On the Scene

Endorsed by Heritage, the Moynihan bill would reduce payroll taxes in two steps from the 7.65 per cent that took effect January 1 down to 6.55 per cent in 1991. It soon became obvious the Senator had caught Republicans napping.

“They’re all over the map on this one,” says one attendee. “Normally a Democratic call to cut taxes would split that party, but George Bush screwed it up by coming out against it. The result is that the Republicans are as divided over this as the Democrats.”