Democrats Unite on Budget Plan

WASHINGTON —  House Democrats rallied around a liberal budget plan today that lays new taxes on the wealthy. Divided Republicans, meanwhile, seemed ready to ignore President Bush’s conclusion that a deep cut in the capital gains tax is dead.

“There was a very strong positive attitude on the part of members,” Speaker Thomas S. Foley (D-Wash.) told reporters after a Democratic caucus. “There’s a sense of unity.”

The Democratic plan would boost taxes on wealthier Americans and offer a small capital-gains tax cut for middle-income families. It is one of many budget proposals sprouting all over Capitol Hill amid frustration over Bush’s blurry position on taxing the rich.

House Republicans were honing a plan that would hold this year’s spending to last year’s levels. It would also cut the capital gains tax deeply while gently raising income taxes on the wealthy, a trade Bush likes but has said is unattainable because of Democratic opposition.

“We’re doing a House Republican position,” said Rep. Mickey Edwards (R-Okla.). “We’re not developing a White House position. That’s different.”

At the White House, President Bush said he was optimistic a “sound budget agreement” could be found.

“It will take a little work,” Bush said during a picture-taking session in the Oval Office with visiting leaders from the Soviet republic of Estonia. “Just stay calm--it will all work out.”

Bush’s spokesman, Marlin Fitzwater, ridiculed the Democratic plan, saying, “It’s the same Democratic approach we’ve seen for years and years: trying to increase spending and increase taxes to cover it.”

He said Bush would meet with various lawmakers during the day to urge adoption of a plan as close to the rejected $500-billion, five-year package as possible. “We want to keep the pressure on getting an agreement,” Fitzwater said.