The Clinton administration is willing to delay tax cuts until after Congress votes to eliminate federal budget deficits, Treasury Secretary Robert Rubin said Sunday.
Rubin also said he expected inflation to remain low despite last week’s interest rate hike.
A week after House Speaker Newt Gingrich first suggested tax cuts could be delayed, there appears to be growing consensus for a two-track budget approach. A similar tack is being considered in the Senate.
Rubin stressed that White House officials believe there is room in the budget for some middle class tax breaks, but he said his colleagues wouldn’t insist on linking the tax cuts to a balanced budget deal.