PRESIDENT Clinton has proposed a $1.64 trillion (£1,000 billion) election year budget striking popular campaign themes of tax cuts and budget balancing goals, but unlikely to win support from a Republican led Congress.
The President's plan for the fiscal year starting October 1st projects a balanced budget by 2002. It also offers personal tax cuts of $107 billion, primarily for middle income earners, and business tax cuts of $12 billion.
The tax cuts would be partially paid for by $56.2 billion in higher business taxes and the closing of loopholes, including tighter capital gains tax rules.
For the most part, the plan merely provides details of proposals that President Clinton has already made and Republican congressional leaders have rejected. The economic outline was announced last month.
The budget will be taken up by Congress today and is expected ultimately to be rejected.
Congress has not even agreed on a 1996 budget because of disagreements over spending priorities, and disputes over long term means of balancing the budget have shut down the federal government twice in recent months.
The president has invited Republican leaders, including Senate Majority Leader, Mr Bob Dole, to White House talks today.
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