Hillary Clinton takes aim at Lazio tax-cut plan

From CNN Producer Phil Hirschkorn

NEW YORK (CNN) -- U.S. Senate hopeful Hillary Rodham Clinton derided Republican rival Rick Lazio's tax cut proposals as "Bush lite" on Monday, as she sought to draw parallels between the Long Island congressman's agenda and that of GOP presidential nominee George W. Bush.

First lady Hillary Rodham Clinton greets commuters at the Parkchester subway stop in the Bronx borough of New York, Monday

Campaigning in New York City, the first lady called Lazio's 10-year, $776 billion tax cut proposals a "scheme" that she said "doesn't add up." Her comments echo those made by Vice President Al Gore, the Democratic presidential hopeful, when referring to a similar tax plan offered by his Republican rival.

Although Lazio's plan appears to be considerably less than the Bush plan, which is estimated to cost $1.3 billion over a decade, Clinton told New York voters that Lazio was hiding the "real numbers." She said Lazio's plan could cost more than $1 trillion, but accused him of being unwilling to admit that.

"My opponent should stop misleading New Yorkers about his tax plan," she said in a speech to New York's AFL-CIO convention. "He should give us the real numbers, because if you can't trust what he says about his numbers, how can we trust our future to him?"

As part of his Senate campaign, Lazio has proposed cutting the capital gains tax, rolling back federal taxes on Social Security benefits, expanding the IRA contribution limit and abolishing the estate and so-called marriage penalty taxes. The four-term congressman defended his plan at a Sunday news conference in Chappaqua -- the suburban Westchester County town where Clinton now lives.

"Three-quarters of all Americans pay more in Social Security taxes than they do income taxes," Lazio said. "Three-quarters of the people who would get this relief make under $100,000 a year. People are being taxed on top of income that's already been taxed. It is wrong and we need to address it."

"This is a plan that I think is great for New York, is great for America," he said. "It speaks to job creation, it speaks to opening up opportunities for New York men and women to go to college and to pursue an advanced degree. It speaks to the basic peace of mind that comes with retirement security."

Mirroring the debate at the top of their parties' tickets, both Clinton and Lazio are striving to appear as the champion of working- and middle-class voters. During her speech before union members, Clinton stressed that Lazio had received an average 34 percent approval rating from the AFL-CIO during his tenure in Congress.

Rep. Rick Lazio signs a poster for a supporter during a fundraiser in Chappaqua, New York, Sunday

"My opponent has turned his back on working people and organized labor year after year after year, because 34 percent is a failing grade in any course anywhere in any school in New York," Clinton said.

The union, which counts 2.5 million members in New York state, has already endorsed the first lady in the Senate race. She criticized Lazio for being allied with the conservative Republican leaders on Capitol Hill, including former House Speaker Newt Gingrich.

"I don't think anybody in New York wants to vote for somebody who has the record he has, standing there with Gingrich, voting to cut $270 billion from Medicare, voting to end national nursing home standards, voting to abolish the department of education, voting to double Medicare premiums. That is not good for New York, I don't care where you're from," she said.

Earlier, the congressman's campaign released his past tax returns, after weeks of badgering by state Democrats. They contained details of his profits from trading stock options in an investment firm run by political supporters. Lazio made close to a 600 per cent profit on a relatively small investment when the firm was subsequently bought out. The Securities and Exchange Commission last week said it would not pursue a case against Lazio.