Caps

The Y2006 Budget proposal by the Bush administration is out:

CENTER ON BUDGET AND POLICY PRIORITIES
Revised February 22, 2005
WHERE WOULD THE CUTS BE MADE UNDER THE PRESIDENT'S BUDGET?
An Analysis of Reductions in Education, Human Services,Environment, and Community Development Programs
By Sharon Parrott, Jim Horney, Isaac Shapiro, Ruth Carlitz, Bradley Hardy, and David Kamin


It is the first time since 1989 that an Administration’s budget has not provided information about the proposed levels of funding for individual discretionary programs for years beyond the coming year.

the cuts in domestic discretionary spending in years after 2006 are an integral part of the Administration’s plan "to cut the deficit in half by 2009." More importantly, the Administration is proposing that the levels of overall discretionary funding (including domestic discretionary, defense, and homeland security funding) assumed in the President’s budget for 2007 through 2010 should be enforced by statutory caps it wants enacted this year. Enactment of such caps would lock in substantial cuts in domestic discretionary spending through 2010 even though the Administration was unwilling to detail and defend those cuts in the President’s budget.

The Cuts proposed are not small, but $214 billion over five years. They are also 'Back-loaded' with little taken out the first year. The Caps Proposal also are not like the Caps used in the 1990s, but call for automatic funding cutbacks unless specifically overridden by law--requiring Bush sign the legislation or Congress override the Veto. Bush Supporters in Congress could easily forestall the two-thirds majority for Veto override. The Bush agenda would emasculate the Congress, but do little to reduce the Deficit; nothing in the Bush passed or proposed legislation costs so little.

The Author would desire for Caps on Entitlements and Defense Spending (see previous Posts). A properly instituted 'One-Size' Social Security benefit could eliminate the shortfall in the Social Security Fund. The Defense Budget is touchable, and the quicker the better. The Proscription Drug benefit will only pay Drug companies exorbitant Profits, allowing them to continue Price increases; doing nothing for Seniors or Others who must pay for overpriced Drugs.

The Author also believes another Cap should be modified. This is the Cap on FICA taxation. Some call for elimination of this Cap, saying it would solve the SS Fund shortfall. It does not even have to be this drastic; it only has to increase by the same percentage as given to Social Security recipients as COLA indexing. lgl