CONTRACT WITH AMERICA

THE BALTIMORE SUN

House Republicans vow to have these proposals voted on within 100 days of the new Congress:

1. BALANCED BUDGET

Constitutional amendment to require Congress to balance the federal budget by 2002. Amendment would have to be ratified by three-fourths of the states. Tax or deficit increases would require approval by three-fifths of Congress, except in case of war or threats to national security. Accompanying bill would give president power to veto individual items in spending bills.

Outlook: With GOP now in control, balanced budget amendment will probably pass Congress. President Clinton and Republicans both support presidential line-item veto authority.

2. CRIME

New mandatory minimum sentences. Less restrictive use of death penalty. Shifting of money from crime prevention to prison construction.

Outlook: GOP control -- with public pressure to do more about crime -- is expected to produce tougher crime-fighting measures.

3. WELFARE

Bar benefits to children born to mothers under 18. Deny increased aid for welfare mothers who have additional children. Cap spending of several welfare programs. Allow states to cut off all benefits to recipients after two years.

Outlook: Unclear. House Democrats and some GOP moderates in the Senate are likely to oppose some of the stricter measures.

4. CHILDREN

National tracking system for parents who don't make child-support payments. Tougher child pornography laws. Tax incentives to adoptive parents or to people who care for elderly relatives.

Outlook: Good.

5. TAX CUTS

Tax relief for the middle class, including a $500-a-child tax credit. The "marriage penalty" would be reduced. Curbs on IRA tax breaks for middle class would be eased.

Outlook: Uncertain.

6. NATIONAL SECURITY

Restrict the United Nations' ability to command U.S. troops abroad. The administration would be barred from contributing troops to the proposed U.N. force in Haiti that would replace the U.S. force there.

Outlook: Good. Has wide support.

7. SENIOR CITIZENS

A repeal of tax increases imposed last year on more affluent Social Security recipients and an increase in the outside income they can earn before they lose benefits.

Outlook: Good, if Republicans back offsetting spending cuts.

8. CAPITAL GAINS

A 50 percent cut in the tax on capital gains, which are profits from the sale of items such as stocks, bonds and art. Taxpayers could also adjust the purchase price of a capital gain to account for inflation, thus reducing the capital gain and the tax on it.

Outlook: Republicans favor a capital-gains tax cut as an economic boon. Many Democrats oppose it as a perk for the rich. Can GOP propose offsetting spending cuts to avoid raising the budget deficit?

9. LEGAL REFORMS

Allow judges to require someone who brings a lawsuit and loses to pay the lawyers' fees of both sides, as a way to reduce litigation. Limit punitive damages, which are intended to punish a losing defendant.

Outlook: Good. The power of the trial lawyers' lobby to oppose such measures has been diminished by the Democratic losses in Congress.

10. TERM LIMITS

A constitutional amendment would limit senators to 12 years and House members to either six or 12 years. If ratified by three-fourths of the states, term limits would probably apply only to lawmakers elected after the law takes effect.

Outlook: Uncertain. There is disagreement, even in the GOP.

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