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Women's Rights
What's New? - Archive
WomenMatter will continuously post updates on all this and other issues as we monitor the continuing philosophical and practical debates nationwide.
Please check back often for updates. Past updates are available for reference on the Women's Rights Archives page.
Since Women's Rights is in many ways an umbrella issue, WomenMatter will highlight related updates from other Life Issue areas here:
Fuss Budget: Bush’s Spending Plan Causes a Commotion
Each year, in the first week of February, the president of the United States submits a budget proposal to Congress.
Ultimately, our congressional representatives determine the budget, but they often use the president’s proposal as a starting point.
The president’s proposal restates his (and someday her) priorities. By funding some programs and cutting others, the president sets a course for the nation.
Bush priorities
Everyone agrees that the Bush administration’s priorities are defense and homeland security. In his budget plan, Bush increases military spending by 7%, to a total of $401.7 billion. Homeland security spending is increased by 9.7%, to $30.5 billion.
However, continued spending in Iraq and Afghanistan is not included in the proposal, though we are likely to spend as much as $50 billion in these countries. Why are these costs omitted from the budget?
Democrats say that Republicans are using smoke and mirrors to hide the depth of the deficit and the true cost of the missions in Iraq and Afghanistan. With these expenses omitted, Democrats feel that the president’s budget is inaccurate.
In their defense, Republicans claim that they do not know the future costs of Iraq and Afghanistan and feel it is inappropriate to include a rough estimate in the budget. Bush plans on requesting a separate supplemental after the elections.
Deficit Blues
Bush has cut a variety of programs in an attempt to decrease the deficit by half in the next five years.
65 programs are cut altogether and 63 are scaled back for a total savings of $4.9 billion. This seems like a considerable amount until compared with the total deficit, which The White House estimates will reach $521 billion in 2004.
Some of Bush’s cuts contradict the priorities defined by his State of the Union address. For example, the testing-based education initiative No Child Left Behind will get more funding, while other education programs will be sliced, like $34 million for secondary school counselors, $30 million for school programs that combat alcoholism, and $18 million for a national writing program. The Bush administration claims to be cutting programs that have not proven their effectiveness.
Democrats disagree. They point out that the pentagon gets extra dollars for homeland security, but federal grants to fire departments, police, and emergency workers will be cut by $900 million.
Tax cuts
There is major disagreement among lawmakers as to whether extending current tax cuts will help pay off the deficit or just add to it.
Democrats feel that draining the federal reserve of $1.24 trillion over the next ten years exacerbates the debt situation. Further, they argue that the majority of the tax cuts aid the wealthy, while middle and low-income earners are left behind and thus more likely to use government services.
Republicans feel that tax cuts are a highly effective way to spur economic growth. Tax breaks help businesses to remain competitive in the global market; they therefore encourage direct investment in American companies. The resulting growth increases revenue for the government, revenue that can be used to pay off the national debt.
Saving America
Many Americans are mired in debt and have very little savings.
Bush’s budget proposal increases tax-free savings options, a plan criticized by Democrats and hailed by Republicans.
If Bush’s proposal is adopted by Congress, any American (regardless of income) will be able to contribute up to $5,000 a year to a Lifetime Savings Account. Any interest earned would be tax-free, as would withdrawals, and there would be no penalty for withdrawals. The budget plan also establishes a similar Retirement Savings Account, which would have no contribution limit (though you can’t contribute more than you earn) and earnings would grow tax-free.
Retirement Savings Accounts would replace IRAs, which is where the criticism begins. Opponents feel that Retirement Savings Accounts will be yet another tax shelter for the wealthy. Since low and middle-income Americans do not contribute as much as they can to existing retirement accounts, the only reason to remove contribution limits is to aid high-earners.
Democrats argue that because wealthy Americans could shelter thousands or even millions in Retirement Savings Accounts, the Federal Treasury will be further depleted, aggravating the budget crisis. Republicans assert that Americans should be allowed more freedom to save and plan for their retirement and healthcare.
President Bush’s budget proposal is 195 pages and comes to a total of $2.4 trillion. It is a complex document, and not all of it is represented here. But WomenMatter will follow Congress as it begins to review the budget and make changes to the proposal. Check back for more discussion about how your tax dollars will be spent.
Discuss this topic with other WomenMatter readers in one of our online forums, explore the Nine Life Issues, and contact your representatives and let them know what you think.
Article Posted on: 2/6/2004
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