Now, About That Contract

By David Seideman

In September, Newt Gingrich rallied more than 300 G.O.P. candidates in Washington to embrace the "Contract with America." President Clinton derided it but is now ready to bargain on certain parts.

Gingrich's Proposals

To revive the Reagan-Bush promises of the 1980s, a $500 per child tax credit and a tax cut for capital gains on investments.

Clinton's Response

"How will all this be paid for?" Clinton asked. But he may propose his own & family tax break and consider a capital-gains cut.

Gingrich's Proposals

A constitutional amendment that would require the federal budget be balanced by 2002, or seven years after enactment.

Clinton's Response

Clinton says that such automatic, across-the-board spending cuts are a gimmick and that the G.O.P. has not said what the cuts will be.

Gingrich's Proposals

A line-item veto provision that will permit the President to "single out wasteful spending in bills passed by Congress."

Clinton's Response

"I hope the Congress will do it quickly," Clinton says. "If they do, we'll bring the deficit down even more quickly."

Gingrich's Proposals

An anticrime package that would include limits on death-penalty appeals and more money for prisons and law enforcement.

Clinton's Response

Administration officials say they may shift some more prevention money from the crime bill to police forces and block grants.

Gingrich's Proposals

Welfare laws that would stop benefits for recipients after two years, enforce enrollment in work programs and cap spending.

Clinton's Response

"I think we will get an agreement," Clinton said. He would also set a two- year limit, but emphasizes costlier job-training bills.

Gingrich's Proposals

A "restoration" of national security to stanch spending cuts in the defense budget and resurrect the controversial Star Wars system.

Clinton's Response

Clinton has moved the opposite way, pledging to cut defense spending by twice as much as he had promised, now $120 billion over five years.