Pocketbooks, Politics Favor Budget
Battle Ahead in Congress
Millions of Americans will find something extra in their pocketbooks from the historic budget deal reached by President Clinton and the Republican leadership.
Those selling a home or shares in a mutual fund could pay less capital gains tax on the profits - assuming Congress ratifies the package.
Farmers and owners of small business can leave property to their children with less chance of Uncle Sam taking a large chunk. The amount exempted from estate taxes will double to $1.2 million in phases.
Parents contemplating huge bills for children planning on college will pocket not only a tax break but perhaps a scholarship.
Up to 5 million children of the poor will qualify for free health insurance.
Legal immigrants will not lose federal welfare and disability benefits. The last Congress had eliminated these benefits.
But the deal won't be without cost for those of you who pay certain taxes.
Seniors will pay $1 a month extra for Medicare. But much of the savings will come from physicians, hospitals, and others in the medical community. Their incomes will decrease to produce the bulk of a $115 billion savings over five years.
Incomes will also shrink for corporations in the defense industry. The new budget includes some $85 billion in unspecified cuts over five years.
A tax on air-travel tickets will be renewed, costing a bundle for business and leisure travelers.
The deal does not include any legislated change in the consumer price index. So the indexation of Social Security payments and of income taxes will not be altered.