Saturday, December 15, 2012

That night

That night, in a televised address from the Oval Office, I made one last pitch for public support for the plan, saying it would create eight million jobs in the next four years, and announcing that I would sign an executive order the following day to establish a deficit-reduction trust fund, assuring that all the new taxes and spending cuts would be used for that purpose only. The trust fund was especially important to Senator Dennis DeConcini of Arizona, and I credited him for the idea in the TV address. Of the six senators who had voted against the plan the first time, DeConcini was my only hope. I had had the others to dinner, met with and called them, and had their closest friends in the administration lobby them, to no avail. If DeConcini didnt change, we were beat.
The next day, he did, saying he would vote yes because of the trust fund. Now, if Bob Kerrey stayed with us we would get fifty votes in the Senate, and Al Gore could break the tie again. But before we got there, the budget first had to pass the House. We had one more day to find a majority of 218 votes, and we still werent there. More than thirty Democrats were wavering. They were afraid of the taxes, though we had done printouts for each of the members showing how many people in their districts would get a tax cut under the EITC, as compared with those who would get an income tax increase. In many cases, the ratio was ten to one or better, and in barely more than a dozen were their constituents so well off that the district would see more tax increases than decreases. Still, they were all worried about the gas tax. I could have passed the plan easily had I dropped the gas tax and offset the loss by abandoning the EITC tax cut. It would have been far less politically damaging. Poor working people had no lobbyists in Washington; they would never have known. But I would have. Besides, if we were going to soak the rich, the bond market wanted us to spray the middle class with a little bit of pain.
That afternoon, Leon Panetta and House majority leader, Dick Gephardt, who was working tirelessly for the budget, had struck a deal with Congressman Tim Penny of Minnesota, the leader of a group of conservative Democrats who wanted more spending cuts, promising the budget cutters another vote during the fall appropriations process to cut spending even more. Penny was satisfied, and his approval brought us seven or eight more votes.
We lost two of our earlier yes votes when Billy Tauzin of Louisiana, who later became a Republican, and Charlie Stenholm of Texas, who represented a district where most of the voters were Republican, said they would vote no. They hated the gas tax and said the unified Republican opposition to the plan had convinced their constituents that it was nothing but a tax increase.
Less than an hour before the vote, I spoke with Congressman Bill Sarpalius from Amarillo, Texas, who had voted against the plan in May. In our fourth phone conversation of the day, Bill said he had decided to vote for the plan, because so many more of his constituents would get tax cuts than tax increases, and because Energy Secretary Hazel OLeary had pledged to shift more government work to the Pantex plant in his district. We made many commitments like that. Someone once said that the two things people should never watch being made are sausages and laws. It was ugly, and uncertain.

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