Democrats unveil new "dream"

DENVER — Sen. Hillary Rodham Clinton, D-N.Y., on Monday accused Republicans under President Bush of economic mismanagement and favoring the rich as she outlined a Democratic campaign agenda of tax breaks and incentives designed to make the costs of health care, college and retirement more affordable for millions of Americans.

The former first lady delivered the keynote address at the centrist Democratic Leadership Council's summer meeting, unveiling the results of the "American Dream Initiative," a year-long effort she chaired on behalf of the DLC to produce a domestic platform that Democrats can take to voters this fall.

The agenda represents a renewed effort by Democrats to attract middle-class voters, some of whom shifted to the Republicans in 2002 and 2004 over concerns about national security and terrorism. The ideas also could form the backbone of Clinton's campaign message in 2008 if she decides to run for president, as many Democrats expect.

"The Republicans say the economy is great for everyone," Clinton said. "They've done nothing about these costs that are eating away at the paychecks of hard-working Americans. Democrats will work to get health-care costs down, to get college tuitions under control, to address the rising costs of gas prices, to cut middle-class taxes and reward companies that create jobs here at home."

Clinton argued that Democrats proved to be good economic stewards and protectors of the middle class during the administration of her husband, Bill Clinton. She said that, over the past six years, the GOP leadership has eroded the economic and income gains average workers enjoyed during the 1990s.

"A policy of fiscal discipline and budget surpluses was abandoned for one that racked up debt and claimed that deficits don't matter," Clinton said. "And a policy that focused on helping the middle class get bigger and healthier and stronger was replaced by one that helped the strong get stronger and the rich get richer."

Republican National Committee spokeswoman Tracey Schmitt contested Clinton's appraisal of the GOP's economic record. "Political theatrics aside, the reality is 5.4 million jobs have been created in the last three years alone," she said in an e-mail message. "Even a master politician can't manipulate those numbers."

Clinton was one of a handful of possible Democratic presidential candidates who spoke Monday. Others included Iowa Gov. Tom Vilsack, the Democratic Leadership Committee chairman, who said the DLC should seek to unify the party for the campaign ahead; Sen. Evan Bayh, D-Ind., who said Democrats must be credible on national security before voters will listen to them on other issues; and Gov. Bill Richardson, D-N.M.

The American Dream Initiative includes proposals that DLC President Bruce Reed said would cost $450 billion to $500 billion over 10 years. He said the cost could be offset by eliminating corporate subsidies in the tax code, cutting out 100,000 unnecessary federal contractors and making a more aggressive effort to identify and collect taxes now going uncollected by the Internal Revenue Service.

The initiative also calls for a return to pay-as-you-go budget rules in Washington, which mean spending on new programs must be offset by cuts elsewhere.

The centerpiece proposal would provide additional support for college costs, with the goal of increasing the number of college graduates by 1 million a year by 2015. The proposal includes $150 billion in block grants for the states to ease rising tuition costs and a consolidated tax credit worth $3,000 for students. To qualify, states and universities would have to limit tuition increases to the rate of inflation.

Other ideas include "baby bonds" that would create a government-funded savings account of $500 for every child born in the United States; a refundable tax credit to provide the down payment on a new home and universal health care for children.