COSTS: Total price tag: $60 billion over five years. The money would come from $24 billion in spending cuts and a two-year freeze on discretionary spending that would save $52 billion, leaving an extra $16 billion for deficit reduction.
TAX CREDIT FOR CHILDREN: A $500 tax credit for all children ages 12 and under in families with adjusted gross income of up to $60,000 a year. Families earning between $60,000 and $75,000 a year could claim a reduced credit. Those earning more than $75,000 would not get any credit.
TAX DEDUCTION FOR EDUCATION: Families earning $100,000 a year or less could deduct up to $10,000 a year for college tuition or other post-high school education. Families earning between $100,000 and $120,000 would get a reduced reduction. Those earning more than $120,000 would not get a deduction.
INDIVIDUAL RETIREMENT ACCOUNTS: Families earning up to $100,000 annually and individuals earning up to $70,000 could take a tax deduction of up to $2,000 per person for putting BTC money into individual retirement accounts. The maximum IRA deduction would begin to phase out at an income of $80,000. Current law only allows IRA deductions for families earning up to $50,000.
WORKER RETRAINING: Sixty federal job-training programs would be consolidated in a sweeping reorganization that would provide workers with skills grants or vouchers worth $2,000 to $3,000 to use at the training center of their choice. Workers also would be eligible for income-contingent loans through an Individual Education Account.
SPENDING CUTS: All Cabinet departments would survive, but scores of programs would be reduced or eliminated. The biggest hits would come in the departments of Energy, Transportation, and Housing and Urban Development, along with the General Services Administration and the Office of Personnel Management. Much of the savings would be achieved by extending a freeze on discretionary government spending, now set to expire in 1998, for two more years.