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Bill Clinton? Meh Think that was Contract With America ideas brought to you by Newt and the “Republican Revolution”

The House fulfilled Gingrich’s promise to bring all ten of the Contract’s issues to a vote within the first 100 days of the session. President Clinton called it the “Contract on America”.

Legislation proposed by the 104th United States Congress included term limits for Congressional Representatives, tax cuts, welfare reform, and a balanced budget amendment, as well as independent auditing of the finances of the House of Representatives and elimination of non-essential services such as the House barbershop and shoe-shine concessions. Following Gingrich’s first two years as House Speaker, the Republican majority was re-elected in the 1996 election, the first time Republicans had done so in 68 years, and the first time simultaneously with a Democratic president winning re-election.

Legislation:

Welfare reform

A central pledge of President Bill Clinton’s campaign was to reform the welfare system, adding changes such as work requirements for recipients. However, by 1994, the Clinton Administration appeared to be more concerned with pursuing a universal health care program. Gingrich accused Clinton of stalling on welfare, and proclaimed that Congress could pass a welfare reform bill in as little as 90 days. He insisted that the Republican Party would continue to apply political pressure to the President to approve their welfare legislation.

In 1996, after constructing two welfare reform bills that Clinton vetoed, Gingrich and his supporters pushed for passage of the Personal Responsibility and Work Opportunity Act, which was intended to reconstruct the welfare system. The act gave state governments more autonomy over welfare delivery, while also reducing the federal government’s responsibilities. It instituted the Temporary Assistance for Needy Families program, which placed time limits on welfare assistance and replaced the longstanding Aid to Families with Dependent Children program. Other changes to the welfare system included stricter conditions for food stamp eligibility, reductions in immigrant welfare assistance, and work requirements for recipients.The bill was signed into law by President Clinton on August 22, 1996.

In his 1998 book Lessons Learned the Hard Way, Gingrich encouraged volunteerism and spiritual renewal, placing more importance on families, creating tax incentives and reducing regulations for businesses in poor neighborhoods, and increasing property ownership by low-income families. He also praised Habitat for Humanity for sparking the movement to improve people’s lives by helping them build their own homes.

Balancing the federal budget

Although congressional Republicans had opposed Clinton’s Deficit Reduction Act of 1993, a key aspect of the 1994 Contract with America was the promise of a balanced federal budget. After the end of the government shutdown, Gingrich and other Republican leaders acknowledged that Congress would not be able to draft a balanced budget in 1996. Instead, they opted to approve some small reductions that were already approved by the White House and to wait until the next election season.

By May 1997, Republican congressional leaders reached a compromise with Democrats and President Clinton on the federal budget. The agreement called for a federal spending plan designed to reduce the federal deficit and achieve a balanced budget by 2002. The plan included a total of $152 billion in bipartisan tax cuts over five years.[50] Other major parts of the spending plan called for $115 billion to be saved through a restructuring of Medicare, $24 billion set aside to extend health insurance to children of the working poor, tax credits for college tuition, and a $2 billion welfare-to-work jobs initiative.

President Clinton signed the budget legislation in August 1997. At the signing, Gingrich gave credit to ordinary Americans stating, “It was their political will that brought the two parties together.”

In early 1998, with the economy performing better than expected, increased tax revenues helped reduce the federal budget deficit to below $25 billion. Clinton submitted a balanced budget for 1999, three years ahead of schedule originally proposed, making it the first time the federal budget had been balanced since 1969.[citation needed]
Taxpayer Relief Act of 1997

In 1997, President Clinton signed into effect the Taxpayer Relief Act of 1997, which included the largest capital gains tax cut in U.S. history. Under the act, the profits on the sale of a personal residence ($500,000 for married couples, $250,000 for singles) were exempted if lived in for at least 2 years over the last 5. (This had previously been limited to a $125,000 once-in-a-lifetime exemption for those over the age of 55.) There were also reductions in a number of other taxes on investment gains.

Additionally, the act raised the value of inherited estates and gifts that could be sheltered from taxation.[55] Gingrich has been credited with creating the agenda for the reduction in capital gains tax, especially in the “Contract with America”, which set out to balance the budget and implement decreases in estate and capital gains tax. Some Republicans felt that the compromise reached with Clinton on the budget and tax act was inadequate, however Gingrich has stated that the tax cuts were a significant accomplishment for the Republican Congress in the face of opposition from the Clinton administration. Gingrich along with Bob Dole had earlier set-up the Kemp Commission, headed by former US Secretary of Housing and Urban Development Jack Kemp, a tax reform commission that made several recommendations including that dividends, interest, and capital gains should be untaxed.

Other legislation

Among the first pieces of legislation passed by the new Congress under Gingrich was the Congressional Accountability Act of 1995, which subjected members of Congress to the same laws that apply to businesses and their employees, including the Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990. As a provision of the Contract with America, the law was symbolic of the new Republican majority’s goal to remove some of the entitlements enjoyed by Congress. The bill received near universal acceptance from the House and Senate and was signed into law on January 23, 1995.

Gingrich shut down the highly regarded Office of Technology Assessment, and relied instead on what the Bulletin of the Atomic Scientists called “self-interested lobbyists and think tanks”.