Senate demands offset of federal tax cuts
By MATTHEW WATSON
White House efforts to make permanent President Bush’s huge tax cuts for the wealthy received a serious setback in the U.S. Senate when budget procedures were adopted in March requiring future tax cuts, including an extension of the 2001 tax cuts, be paid for with offsets and not simply added to the massive federal deficit.
The offset amendment, offered by Sen. Russell Feingold (D-WI), passed narrowly, 51-48, with Republican Sens. John McCain, Susan Collins, Olympia Snowe and Lincoln Chafee joining the Democrats in voting for it.
The Senate rejected a number of other amendments to increase domestic funding, including amendments to increase state and local grants for public health and homeland security. The Senate approved the budget 51-45.
In another key budget vote, Sen. Max Baucus (D-MT) succeeded in stripping $21.6 billion in cuts to mandatory spending programs, including Medicaid and the Earned Income Tax Credit (EITC), from the Senate budget resolution. By a vote of 53-43, the Senate restored $11 billion in cuts to Medicaid and $3 billion in cuts to EITC.
The House Budget Committee began debating its version of the 2004-05 federal budget resolution, which provides a roadmap for congressional spending and tax policies. Proposed by House Republican leaders, it is very similar to Bush’s budget — delivering $138 billion in tax breaks for the rich, cutting funds for services to working families, and adding $300 billion to the current five-year deficit federal deficits. It also lacks a plan to create new jobs, invest in America’s infrastructure, or provide funding to help states and localities overcome their large budget gaps.
Opponents worry enlarging the federal budget deficit will drag down future economic growth and threaten Social Security by diverting more than $2.5 trillion over 10 years from its trust fund.
Furthermore, the plan cuts $6 billion (2 percent) from domestic services such as transportation, clean drinking water and law enforcement, and it cuts billions more from grant programs for states and localities.
PEF calls for federal budget discipline
PEF is urging House members to pass a budget
that:
-
Does not place caps beyond the next year or two on discretionary spending at levels that will force Congress to significantly cut domestic discretionary programs;
-
Restores fiscal discipline to the budget process by requiring both tax cuts and entitlement spending increases to be offset with tax increases or spending cuts;
-
Avoids Medicaid program cuts that can undermine health care for low-income elderly individuals, people with disabilities, parents and children.
Communicator Home June
04
Inside This Issue
Features
Contract Update: State stalls...
Take
agencies out of the shadows
Law could reduce contracting-out
Keep pressure to save Fulton CF
Heroes plant feet in NH
Departments
President's Message
Member's Mailbag
Nurses' Station
Retirees In Action
Members' Highlights
Back Cover Ad
PEF Member Benefits & Travel
Union Matters
Vote: PEF’s privatization buster
Senate demands
offset of...
Stopping out-of-title work in
its...
Vote: privatization buster
for ’04
Step in the right direction at SED
Fed. law changes bad for union
Nurses' fast response saves life
$ for prison health care workers
Law
gives benefit to parole...
PI
scientists’ write to the top
Questions on this site?
Email the
comwebmaster
Register here on the PEF
Member Network.
Click
Here email notice when next issue
is online
Site Map
What's New
Search