Thursday, April 28, 2005
Bush League Increases Deficits
I'm sure the financial markets and the various central banks are going to love this:|
The budget also makes way for $106 billion in tax cuts over five years, about what Bush had requested. Of that, $70 billion would be shielded from a Senate filibuster, enough to ensure that all expiring tax cuts can be extended, including the 2003 cuts to capital gains and dividend tax rates.More tax cuts - bigger deficits - promised cuts to highly popular programs that almost certainly won't happen ... reality sure took a pounding on this one. On the other hand, they really should have waited until Friday afternoon for this one so Reality wouldn't be able to hit the markets for a day or so.
The cost of those tax-cut extensions would more than nullify the savings from the spending cuts, allowing Democrats to charge that the budget agreement actually leaves the federal deficit worse than it would be without a deal.
"If you like debt, you've got to love this budget, because it builds a wall of debt," said Kent Conrad (N.D.), the ranking Democrat on the Senate Budget Committee.
(Source: Washington Post Congress Reaches Budget Deal April 28, 2005 [Emphasis added])