Clinton package buoyed by polls

PERHAPS IT was never realistic that President Clinton could end the bipartisan squabblings between Democrats and Republicans in Washington and harness all sides in the quest for national renewal. Barely two weeks old, his economic package has put paid to that.

Encouraged by a growing body of opinion that there is less to Mr Clinton's deficit-cutting plan than first met the eye, Republicans on Capitol Hill have launched an increasingly abrasive campaign to discredit it, arguing that it is short on genuine spending cuts and far too long on tax increases.

Apparently unimpressed, however, Mr Clinton has this week gone on to hint heavily that still greater tax increases may be in the offing - notably rises in so-called 'sin taxes' on cigarettes, tobacco and guns - to help finance the health care reforms now being put together by his wife, Hillary.

Beyond the political crossfire of Washington, however, the omens for Mr Clinton and his package remain encouraging. A new opinion poll, published by the Los Angeles Times yesterday, shows Americans supporting his tax-increase proposals by a margin of two to one. In the poll, 58 per cent said they fully approved of his economic plan, while only 27 per cent expressed opposition.

It may have been a reflection of the President's continuing confidence that he felt able yesterday to present his priorities for international economic relations, based on a commitment to free- trade. He does so in the knowledge that, among a majority of Americans on both sides of the political divide, protectionist sentiment is running very strong.

The atmosphere between the White House and the Republican camp - with whom Mr Clinton plans to hold a peace-making lunch next week - was deflated when the President's spokesman, George Stephanopoulos, accused the Republican Senate leader, Bob Dole, of 'carping and whining' about the President's programme. Mr Dole retorted: 'They ought to calm down, go out for a weekend, have a Diet Coke.'

Mr Clinton has also joined the fray, repeatedly challenging the Republicans to come forward with an alternative proposal. 'I have a difficult time taking these people seriously,' he said this week.

Criticism from outside the congressional trenches has increased this week. Analysts, even some friendly to the President, have highlighted the limited nature of his deficit-cutting goals, pointing out that even if all his measures worked, the deficit by 1997 would remain at more than 3 per cent of the Gross National Product.

A political commentator in the liberal-leaning Washington Post, David Broder, warned this week: 'His plan just doesn't achieve its advertised goals. And it will avail Clinton little to push his economic programme to passage if voters decide afterward that they have been misled about what it will do.'

The Republicans are themselves divided, with a substantial faction arguing against Mr Dole's strategy of early attack, opting to hold back and wait for popular dissatisfaction with the plan to coalesce. They are also in a kind of trap. Ideologically, they cannot propose new tax increases to improve the plan. But if they back additional spending cuts, Mr Clinton may happily embrace them.

But simply saying 'no' is not an option either. 'By totally rejecting the package and not having in hand any alternative, the Republicans have made themselves irrelevant,' said the Democratic pollster Stan Greenberg.

Mrs Clinton has so far made no decision on the option of 'sin taxes', officials said. But analysts warn that to finance universal health care, the White House may have to find dollars 90bn (pounds 63bn) in new revenue.