President George W. Bush presented his $2.4 trillion dollar
budget proposal to Congress Monday, focusing spending on winning
the war on terrorism, building the infrastructure of the Department
of Homeland Security and initiating policies for economic
recovery.
According to Bush, his proposed budget advances the nation’s top
three priorities.
During his speech, the president praised the military success in
the war on terror thus far while also calling for sustained
action.
“This nation has committed itself to the long war against
terror,” Bush said in his address. “And we will see the war to its
inevitable conclusion: the destruction of the terrorists.”
Along with the seven percent military spending increase,
homeland security will also receive an increase of 10 percent in
2005. The substantial increase in funds will be used most
specifically by the FBI for heightened security alerts against
terrorist attacks.
These increases, along with Bush’s economic recovery plan to
make the tax cuts of 2003 permanent, leave the president in a bind
with both the Democrats and Republicans in Congress. Many fiscal
conservatives think Bush’s plan for spending is irresponsible
during a time of large deficits.
“The president’s budget takes some good steps toward reforming
the broken budget process and restraining spending, but it doesn’t
nearly go far enough,” U.S. Rep. Paul Ryan, R ?WI, said in a press
release. Ryan is currently working on legislation to reform
government spending and create more accountability.
On the other hand, democrats like Ted Kennedy strongly oppose
the permanent tax cuts when spending for governmental programs is
being simultaneously eliminated according to the New York
Times.
While President Bush stressed the importance of economic reform
in his proposal, proponents say that his actions are unnecessary
for current economic conditions. UW professor in the La Follette
School of Public Affairs, Andrew Reschovsky, argued that Bush’s tax
cuts are detrimental to the economy in the long run.
“During this time when the country is successfully getting out
of a recession and the economy is looking increasingly prosperous,
permanent tax cuts are only going to break the growth and put us
into a tailspin when it comes to inflation and increasing interest
rates,” Reschovsky said.
Reschovsky also said if the Bush administration was serious
about increasing economic prosperity they would consider tax breaks
to the low-income bracket in order to spur increased spending and
saving.
While the 2004 budget was met with intense scrutiny in Congress,
it is said the current proposal will be met with just as much — if
not more. In an election year, Republicans are apprehensive of the
idea that Bush has cut spending on many domestic programs, causing
support for the president to lag during the election this fall.
Of the 13 cabinet-level agencies, seven of them will experience
decreases in funds if the proposal goes through the legislature as
is. The agencies with the largest reduction in funds are the
Agriculture and Environmental Protection Agencies.
With Bush’s emphasis on military and defense spending as well as
his permanent tax cut plan, he has little room for other spending
he had previously supported such as an overhaul of Medicaid.