Bush’s Budget Philosophy: Cut Spending and Taxes

Considering your personal finances, what do you do when you have a lot of debt and expenses that are exceeding your income? What if you have a costly, ongoing financial emergency?

These are the conditions of our federal finances. The fiscal year 2007 budget resolution is one attempt to right them. President Bush has proposed to cut various domestic programs and make permanent tax cuts in hopes of decreasing the deficit and stimulating the economy.

Why cut?

The deep budget deficit is the President’s stated primary reason for cutting back on domestic programs. Cutting back on government while leaving more responsibility for individuals is a major philosophy of the administration and the Republican party.

During his 2004 campaign, Bush promised to cut the deficit in half by 2009. The administration is using the initial 2004 fiscal deficit projection of $521 billion as the figure to cut in half, even though the deficit actually stood at $412 billion by the end of FY 2004. This means that the Bush administration is trying to reach $260 billion by 2009, instead of $206 billion (and $54 billion is hardly splitting hairs).

What’s getting cut

Roughly 8 percent of the budget is up for review by Congress each year. This spending, known as discretionary spending, is the primary site of the cutbacks, although entitlement programs like Medicare and Medicaid could be cut as well. The Bush administration gave lawmakers a list of programs they’d like to see cut, many of which are in education, including Even Start, the only federal reading program to involve both parents and children from birth to age eight.

Also on the list is the National Writing Project, a program that trains teachers to help their students become successful writers and learners. Also on the list is The Women’s Educational Equity Program, which increases educational opportunities and outcomes for all students by focusing on gender equity and drawing on the strengths of gender, race, ethnicity, disability, and income.

School dropout prevention programs, alcohol abuse reduction programs, civics education, and fine art programs may all fall to the cutbacks, depending on what Congress decides.

Bush says that these programs aren’t cost effective and that they should produce measurable results in order to keep getting federal funding. However, in years past, most programs on the hit list were saved by sponsoring legislators. Nevertheless, if you support programs that are up to be cut, contact your representatives and let them know.

Bush’s budget priorities

In addition to increased spending for the military, the White House budget plan also calls for Congress to make permanent the 2001 and 2003 tax cuts at a cost of $1.1 trillion over the next ten years.

President Bush believes in tax cuts for everyone, including the wealthy. His view is that wealthy people will take their extra money and create new businesses with it. He also believes that government should take less responsibility for people’s health and education and that individuals and private businesses should provide more of those services.

But Democrats doubt that general economic growth necessarily trickles down to low-income Americans. They argue that since the tax cuts are paired with funding cuts for programs that serve the neediest Americans, the plan takes from the poor and gives to the rich.

This unusual difference of opinion within Congress on how to spend our tax dollars reflects the seriousness of the nation’s financial situation and highlights the philosophical differences in the United States both over what government is supposed to do and what creates jobs and job security.

In 2001, Congress passed tax cuts before the war in Iraq began. Now there is less money coming into the government while the bills for the Iraq war keep growing. We are borrowing through bond sales to meet our goals, but it is now clear that something has to give.

What do you think?

What’s your philosophy on the federal budget? Which approach most closely matches your beliefs and values? Are the tax cuts aiding you in your daily struggle? What needs more funding and what should be cut?

Each party has a different approach to the different problems affecting women: education, healthcare, childcare, and jobs, just to name a few. WomenMatter will continue to spotlight how party philosophies become legislation.

Your input matters

Your representatives in Congress DO care what you think. Especially now -- 2006 is an election year and many representatives will be looking to reconnect with their constituents. Let your congressmen and women know what you think! Give your senators a piece of your mind! To find your reps, click here.

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Article Posted on: 2/13/2006