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Clinton to unveil new federal budget plan

WASHINGTON -- The White House began unveiling its new seven-year budget-balancing proposal to congressional Democrats on yesterday, even as President Clinton delivered his long-promised coup-de-grace to a Republican plan he said bore "wrongheaded cuts and misplaced priorities."

Clinton dispatched Leon Panetta, his chief of staff, to the Capitol to brief House and Senate Democrats about the package, which the administration plans to present to Republicans when budget talks resume today.

Compared with a proposal Clinton made in June, the new plan will have deeper cuts in welfare and many domestic programs and additional limits on business tax breaks. It will call for the same savings of $124 billion from Medicare and $54 billion from Medicaid that he had sought earlier, and about the same $98 billion tax cut for families he had proposed.

In addition, it would contain a mechanism for forcing the federal deficit to reach zero, Panetta told reporters. He would reveal no details. But another administration official, speaking on condition of anonymity, said the White House might suggest that some of the tax cuts -- including the president's proposed $500 per child tax credit -- be withheld in any year that annual deficit targets were not achieved.

Simpson agrees to television interview

LOS ANGELES -- O.J. Simpson has agreed to an unrestricted interview with CNN -- at an undetermined date -- and is reportedly negotiating to proclaim his innocence in a multi-million dollar video and infomerical.

Greta Van Susteren, a lawyer who helped analyze Simpson's murder case for CNN, said he promised the network an interview with no ground rules during a four-hour conversation with her last weekend.

Simpson backed out of a scheduled NBC-TV interview in October after his lawyers warned that anything he said could be used against him in pending civil suits.

The former football star was acquitted Oct. 3 in the slayings of his ex-wife Nicole Brown Simpson and her friend Ronald Goldman. Their families filed wrongful-death lawsuits, and trial is tentatively set for April.

Simpson never took the stand at his yearlong murder trial but may have to in the civil cases.

Ethics committee to investigate Gingrich

WASHINGTON -- The House ethics committee yesterday approved an outside counsel to investigate Rep. Newt Gingrich's conduct, ensuring a protracted probe extending well into the 1996 election year. The vote was 10-0.

Gingrich's spokesman, Tony Blankley, and congressional sources said the counsel would investigate a college course taught by the House speaker and financed with tax-deductible donations.

The committee also found Gingrich violated a rule that prohibits mingling official and unofficial resources, according to sources who spoke on condition of anonymity. He did so by permitting a political adviser, Joseph Gaylord, to work out of his Capitol office, the sources said.

The committee dismissed a complaint that Gingrich received a gift of free cable television time and that a publisher's auction for his book, "To Renew America," was rigged. The auction drove up the advance Gingrich was offered to $4.5 million -- an amount he relinquished after intense criticism.

Michael Jackson taken to hospital

NEW YORK -- Michael Jackson collapsed on stage yesterday while rehearsing for a national television special and was taken to a hospital suffering from apparent dehydration.

Jackson was in stable condition and was undergoing tests, according to a statement from Beth Israel Medical Center North. He was being held overnight.

A police source, speaking condition of anonymity, said singer Janet Jackson went into the hospital to visit her ailing brother.

Emergency workers found a semiconscious Jackson lying on the side of the stage when they arrived at the Beacon Theater shortly after 5 p.m., Emergency Medical Service technician Kevin Barwick said.

"He was lethargic. He was speaking slowly, mumbling," said Barwick, who treated the pop star.

The 37-year-old singer appeared dehydrated and was treated with oxygen and intravenous fluids before being taken to the hospital, said EMS technician Lashunn Knight.

Compiled from wire reports.


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