Republicans Split On Tax Cuts

President-elect George W. Bush may need to build coalitions within his own party if he hopes to make good on the centerpiece of his campaign: a $1.3 trillion dollar tax cut.

Amid new signs of an economic slowdown, Republicans are becoming skittish about such a huge giveback, reports CBS News Chief White House Correspondent John Roberts. Even before the president-elect arrives in Washington early next week, stress cracks are already forming within Republican Party ranks over the Bush proposal.

Bush and Vice President-elect Dick Cheney have expressed concerns that the slowdown in economic growth may lead to a recession and have said this is a major reason why Congress next year should pass their huge tax cut.

But House Speaker Dennis Hastert, R-Ill., favors passing smaller tax bills, such as repealing the estate tax.

"I wouldn't count on an across-the-board tax cut first," Hastert told CBS News Correspondent Phil Jones.

"I think we ought to look at these things incrementally and get one piece done at a time. I think that's when we've had the most success here."

Hastert said U.S. voters sent politicians a clear message in the 2000 election: "I think what the American people are saying is, 'Hey, let's get something done ... Let's not do all this political snarling back and forth.'"

President-elect Bush defended his plan Friday, saying, "I have made it clear to the speaker once before that I campaigned on a package that I thought was fair, fiscally sound and responsible."

He added: "I look forward to going to Washington to make the case" for the 10-year tax package.

But House Democrats like the idea of dealing with tax matters piecemeal - with one caveat.

"What you can't do is get to a huge number that would blow the deficit and budget by simply saying, 'We're doing them one at a time,'" said House Minority Leader Dick Gephardt, D-Mo.

Conservatives, remembering how they rammed through the Contract with America, are mounting another $5-10 million public relations blitz to make sure Republican leaders in Congress don't cave in to Democrats.

"There is a concern that the Republicans in Congress are already negotiating away the Bush agenda before he even gets to town," said Scott Reed, campaign manager for Bob Dole's failed 1996 presidential effort.

Congressional Republicans and Democrats appear to be getting along right now. But the big question is, can the Republicans keep peace in their own family?