The contract called for a constitutional balanced budget amendment and the line-item veto, which enables the President to delete specific items in appropriations bills without having to veto the entire piece of legislation; stiffer penalties for criminals and repeal of the prevention programs in my crime bill; welfare reform, with a two-year limit on able-bodied recipients; a $500 child tax credit, another
$500 credit for the care of a parent or grandparent, and tougher child-support enforcement; repeal of the taxes on upper-income Social Security recipients that were part of the 1993 budget; a 50 percent cut in the capital gains tax, and other tax cuts; an end to unfunded federal mandates on state and local government; a large increase in defense spending; tort reform to limit punitive damages; term limits for senators and representatives; a requirement that Congress, as an employer, follow all laws it has imposed on other employers; a reduction in congressional committee staffs by a third; and a requirement that 60
percent of each house of Congress approve any future tax increase.
I agreed with many of the particulars of the contract. I was already pushing welfare reform and tougher child-support enforcement, and had long supported the line-item veto and ending unfunded mandates. I liked the family tax credits. Though several of the specifics were appealing, the contract was, at its core, a simplistic and hypocritical document. In the twelve years before I became President, the Republicans, with the support of a few Democrats in Congress, had quadrupled the national debt by cutting taxes and increasing spending; now that Democrats were reducing the deficit, they wanted the Constitution to require a balanced budget, even as they recommended large tax cuts and big increases in defense spending without saying what other spending they would cut to pay for them. Just as they had done in the 1980s and would do again in the 2000s, the Republicans were trying to abolish arithmetic. As Yogi Berra said, it was déjà vu all over again, but in a nice new package. Besides giving the Republicans a national platform for the 1994 campaign, Gingrich provided them with a list of words to use in defining their Democratic opponents. His political action committee, GOPAC, published a pamphlet entitled
Newt suggested for labeling Democrats were: betray, cheat, collapse, corruption, crisis, decay, destruction, failure, hypocrisy, incompetent, insecure, liberal, lie, pathetic, permissive, shallow, sick, traitors. Gingrich was convinced that if he could institutionalize that kind of name-calling, he could define the Democrats into a minority party for a long time.
The Democrats thought the Republicans had made a critical error in announcing the contract, and proceeded to attack it by showing the large cuts in education, health care, and environmental protection that would be necessary to fund the tax cuts, increase defense, and balance the budget. They even renamed Newt’s plan the “Contract
Beyond attacking the Republicans, the Democrats were determined to fight the election the oldfashioned way, state by state, district by district. I had already done a lot of fund-raisers for them, but not a single one for a national campaign to advertise what we had accomplished, or what our future agenda would be in contrast to the Republican contract.
We capped off another productive legislative year on September 30, the last day of the fiscal year, by passing all thirteen appropriation bills on time, something that hadn’t happened since 1948. The appropriations represented the first back-to-back years of deficit reduction in two decades, reducing the federal payroll by 272,000, and still increasing investments in education and other important areas. It was an impressive achievement, but nowhere near as attention-grabbing as the balanced budget amendment.