Lazio, Clinton argue economics in upstate New York

From CNN Producer Phil Hirschkorn

BUFFALO, New York (CNN) -- U.S. Senate hopefuls Rep. Rick Lazio and first lady Hillary Rodham Clinton took aim at one another's economic plans Monday during campaign swings in upstate New York.

Lazio, a four-term Republican congressman from Long Island, is sticking with his vision of across-the-board tax cuts to boost New York's economy, likening his Democratic opponent's plan to "Cuomonomics" -- the policies of past Democratic New York Gov. Mario Cuomo.

Rep. Rick Lazio, right, listens as New York Gov. George Pataki speaks during a campaign stop in Buffalo, Monday.

Clinton said Lazio's plan would "explode the deficit" and touted her own plan, which calls for "targeted" tax cuts. She said Lazio "has no plans for anything."

Before a crowd of supporters gathered near downtown Buffalo, Lazio pushed his plan, which includes lowering federal income tax rates, making Social Security taxes deductible from federal returns, and eliminating the estate tax and the so-called marriage penalty tax.

"We're going to send fewer dollars to Washington and keep more of those dollars here in western New York to create opportunity," Lazio said.

"Who gets hurt the most with higher taxes? New York. Who benefits the most with lower taxes? New York. It's not rocket science," Lazio said. "Let's lower taxes to protect New York and put more money back in our pockets."

Lazio was joined in Buffalo and later in Syracuse by Republican Gov. George Pataki, who made the case for state income tax cuts when he defeated Cuomo in 1994. Pataki carried Erie County, home to Buffalo and its surrounding towns, by 34,000 votes in that election.

"It's 1994 all over again. When you take a look at Mrs. Clinton, when you think of her policies, it is Mario Cuomo redux," Pataki said.

Pataki was a little-known state senator when he challenged Cuomo, a three-term incumbent and national figure. On Monday, the governor attempted to draw parallels between his race and Lazio's.

"Mrs. Clinton, just as I said to Mario Cuomo -- you can't do it, but I can," Pataki said. "When it comes to cutting taxes in 1994, you can't do across-the-board tax cuts. Rick Lazio can and will when he's a U.S. senator for western New York," Pataki said.

Clinton called the comparison "laughable and desperate."

"He's going to continue with his campaign of insults and negativity and attacks, and I'm going to keep talking about the issues -- just as I have for more than a year," she said.

Clinton visited a Bethlehem steel plant just south of Buffalo on Monday. Once home to 22,000 workers, the plant now employs 850. But the plant, which makes galvanized steel coils, is productive -- it was named General Motors' top auto parts supplier the last five years in a row.

"I want to go to the Senate to fight for the men and women who work in this plant and the other good people I have been meeting with throughout western New York. I want to be a strong advocate for the manufacturing sector, for small business, and I have a plan with specific ideas about how to do that," Clinton said.

Clinton said her economic plan would yield 200,000 New York jobs over six years. It calls for specific tax credits to encourage business investment, especially in the high-tech sector, and to reward job creation. She also calls for targeted personal tax cuts, such as for college tuition and long-term health care.

First lady Hillary Rodham Clinton talks to an apple grower from Sodus, New York, on Saturday, October 14, as her daughter, Chelsea, right, listens.

Pataki said his policies of lower taxes and less regulation have already created 700,000 private sector jobs during his five-plus years in office.

"Our policies work. Her plan will not work," Pataki said.

Lazio described Clinton's plan as "hollow" and expensive, pointing to a recent National Taxpayers Union report that estimates Clinton's various spending plans would cost the federal treasury more than $2 trillion.

That would likely lead to tax hikes, Lazio predicted, as it did under Cuomo.

"Targeted tax relief for him was another way for him trying to mask the fact he was for tax increases, for punishing the work ethic, for destroying jobs, for forcing our factories to close and move out of state. We don't want to go back on that path, we want to march forward," Lazio said.

Clinton argued that Lazio supports the tax cut plans offered by the GOP presidential nominee, Texas Gov. George W. Bush. That plan, Clinton said, "would explode the deficit and send us back in the wrong direction."