[Vision2020] 06-03-04 NY Times OP-ED: Fiscal Shenanigans [Bush: 1.5 Billion Cut to Veterans]
Art Deco aka W. Fox
deco@moscow.com
Thu, 3 Jun 2004 07:23:35 -0700
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June 3, 2004
Fiscal Shenanigans
resident Bush appears to be planning to run for re-election as a tax
cutter without discussing what federal programs will be sacrificed to make up
for the lost revenue. That can't be allowed to happen. Voters have the right to
see the whole picture, including the downside. Chances are they won't like the
view.
While Mr. Bush has been out crowing about spending increases in some
popular programs, his Office of Management and Budget was instructing federal
departments to prepare to pare them down. In a May 19 memo that was first
reported in The Washington Post, departments were told to trim domestic
discretionary spending in 2006, the first complete fiscal year after the
November election. And the administration recently submitted legislation to
impose caps that would result in further reductions in every year after that
through 2009.
According to estimates by the nonpartisan Center on Budget and Policy
Priorities, the Office of Management and Budget guidelines translate into
inflation-adjusted reductions in 2006 alone of about $925 million for Head Start
and childhood education. That would come at a time when schools are already
struggling to meet the demands of Mr. Bush's No Child Left Behind initiative
without adequate resources. College financial aid, mainly Pell Grants, would
take a $550 million hit - at a time when lower-income students are dropping out
of school because they cannot meet rapidly rising costs.
The same projections show that veterans' medical care would be cut by $1.5
billion (after a planned $380 million cut in 2005). All told, under the proposed
cuts, total funds for these and other affected programs - like environmental
protection, housing programs and nutrition aid for poor pregnant women and
children - would be $21 billion less in 2006 than today. By 2009, domestic
discretionary spending, not counting homeland security, would be $45 billion
below its current level and would be a smaller portion of the economy than it
has been at any time since 1963.
The budget-cutting exercise is undoubtedly inspired, at least in part, by
complaints from conservatives about the enormous deficits being created by the
White House's fiscal recklessness. They like the tax cuts, but want to match
them with spending reductions. They have been demanding that the president start
paring the budget, or at least demonstrate that he will be ready to do so after
November.
It's hard to imagine any realistic approach that would have the nation
achieve fiscal responsibility with the tax cuts in place. First of all, even all
of the proposed cuts in the memo would barely begin to make a dent in the annual
deficits, which are likely to range from $300 billion to $400 billion for the
rest of the decade. Second, although the fate of specific programs has not been
decided, there is no way the administration can take a multibillion-dollar whack
out of the relatively small budget for domestic discretionary programs - a mere
one-sixth of federal spending - without hurting services that are both popular
and desperately needed.
Some of the staunchest tax-cut supporters in Congress are perfectly aware
that the math doesn't work. They hope the accumulating pressure of the deficits
will eventually force the federal government to go further and cut entitlement
programs like Social Security, Medicaid and Medicare. Very few of them, however,
are prepared to run for re-election on that plan.
Currently, tax cuts since 2001 account for 17 times as much of the swing
from surplus to deficit as do increases in domestic discretionary spending. No
one who refuses to face up to the root cause of our fiscal problems should be
permitted to seek public office without saying where the money will come from.
Candidates who insist on keeping the Bush tax cuts - whether they're running for
Congress or the presidency itself - have to show us the math.
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<H5>June 3, 2004</H5><NYT_HEADLINE version=3D"1.0" type=3D" ">
<H2>Fiscal Shenanigans</H2></NYT_HEADLINE><NYT_BYLINE =
version=3D"1.0"=20
type=3D" "></NYT_BYLINE>
<TABLE cellSpacing=3D0 cellPadding=3D0 align=3Dright border=3D0>
<TBODY>
<TR>
<TD></TD></TR></TBODY></TABLE><NYT_TEXT>
<P><ALT-CODE idsrc=3D"nyt-per-pol" value=3D"Bush, George W" /><IMG =
height=3D33=20
alt=3DP src=3D"http://graphics7.nytimes.com/images/dropcap/p.gif" =
width=3D30=20
align=3Dleft border=3D0>resident Bush appears to be planning to =
run for=20
re-election as a tax cutter without discussing what federal =
programs will=20
be sacrificed to make up for the lost revenue. That can't be =
allowed to=20
happen. Voters have the right to see the whole picture, including =
the=20
downside. Chances are they won't like the view. </P>
<P>While Mr. Bush has been out crowing about spending increases in =
some=20
popular programs, his Office of Management and Budget was =
instructing=20
federal departments to prepare to pare them down. In a May 19 memo =
that=20
was first reported in The Washington Post, departments were told =
to trim=20
domestic discretionary spending in 2006, the first complete fiscal =
year=20
after the November election. And the administration recently =
submitted=20
legislation to impose caps that would result in further reductions =
in=20
every year after that through 2009.</P>
<P>According to estimates by the nonpartisan Center on Budget and =
Policy=20
Priorities, the Office of Management and Budget guidelines =
translate into=20
inflation-adjusted reductions in 2006 alone of about $925 million =
for Head=20
Start and childhood education. That would come at a time when =
schools are=20
already struggling to meet the demands of Mr. Bush's No Child Left =
Behind=20
initiative without adequate resources. College financial aid, =
mainly Pell=20
Grants, would take a $550 million hit =97 at a time when =
lower-income=20
students are dropping out of school because they cannot meet =
rapidly=20
rising costs.</P>
<P>The same projections show that veterans' medical care would be =
cut by=20
$1.5 billion (after a planned $380 million cut in 2005). All told, =
under=20
the proposed cuts, total funds for these and other affected =
programs =97=20
like environmental protection, housing programs and nutrition aid =
for poor=20
pregnant women and children =97 would be $21 billion less in 2006 =
than=20
today. By 2009, domestic discretionary spending, not counting =
homeland=20
security, would be $45 billion below its current level and would =
be a=20
smaller portion of the economy than it has been at any time since=20
1963.</P>
<P>The budget-cutting exercise is undoubtedly inspired, at least =
in part,=20
by complaints from conservatives about the enormous deficits being =
created=20
by the White House's fiscal recklessness. They like the tax cuts, =
but want=20
to match them with spending reductions. They have been demanding =
that the=20
president start paring the budget, or at least demonstrate that he =
will be=20
ready to do so after November.</P>
<P>It's hard to imagine any realistic approach that would have the =
nation=20
achieve fiscal responsibility with the tax cuts in place. First of =
all,=20
even all of the proposed cuts in the memo would barely begin to =
make a=20
dent in the annual deficits, which are likely to range from $300 =
billion=20
to $400 billion for the rest of the decade. Second, although the =
fate of=20
specific programs has not been decided, there is no way the =
administration=20
can take a multibillion-dollar whack out of the relatively small =
budget=20
for domestic discretionary programs =97 a mere one-sixth of =
federal spending=20
=97 without hurting services that are both popular and desperately =
needed.</P>
<P>Some of the staunchest tax-cut supporters in Congress are =
perfectly=20
aware that the math doesn't work. They hope the accumulating =
pressure of=20
the deficits will eventually force the federal government to go =
further=20
and cut entitlement programs like Social Security, Medicaid and =
Medicare.=20
Very few of them, however, are prepared to run for re-election on =
that=20
plan.</P>
<P>Currently, tax cuts since 2001 account for 17 times as much of =
the=20
swing from surplus to deficit as do increases in domestic =
discretionary=20
spending. No one who refuses to face up to the root cause of our =
fiscal=20
problems should be permitted to seek public office without saying =
where=20
the money will come from. Candidates who insist on keeping the =
Bush tax=20
cuts =97 whether they're running for Congress or the presidency =
itself =97=20
have to show us the math.</P></NYT_TEXT><BR>
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