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Discusses the concept of compassionate conservatism as defined by the United States Republican Party. Attempt to convince voters that Republicans are concerned about social problems and have ways to address them; Whether US citizens will believe the claims of the party; Use of the concept by US presidential candidate George W. Bush; Outlook for the Republican Party.

Examines the assertions of Republican United States Senators that President Bill Clinton's budget is an attempt to expand the federal government. Relation of the amount spent to the rate of economic growth; Overview of federal spending during the fiscal year of 1998; Comments of economists; Conclusions.

Explains why the United States will not likely experience a major tax cut from the federal government in 1999. The federal budget surplus; Political threats to Republicans should they cut taxes for the wealthy; Divisions in the Republican Party over tax-cut plans; Benefits of marginal tax cuts; Views of Federal Reserve Board Chairman Allan Greenspan; Current economic condition of the US; Possible reduction in the marriage-tax penalty.

Indicates that Republicans are the biggest domestic government spenders in the United States according to a study conducted by C. Eugene Steuerle and Gordon Mermin of the Urban Institute, a Washington think tank. Statistical information on spending for Republicans and Democrats; Request made by President, Bill Clinton, to Congress.

Reports on the efforts of Republicans in the United States Congress to cut taxes because of the estimated $75 billion surplus for fiscal year 1998. Where the surplus is from; The lack of consensus on where to cut taxes; Obstacles to tax cuts; The impact on Social Security; The likelihood of another government shut down like there was in 1996.

Focuses on the tax system and the modifications passed by the Republicans as part of the Contract with America. Tax experts' opinions; Author's comments.