age or younger. A
White House official says Clinton wants a maximum credit of 500
dollars, though the average family would save around 178 dollars.
And Clinton will reportedly look to spend a (b) billion dollars
on better health care for the 32 (m) million American adults who
lack insurance.
That's according to his Health and Human Services secretary,
who's quoted in Monday's Washington Post. The paper says the money
would be spent encouraging hospitals and clinics to keep tabs on
patients and make sure they get needed treatment.
(SOUND: 4:32 aes)
(GraphicsBank: search for President Clinton)
APNP-01-18-99 0116EST
Date: 01/17/99 Time: 21:43
CPresident planning to adapt GOP child care tax credit plan
(Washington-AP) -- A child care tax credit for stay-at-home
parents could be on the fast track to approval.
Administration sources say President Clinton will propose a
credit for families with a child who's one year old or younger.
Republicans pushed a similar idea last year, and now Clinton is
set to offer his own version in Tuesday's State of the Union
address.
The tax credit would be based on an income scale, with a maximum
benefit of 500 dollars per family. The average would be about 180
dollars.
It's expected to benefit one-point-seven (m) million families.
Clinton's proposal would be part of a larger child care package.
SOUND: Upcoming
APNP-01-17-99 2159EST
WSJ
1/15/98
GOP Steps Up
Continued From Page A3
we've strengthened Social Security," a
White House spokesman said.
Mr. Clinton, however, does plan to pro-
Its Campaign
pose $1.3 billion in child-care tax credits
over five years for families that have a
child under one and at least one parent at
For Tax Cuts
home. The administration estimates that
on average. qualifying families would re-
ceive a tax credit of $173 a year for each
child.
By JACOB M. SCHLESINGER
Mr. Domenici, who has long been a
Staff Reporter of THE WALL STREET JOURNAL
leading force for fiscal discipline within
WASHINGTON - With projections for
Republican ranks on Capitol Hill, justified
federal budget surpluses growing ever
his new tax-cutting enthusiasm with new
larger, congressional Republicans are in-
surplus projections recently completed by
tensifying their campaign for big tax cuts.
his Senate budget-committee staff. Those
New 10-year forecasts show "a surplus
forecasts show a total budget surplus from
over and above what's needed for Social
Oct. 1, 1998, through Sept. 30, 2008, equal-
Security," Senate Budget Committee
ing $2.1 trillion, and the total surplus, ex-
Chairman Pete Domenici said yesterday
cluding the Social Security trust fund, of
on CBS-TV's "Face The Nation.' "We're
more than $500 billion.
going to give most of that back to the Amer-
That is much higher than the last offi-
ican people, as much as $600 billion" over
cial legislative forecast issued over the
the next decade.
summer by the Congressional Budget Of-
Specifically, Mr. Domenici said he is
fice. At that point, the 10-year forecast was
crafting a plan that would cut income-tax
expected to reach about $1.5 trillion, and
rates 4% in the first year and ultimately
the non-Social Security surplus just about
lower rates 15% below present levels.
$30 billion. The CBO will release its own up-
The New Mexico Republican said his
dated forecast later this month, which will
proposal already has "tremendous sup-
also show an even rosier outlook than was
port" among fellow GOP legislators, but it
expected a few months ago.
is likely to be bitterly fought by President
Yet even with the bigger surplus num-
Clinton and congressional Democrats. In
bers, Democrats are likely to dismiss Mr.
his State of the Union address tomorrow
Domenici's plans. Implicit in the influen-
night, Mr. Clinton is expected to oppose a
tial GOP leader's comments yesterday was
general tax cut and call instead for devot-
the assertion that no additional infusion of
ing a good part of the budget surplus to bol-
funds would be needed in the coming
stering or supplementing Social Security.
decades for Social Security. But the very
Mr. Clinton will also lay out other priorities
reason that Mr. Clinton has called-with
for using the surplus, such as increased
great political success-to hold off spend-
spending on education, health care and de-
ing the surplus until Social Security is fixed
fense.
is that the government retirement plan is
"The president continues to believe that
projected to go broke by the middle of the
we should reserve the entire surplus until
next century.
Please Turn to Page A6, Column 1
"We're going to need some of the non-
Social Security surplus to fix Social Secu-
rity," said Thomas Kahn, the top Democ-
ratic staffer on the House Budget Commit-
tee.
Last fall, House Republicans crafted an
ambitious package of tax cuts with an eye
on winning voter support in the November
elections. But the package died in the Sen-
ate because of strict limits on tax cuts en-
acted in the eΓa of big budget deficits. Mr.
Domenici has also proposed easing those
rules.
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"ocrText": "Clinton Seeks Child Care Credit\nBy Sonya Ross\nAssociated Press Writer\nSunday, January 17, 1999; 8:01 p.m. EST\nWASHINGTON (AP) -- President Clinton's fiscal 2000 budget will\npropose a $500 child care tax credit for stay-at-home parents, an idea\npushed last year by congressional Republicans, administrations sources\nsaid Sunday.\nClinton's proposal would allow a tax credit of up to $500 for families with\na child aged 1 or younger, according to a White House official who spoke\non condition of anonymity.\nThe sliding-scale credit, pegged to family income, is expected to cost $1.3\nbillion over five years, allowing for an average tax credit of $178, the\nofficial said.\nClinton is expected to outline the proposal in his State of the Union\naddress Tuesday night before a joint session of Congress.\nThe tax credit is expected to benefit 1.7 million families. A family earning\n$30,000 per year with one working parent would be able to claim the full\n$500 in child care expenses, rather than the $250 they are allowed under\ncurrent law.\nThe proposal is part of a larger child care package that seeks a total of\n$18 billion over five years to aid working poor and middle class families.\nThat broader package -- absent the stay-at-home-mom credit -- is similar\nto what Clinton sought last year: $7.5 billion for expanding child care\nsubsidies to serve an extra 1.15 million children; $5 billion in tax credits\nfor non-parental care of a child younger than 13, or a disabled dependent\nor spouse; $3 billion for grants for preschool programs; a $500 million tax\ncredit for businesses that provide child care services for their employees;\n$600 million for after-school programs and $173 million for inspections,\ntraining and other efforts to improve child care.\nLast year, Clinton put forth a $22 billion proposal, tied to revenue from\nthe proposed tobacco settlement, but it went nowhere on Capitol Hill, in\npart because Republicans said it failed to address parents who do not\nwork outside the home.\nWith the revamped plan, the White House was hoping to take some steam\nout of that argument, giving GOP leaders what amounts to a political dare.\n\"There's no excuse for Congress not acting on child care now,\" the\nofficial said.\nHowever, the official declined to reveal how the tax credit would be\nfinanced, other than to say it would be through \"a host of options\" being\nexercised in Clinton's budget and would not be tied to a tobacco tax\nincrease.\nWhite House officials said Clinton's specific tax credit for stay-at-home\nparents is patterned after one offered last year by Sen. Christopher Dodd,\nD-Conn. The rest of Clinton's package incorporates elements of a Senate\nproposal offered by Sens. Orrin Hatch and John Chafee, they said.\nThe Chafee-Hatch bill called for $15 billion to $16 billion over five years,\nincluding a dependent-care tax credit for stay-at-home parents of up to\n$900 per year per family.\nClinton to Propose Tax Break\nClinton on TV\nFor Parents Who Stay at Home\nBy The Associated Press\nABC. CBS. Fox, NBC and\nBy ROBERT PEAR\nthe uninsured are growing even as\nPBS will carry President Clin-\nton's State of the Union ad-\nWASHINGTON, Jan. 18 - Presi-\nthe nation's economy expands and\nemployment rises to record levels.\ndress live tonight.\ndent Clinton will embrace an idea\nlong favored by conservatives and\nAbout 11 million people are unin-\nOn cable, the all-news net-\npropose a tax break for parents who\nsured and work for companies with\nworks, CNN, Fox News Chan-\nstay home to care for their children,\nfewer than 25 employees. They ac-\nnel and MSNBC, as well as\ncount for nearly half of all uninsured\nCNBC and C-Span. also will\nWhite House officials said today.\nworkers and nearly one-fourth of\nhave the address.\nThe proposed tax credit, up to $250\na year for each child under age 1, is\npeople without insurance.\nAdministration officials said to-\nsmaller than the tax breaks pro-\nposed by Republicans for the same\nnight that Mr. Clinton would also ask\nno such link this year.\nCongress for $1 billion to help poor\npurpose. But the Administration now\nAri Fleischer, a spokesman for\npeople move from welfare to work\naccepts the Republican argument\nRepublicans on the House Ways and\nnext year Labor Department offi-\nthat the Government should recog-\nMeans Committee, said the Presi-\ncials said the money could help\nnize the value of services provided\ndent's proposals on child care and\n200,000 people, by subsidizing jobs\nby a parent. generally the mother,\nhealth insurance were intriguing.\nfor school dropouts, long-term wel-\nwho forgoes paid employment to\nBut he said: \"We have two ques-\nfare recipients and other people with\nstay home and care for the children.\ntions. Is the White House inviting the\nfew skills. The plan was reported\nThe President believes we should\nInternal Revenue Service deeper\ntonight by The Washington Post.\nrespect and support parents in what-\ninto people's lives by complicating\nIn the Balanced Budget Act of\nthe tax code? Is the Clinton Adminis-\never choices they make, whether to\n1997, Congress provided $1.5 billion a\nwork or to stay at home,\" said Bruce\ntration paying for its initiatives by\nyear in \"welfare-to-work grants\" for\nN. Reed, Mr. Clinton's chief domestic\nraising taxes on the American peo-\n1998 and 1999. The President wants\npolicy adviser. \"Mothers or fathers\nple?'\nto extend the program for one more\nwho stay home to raise a child need\nRepublicans last year faulted Mr.\nyear, on the assumption that people\nhelp too.\"\nClinton for not proposing assistance\nwho remain on welfare need extra\nIn the past, Mr. Clinton has offered\nto parents who stay home to care for\nhelp getting jobs.\nchildren. The criticism came from\nseveral proposals to make child care\nWhite House officials said the tax\nmoderates like Senator Chafee and\nmore affordable to working parents\nbreak for small businesses would\nAdministration officials said Mr.\nconservatives like Senator Larry E.\ncost $44 million over five years. It\nClinton would probably highlight his\nCraig of Idaho. \"The Government\nwould be available only to companies\nchild care proposals, including the\nshould not discriminate against par-\nthat did not provide health benefits to\ntax credit, in his State of the Union\nents who decide to stay home and\nemployees in 1997 or 1998.\nMessage to Congress on Tuesday.\ntake care of their kids,\" Mr. Craig\nThe proposed tax credit for stay-\nsaid.\nRepublicans led by Senator John H.\nat-home parents is part of a package\nChafee of Rhode Island proposed a\nOn another issue, the Administra-\nof measures to subsidize child care\ntion has decided to seek a substantial\nsimilar tax credit last year. and they\nthat would cost more than $18 billion\nintend to try again this year.\nincrease in Federal grants to the\nover five years. The tax credit would\nIn addition, White House officials\nstates for services to people with\ncost $1.3 billion over five years and\nsaid, Mr. Clinton will propose a tax\nsevere mental illnesses. The grants\nwould benefit 1.7 million families, the\nwould total $358 million, an increase\ncredit to encourage small businesses\nWhite House said.\nof $70 million, or 24 percent, over this\nto provide health insurance to em-\nOther items in the package would\nyear's level.\nployees. Under the proposal, employ-\ngive additional tax relief based on\ners with fewer than 50 workers could\nincome and child care expenses to\nget the tax credits for two years if\nworking parents, to help offset child\nthey established or joined a purchas-\ncare costs, and would expand the\ning coalition to obtain health insur-\nmain Federal program that subsi-\nance.\ndizes child care for families SO poor\nEmployers would receive a tax\nthat they pay no taxes.\ncredit of $500 a year for each family\nMost of the child care proposals,\ninsured through a coalition, and $200\naside from the assistance for parents\nfor each person covered as an indi-\nwho stay home, were included in Mr.\nvidual.\nClinton's budget last year. He an-\nSmall businesses are much less\nnounced the proposals with fanfare\nlikely than big companies to provide\nat the White House in January 1998,\nhealth insurance to their employees,\nbut he did not fight hard for them on\nin part because the premiums are\nCapitol Hill. The proposals died in\nhigher and the costs less predictable.\nCongress, in part because their fi-\nSmall businesses have generated\nnancing was linked directly to a big\nmost of the nation's new jobs, and\ntobacco bill, strenuously opposed by\nthis helps explain why the ranks of\nthe tobacco industry. There will be\nThe\nNew\nBork\nTimes\nTUESDAY,\nJANUARY\n19,\n1999\nChina Tightens\nEven before the recent setbacks,\nelected by the people. and the kind of\nwriters could not directly discuss\nindirect democracy that the leaders\nRein on Writers\nmultiparty politics or the possibility\nin Beijing say China has. Mr. Liu said\nof ending the Communist Party's\nhe had not heard any official com-\nmonopoly on power. Still, the last\nplaints.\nAnd Publishers\nyear has been a relatively louse peri-\nA number of other small journals\nod, with more books frankly discuss-\nand magazines explore once-hereti-\ning issues like corruption, crime, the\ncal political and economic ideas, in-\neffects of different economic strat-\ncluding one called Reading Tour that\nBy ERIK ECKHOLM\negies and - in a guarded, theoretical\nhas just appeared in the southern\nway - the nature of democracy.\nprovince of Guangdong.\nBEIJING, Jan. 18 - As they very\nSuch books, in turn, have served as\nIts maiden issue includes articles\npublicly send the most outspoken de-\nthe basis for seminars at universities\nwith titles like \"Freedom of Thought\nmocracy campaigners to prison, Chi-\nand Democratic Politics\" and \"The\nna's leaders have also quietly tight-\nand bookstores. Only a small number\nof those books that the Government\nLoneliness of the Dissident,\" and an\nened the screws on liberal intellectu-\nals, journalists and publications.\nsees as most objectionable have been\nessay by the late anti-Communist\nIn the last few weeks the Commu-\ndirectly curbed.\nphilosopher Isaiah Berlin.\nMany newspapers and magazines\nBut a highbrow Beijing journal\nnist Party's powerful Department of\naround the country have explored\ncalled Way, which under its mandate\nPropaganda has closed down an in-\nsimilar topics and exposed local cor-\nfor exploration of the natural and\nfluential book publisher in Beijing\nruption and policy failures.\nsocial sciences has carried venture-\nand an adventurous newspaper in\nThe publications campaign is di-\nsome articles on politics and society,\nthe southern city of Guangzhou.\nrected by the party's Department of\nis under sharp pressure from the\nIt has sent stern warnings to some\nPropaganda, under the leadership of\nauthorities, who have told its editors\nmagazines and newspapers that\nDing Guangen, a onetime bridge\nto stick to more scientific subjects or\nstrayed too far from the prescribed\npartner of the late leader Deng Xiao-\nclose down, people who have written\nline, forced some editors and writers\nping who has become President\nfor the journal say.\nout of their jobs and halted distribu-\nJiang Zemin's chief ideological en-\ntion of several books that delve into\nIn an interview last week, Feng\nforcer.\nXiaozhe, the editorial director of\npolitical alternatives or embarrass-\nA joke that plays on the phonetic\ning episodes in the history of Com-\nWay, which has a monthly circula-\nelements of Mr. Ding's name has\nmunist rule.\ntion of 20,000, would only say: \"We\nbeen circulating among intellectuals,\nAlthough some writings and meet-\nhave not received any official writ-\nwho say he has a talent for three\nings that are relatively free by Chi-\nten complaint from the Department\nthings: \"ding,\" which can mean\nna's standards continue, the cam-\nof Propaganda.\" In the absence of a\n\"keeping watch\"; \"guan,\" which\npaign reflects the leadership's con-\nformal complaint, he said, the jour-\ncan mean \"closing down,\" and\nnal will continue its efforts to pro-\ncern for stability as it confronts ris-\n\"gen,\" which can mean \"rooting\ning unemployment and protests by\nmote \"cross-disciplinary inquiry.\"\nout.\"\nworkers and farmers.\nOn Saturday more than 40 of the\nPerhaps the most far-reaching act\nOfficials may also be worried\njournal's editors, authors and sup-\nwas the suspension in early January\nabout dissent related to the 10th anni-\nporters met to discuss the challenge,\nof operations of one of China's bold-\nsaid one of those who took part in the\nversary this June of the violent\nest and most influential book publish-\nsmashing of pro-democracy demon-\nmeeting. While the group, including\ners pending \"rectification\" of the\nstrations in Tiananmen Square and\nsome eminent scientists, endorsed\nstaff. Two top editors at the compa-\nits current direction, the editors said\nthe 50th anniversary of the founding\nny, China Today Publishers, have\nfuture issues would include more ar-\nof the People's Republic of China on\nbeen ordered to write self-criticisms\nticles related to science. Whether\nOct. 1.\na time-honored Communist tech-\nthat will satisfy the authorities is\nIn the last year, liberals who want\nnique for forcing wayward individ-\nunclear.\nmore open discussion of political al-\nuals to acknowledge ideological er-\nternatives have been testing the lim-\nOfficials have had special concern\nrors - said people familiar with the\nabout some newspapers in Guang-\nits of public discourse. But in recent\nsituation, who spoke on condition of\ndong Province, which borders Hong\ninterviews, many scholars, maga-\nanonymity.\nKong. It has a more advanced mar-\nzine editors and journalists said they\nChina Today Publishers, based in\nket economy and generally more\nnow sensed a shrinking of the bound-\nBeijing and operating under the au-\nfreewheeling attitude than most of\naries.\nthority of an information unit of the\nChina.\nNone of those interviewed said\nCommunist Party, issued several of\nAn adventurous weekly, Cultural\nthey believed that China was in the\nlast year's most widely discussed\nTimes, published under the auspices\nthroes of an all-out crackdown or a\nbooks, including \"China's Pitfall,\" a\nof the Guangzhou Academy of Social\nmajor shift in policy like the one in\nwithering analysis of corruption in\nlate 1989 that followed the suppres-\nthe dismantling of state enterprises;\nSciences and distributed in major\ncities around China, was shut down\nsion of the Tiananmen Square pro-\n\"Crossed Swords,\" a strong attack\nby the authorities on Dec. 30.\ntests, when liberals were purged\non the remaining opponents of the\nIn December the authorities or-\nfrom many institutions.\ncountry's move toward a market\nThe York\nTUESDAY, JANUARY\ndered the dismissal of the chief edi-\nSince many books, magazines and\neconomy and looser social control;\ntor and other senior leaders of an-\nnewspapers touch on sensitive topics\nand \"Political China,\" a collection of\nthese days, the repressive measures\nessays on political change by schol-\nother newspaper in Guangzhou, the\nprovincial capital, called the Guang-\nto date seem almost arbitrary. They\nars and former officials.\nzhou-Hong Kong Information Daily.\nhave not been mentioned in the press\nIn the case of \"Political China,\"\nA Communist Party circular said\nhere. But word spreads quickly, and\nwhich quickly sold out its first print-\nthe paper, which concentrated on\nthe authorities may hope that by\ning of 30,000 last fall, the authorities\neconomic news, had interfered with\nsetting examples they will induce\nforbade a second printing. Other\nthe work of the country by reporting\nothers to exercise new caution.\nbooks from the publisher have not\ntoo critically on economic goals,\n\"I don't think there will be a gen-\nbeen quashed in this manner.\namong other issues, the Hong Kong\neral crackdown on liberal intellectu-\nBut several books recently issued\nnewspaper Ming Pao repported.\nals,\" said one such scholar, Liu Jun-\nby other publishers, volumes of es-\nA nationally prominent weekly in\nning, a political theorist with the\nsays on politics or memoirs of past\nGuangzhou, Southern Weekend,\nChinese Academy of Social Sciences\nideological battles, have been re-\nwhich has a reputation for writing\nand editor of a journal on political\nstricted, usually by barring new\nabout ignored social controversies,\nthought. \"But they may tighten up on\nprintings or distribution or even book\nhas also felt the Government's sting.\npublications, making it more diffi-\nThe authorities have ordered the pa-\nreviews.\ncult for people to get their ideas out.\"\nSo far, at least, the suppression of\nper to discipline some editors and\nSome intellectuals interviewed\nwriters and to dismiss a regular col-\nsaid that in today's China, with bur-\nliberal writing is not universal. Mr.\numnist who has written about cor-\ngeoning outlets for publishing. so\nLiu, the political theorist, edits a\nrupt and incompetent officials, jour-\nmany intellectuals chafing to explore\njournal of political thought called\nnalists said.\nnew ideas and so many eager read-\nRes Publica that has operated on the\nBut one of the affected scholars\ners, the Government probably lacked\nedge.\nsaid this week, \"We'll be trying in\nthe ability to suppress debate alto-\nThe latest issue of the journal,\nevery way possible to keep writing\ngether. The Internet and electronic\nwhich has a circulation of 10,000,\nand publishing and discussing.\"\nmail, for example, have given many\ncontains essays exploring the differ-\n\"The public demand is huge\" for\nChinese new access to unauthorized\nence between direct democracy, in\nnew ideas about politics and econom-\nwriting.\nwhich top levels of government are\nics, he said, \"and the supply is lim-\nited.\"\nstay\nfor\ncredit\nClinton Seeks Child Care Credit\nBy Sonya Ross\nAssociated Press Writer\nSunday, January 17, 1999; 8:01 p.m. EST\nWASHINGTON (AP) -- President Clinton's fiscal 2000 budget will\npropose a $500 child care tax credit for stay-at-home parents, an idea\npushed last year by congressional Republicans, administrations sources\nsaid Sunday.\nClinton's proposal would allow a tax credit of up to $500 for families with\na child aged 1 or younger, according to a White House official who spoke\non condition of anonymity.\nThe sliding-scale credit, pegged to family income, is expected to cost $1.3\nbillion over five years, allowing for an average tax credit of $178, the\nofficial said.\nClinton is expected to outline the proposal in his State of the Union\naddress Tuesday night before a joint session of Congress.\nThe tax credit is expected to benefit 1.7 million families. A family earning\n$30,000 per year with one working parent would be able to claim the full\n$500 in child care expenses, rather than the $250 they are allowed under\ncurrent law.\nThe proposal is part of a larger child care package that seeks a total of\n$18 billion over five years to aid working poor and middle class families.\nThat broader package -- absent the stay-at-home-mom credit -- is similar\nto what Clinton sought last year: $7.5 billion for expanding child care\nsubsidies to serve an extra 1.15 million children; $5 billion in tax credits\nfor non-parental care of a child younger than 13, or a disabled dependent\nor spouse; $3 billion for grants for preschool programs; a $500 million tax\ncredit for businesses that provide child care services for their employees;\n$600 million for after-school programs and $173 million for inspections,\ntraining and other efforts to improve child care.\nLast year, Clinton put forth a $22 billion proposal, tied to revenue from\nthe proposed tobacco settlement, but it went nowhere on Capitol Hill, in\npart because Republicans said it failed to address parents who do not\nwork outside the home.\nWith the revamped plan, the White House was hoping to take some steam\nout of that argument, giving GOP leaders what amounts to a political dare.\n\"There's no excuse for Congress not acting on child care now,\" the\nofficial said.\nHowever, the official declined to reveal how the tax credit would be\nfinanced, other than to say it would be through \"a host of options\" being\nexercised in Clinton's budget and would not be tied to a tobacco tax\nincrease.\nWhite House officials said Clinton's specific tax credit for stay-at-home\nparents is patterned after one offered last year by Sen. Christopher Dodd,\nD-Conn. The rest of Clinton's package incorporates elements of a Senate\nproposal offered by Sens. Orrin Hatch and John Chafee, they said.\nThe Chafee-Hatch bill called for $15 billion to $16 billion over five years,\nincluding a dependent-care tax credit for stay-at-home parents of up to\n$900 per year per family.\nDate: 01/18/99 Time: 01:00\nCClinton expected to call for helping stay-at-home parents and uninsured\n(Washington-AP) -- A tax credit for stay-at-home parents, and\nbetter health care for the uninsured are expected to be among the\nitems in President Clinton's State of the Union speech, Tuesday.\nAdministration sources say the president will call for a tax\ncredit for families with a child one year of age or younger. A\nWhite House official says Clinton wants a maximum credit of 500\ndollars, though the average family would save around 178 dollars.\nAnd Clinton will reportedly look to spend a (b) billion dollars\non better health care for the 32 (m) million American adults who\nlack insurance.\nThat's according to his Health and Human Services secretary,\nwho's quoted in Monday's Washington Post. The paper says the money\nwould be spent encouraging hospitals and clinics to keep tabs on\npatients and make sure they get needed treatment.\n(SOUND: 4:32 aes)\n(GraphicsBank: search for President Clinton)\nAPNP-01-18-99 0116EST\nDate: 01/17/99 Time: 21:43\nCPresident planning to adapt GOP child care tax credit plan\n(Washington-AP) -- A child care tax credit for stay-at-home\nparents could be on the fast track to approval.\nAdministration sources say President Clinton will propose a\ncredit for families with a child who's one year old or younger.\nRepublicans pushed a similar idea last year, and now Clinton is\nset to offer his own version in Tuesday's State of the Union\naddress.\nThe tax credit would be based on an income scale, with a maximum\nbenefit of 500 dollars per family. The average would be about 180\ndollars.\nIt's expected to benefit one-point-seven (m) million families.\nClinton's proposal would be part of a larger child care package.\nSOUND: Upcoming\nAPNP-01-17-99 2159EST\nWSJ\n1/15/98\nGOP Steps Up\nContinued From Page A3\nwe've strengthened Social Security,\" a\nWhite House spokesman said.\nMr. Clinton, however, does plan to pro-\nIts Campaign\npose $1.3 billion in child-care tax credits\nover five years for families that have a\nchild under one and at least one parent at\nFor Tax Cuts\nhome. The administration estimates that\non average. qualifying families would re-\nceive a tax credit of $173 a year for each\nchild.\nBy JACOB M. SCHLESINGER\nMr. Domenici, who has long been a\nStaff Reporter of THE WALL STREET JOURNAL\nleading force for fiscal discipline within\nWASHINGTON - With projections for\nRepublican ranks on Capitol Hill, justified\nfederal budget surpluses growing ever\nhis new tax-cutting enthusiasm with new\nlarger, congressional Republicans are in-\nsurplus projections recently completed by\ntensifying their campaign for big tax cuts.\nhis Senate budget-committee staff. Those\nNew 10-year forecasts show \"a surplus\nforecasts show a total budget surplus from\nover and above what's needed for Social\nOct. 1, 1998, through Sept. 30, 2008, equal-\nSecurity,\" Senate Budget Committee\ning $2.1 trillion, and the total surplus, ex-\nChairman Pete Domenici said yesterday\ncluding the Social Security trust fund, of\non CBS-TV's \"Face The Nation.' \"We're\nmore than $500 billion.\ngoing to give most of that back to the Amer-\nThat is much higher than the last offi-\nican people, as much as $600 billion\" over\ncial legislative forecast issued over the\nthe next decade.\nsummer by the Congressional Budget Of-\nSpecifically, Mr. Domenici said he is\nfice. At that point, the 10-year forecast was\ncrafting a plan that would cut income-tax\nexpected to reach about $1.5 trillion, and\nrates 4% in the first year and ultimately\nthe non-Social Security surplus just about\nlower rates 15% below present levels.\n$30 billion. The CBO will release its own up-\nThe New Mexico Republican said his\ndated forecast later this month, which will\nproposal already has \"tremendous sup-\nalso show an even rosier outlook than was\nport\" among fellow GOP legislators, but it\nexpected a few months ago.\nis likely to be bitterly fought by President\nYet even with the bigger surplus num-\nClinton and congressional Democrats. In\nbers, Democrats are likely to dismiss Mr.\nhis State of the Union address tomorrow\nDomenici's plans. Implicit in the influen-\nnight, Mr. Clinton is expected to oppose a\ntial GOP leader's comments yesterday was\ngeneral tax cut and call instead for devot-\nthe assertion that no additional infusion of\ning a good part of the budget surplus to bol-\nfunds would be needed in the coming\nstering or supplementing Social Security.\ndecades for Social Security. But the very\nMr. Clinton will also lay out other priorities\nreason that Mr. Clinton has called-with\nfor using the surplus, such as increased\ngreat political success-to hold off spend-\nspending on education, health care and de-\ning the surplus until Social Security is fixed\nfense.\nis that the government retirement plan is\n\"The president continues to believe that\nprojected to go broke by the middle of the\nwe should reserve the entire surplus until\nnext century.\nPlease Turn to Page A6, Column 1\n\"We're going to need some of the non-\nSocial Security surplus to fix Social Secu-\nrity,\" said Thomas Kahn, the top Democ-\nratic staffer on the House Budget Commit-\ntee.\nLast fall, House Republicans crafted an\nambitious package of tax cuts with an eye\non winning voter support in the November\nelections. But the package died in the Sen-\nate because of strict limits on tax cuts en-\nacted in the eΓa of big budget deficits. Mr.\nDomenici has also proposed easing those\nrules."
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