Around the Nation

GOP debates proposed tax cut combination

WASHINGTON - Congressional Republicans are debating whether or not to combine tax cuts they prize in a package with spending increases President Clinton wants, part of a GOP effort to control the agenda as Election Day approaches.

Some Republicans see the strategy as a way to divide Democrats by luring some to support the tax package, then daring Clinton to cast a risky veto. Others worry the tactic could backfire if the package dies of its own weight in Congress, opposed by conservatives who oppose more spending and GOP moderates leery of using budget surpluses for tax cuts.

Either way, the internal GOP deliberations underline the party's efforts to gauge how severely the Monica Lewinsky affair has weakened Clinton's political clout.

"I think the guy is in a mood to fight," Rep. David McIntosh (R
-Ind.), said. "He's in the past been able to change the subject by picking fights."

The maneuvering over the tax package, which the House Ways and Means Committee plans to vote on today, also highlights the uncertainty many Democrats have about whether Clinton will stand by them in a battle with Republicans.

"I think the critical test is going to be the tax cut issue and whether or not he compromises or stands his ground," said Rep. James Moran (D-Va.) "A lot of people feel there will be a compromise, that he's not confident that he can withstand the same kind of test that he withstood in 1995."

Shareholders to OK union of automakers

DETROIT - Shareholders of Chrysler Corp. and Daimler-Benz AG plan to meet tomorrow to bless the pending marriage of the two automakers, from which the powerhouse DaimlerChrysler AG will be born by year's end.

If the $38 billion stock swap is approved as expected, the meetings in Wilmington, Del., and Stuttgart, Germany, will mark the last time the shareholders gather as owners of the separate companies.

The proposed combination of the No. 3 U.S. automaker with German's largest company was announced in May and has passed its biggest regulatory hurdles.

With tomorrow's meetings, it enters its final, most critical stage.

The Chrysler meeting is expected to be a brief affair, as most votes will have already been cast by mail or via the Internet. The company is expecting only about 200 shareholders to show up at the Hotel du Pont.

Some opinion is expected from

Chrysler shareholders and employees who view the deal as an ill-advised takeover of a profitable American company by a stodgy German holding company. They have camhe of suitable companies together," Rowen said.

Whitewater trial delayed for week

SANTA MONICA, Calif. - The embezzlement trial for Whitewater figure Susan McDougal was delayed for a week to accommodate witnesses' schedules.

McDougal was warned by the judge that she faces a contempt citation if she refuses to sit still during testimony.

During the hearing Tuesday, McDougal brought her fist loudly down onto the defense table and swirled nearly one full turn in her chair.

"It's not acceptable to this court," Superior Court Judge Leslie Light said yesterday. "If we have repetition of that conduct, there's going to be two possibilities." The first is to fine or jail McDougal, and the second is to send her to a "listening room" where she can monitor the proceedings.

09-17-98

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