Senate Republicans have not settled on a tax cut target yet, Senate Majority Leader Lott said Friday, asserting that despite concerns raised by Budget Chairman Domenici, he would not be adverse to using discretionary spending cuts to help pay for tax cuts.
Asked what the size of the tax cut is likely to be, Lott told reporters, "It depends on all we're able to get done," adding that is a question that has not yet been resolved. Conservatives have demanded that Lott support the $101 billion tax cut in the House budget, but he has said he could settle on $60 billion or $70 billion--much to the dismay of the conservatives.
On Friday, Lott said he would like to do more than $101 billion in tax cuts. Asked about using discretionary savings for the tax cut, Lott said, "I don't have any problem with that," adding that opponents will have a hard time explaining they were not willing to spend less and cut taxes.
But Domenici has said he is worried about trying to use discretionary savings for a tax cut, since it would take 60 votes to waive budget rules for such a plan. A Senate Republican leadership aide said that while Domenici reflects a concern shared by others, "I don't think anything's off the table." The leadership aide said Senate Republican leaders have discussed reconciliation this week and have agreed that it will center on tax cuts, but added, "I don't think anyone can tell you what number is achievable."
He said he believes Republicans can agree on tax cut policies, such as phasing out the so-called marriage penalty, but the size of the tax cut has yet to be determined. Meanwhile, one conservative pushing for the $101 billion goal said he is worried that senators are saying they would have a difficulty achieving that level. "I haven't heard anything good," said Sen. Rod Grams, R-Minn.
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