As President Clinton prepared to visit depressed parts of the United States, Republican lawmakers yesterday announced tax proposals to encourage investment in communities left out of the current economic boom.
Incentives designed to boost reconstruction and employment in poor areas will be included in a tax package backed by House Republicans, Speaker J. Dennis Hastert (R-Ill.) told Clinton in a letter dated July 4.
"Before you embark on a tour of economically distressed areas tomorrow, I urge you to support [the] strong, bipartisan . . . American Community Renewal Act," Hastert wrote.
"In fact, I am proud to announce that the House Ways and Means Committee will include [that bill's] tax-related initiatives in the upcoming taxpayer relief bill moving through the Congress," Hastert added.
The Renewal Act would seek to help 100 communities "through targeted pro-growth tax initiatives to create jobs, encourage personal savings, foster home ownership and clean up neighborhoods on former industrial sites so new businesses can emerge," Hastert said.
The measure is sponsored by Reps. Danny K. Davis (D-Ill.) and James M. Talent (R-Mo.) as well as House Republican Conference Chairman J.C. Watts (Okla.).
The White House's Office of Management and Budget said yesterday it had not yet had time to review the tax proposals. But spokeswoman Linda Ricci said that if Hastert was "moving toward the same private-sector approach" as Clinton's new market initiative for poor areas, "then we believe he is moving in the right direction."