Daschle's Speech, Fiscal Responsibility and Tax Cuts

Senate Majority Leader outlined the country's urgent domestic and military priorities and compared the pre-tax cut possibilities for domestic investment with the current post-tax cut reality's "unnecessary fiscal bind," but he did not directly call for a delay in the tax cut as a solution to this fiscal conservative's dilemma.

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More Budget Deficit Estimates Released

FY 2002 Appropriations Update Congress completed its work on the last 3 FY 2002 appropriations bills (Defense, Foreign Operations, and Labor-HHS-Education) on December 21 and the President is expected to sign all three of them and bring the appropriations season to an official completion. According to usbudget.com, the bills are being readied for the President's signature and he is expected to sign them on January 10, when the Continuing Resolution - passed on December 20 - expires. Though estimates by Democrats and Republicans of the size of the deficits differ, and will continue to grow substantially depending on the amount of additional homeland security and defense spending approved this year, both sides agree that the deficit will likely be at least $15 billion -- the Democrats are predicting it could be as large as $70 billion.

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New Priorities and Future Tax Cuts

Kennedy, Daschle and their Republican counterparts have made clear over the last 4 months that the nation is now facing new problems (on top of existing problems) and we cannot afford a debate over semantics. Instead, we must address the problems laid out by Daschle and Kennedy over the last 2 weeks and by the President in his State of the Union address next week.

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The Role of Government Performance in the FY 2003 Budget

As we have said before, if improving government performance is limited to threatening agencies with cuts, rather than working together with Congress and the Administration to truly make government more effective and useful to citizens, we can't expect much good to come from this new attempt at improving government.

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Table: FY 2002-03 Percentage Growth in Discretionary Budget Authority

Note: Many of the increases noted in the table below are due to programs specifically concerned with the President's $37.7 billion Homeland Security budget. For a more-detailed analysis of the components of the Homeland Security and other agency budgets, please see the OMB Watch website for other analyses.

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Amendment To Permanently Repeal Estate Tax

Demise of economic stimulus package brings end to efforts to make estate tax repeal permanent -- for now, at least.

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Whatever It Takes!

Wouldn't it be great if we could resolve to do whatever it takes so that everyone who works can afford shelter and food, or to clean up the nation's water and air, or make sure no child goes to bed hungry -- just as we've resolved to do whatever it takes to fight the war on terrorism?

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