A new version of the Contract with America will be released this Fall. The first Contract was an importart part of the GOP victory in 1994 when they captured both the House and Senate. The best part of the Contract was the one that was hardest to pass, the cut in capital gains rates from 28 to 20 percent in 1997. Welfare reform was another essential element and President Bill Clinton made this a key part of his 1996 re-election effort. Unfortunately the Supreme Court threw out the line item veto in 1998. One part of the Contract resulted from an override of a Clinton veto, and three other bill in Contract were enacted into law.
Democrats claim the Contract With America was a failure, but if this is so why did President Clinton sign those measures into law? The GOP never had a veto proof majority. Anything Clinton vetoed could not have been overridden by a Republican Congress.
Clinton not only signed them but he campaigned on them. The signature line of his 1995 State of the Union address was “The era of big government is over,” and he moved sharply to the center after the failures of 1993 and 1994.
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