US Democrats push through fiscal probity rules

Jan 5, 2007, 23:21 GMT

Washington - US lower-house lawmakers Friday passed rules designed to rein in the budget deficit, part of the new Democratic majority's agenda for change in Washington politics.

The House of Representatives voted 280-152 to impose 'pay-as-you- go' budget rules on the chamber, forcing lawmakers to link any tax cuts or major new spending to savings elsewhere.

Two days into the new Congress, the measure marks the first ideological tussle between Democrats and President George W Bush, who has cut US taxes and urged Democrats not to raise them.

The tax cuts and the US-led wars in Afghanistan and Iraq have reversed the budget surplus Bush inherited from former President Bill Clinton. However, Bush has said he plans to give Congress a spending plan next month that would balance the budget by 2012.

The new Democratic Speaker of the House, Nancy Pelosi, said in her inaugural speech Thursday that she wants 'no new deficit spending,' but the Democrats have avoided saying whether they would raise taxes to achieve that goal.

House Democrats pushed through several other clean-government initiatives Friday, including one meant to stop House lawmakers from inserting spending on pet projects anonymously into bills - in what are known as earmarks, a practice that flourished during 12 years of Republican Party control.

On Thursday, within hours of installing the new Democratic leadership, the House voted to ban lawmakers from flying on corporate jets and from accepting gifts and meals from lobbyists.

US voters unhappy with the war in Iraq and scandals in Washington lifted the centre-left Democrats into control of both houses of Congress in November in a defeat for Bush's Republicans.

Seeking to put their stamp on Congress, House leaders have pledged to pass a package of initiatives in the session's early days, including measures to increase the minimum wage, expand stem-cell research, promote use of renewable energy and lower drug costs for the elderly.