President Bush sent Congress a $2.23 trillion budget Monday, with emphasis on strengthening the economy, winning the war on terrorism and securing the homeland. The budget projects a deficit of about $300 billion for the 2004 fiscal year and does not address the costs of a possible war with Iraq.
To strengthen the economy, Bush referred to his job and economic growth plan and proposed speeding up tax cuts approved by Congress. He also proposed eliminating the federal tax on stock dividends.
\Government cannot manage or control the economy. But government can remove the barriers blocking stronger economic growth,"" Bush said in his budget address.
As for terrorism and homeland security, the budget allots $36 million for the creation of the Department of Homeland Security, which will encompass 22 existing agencies. The Department of Defense receives about $380 billion, an increase of about $15 billion, or 4 percent. This figure does not include additional money the administration would ask Congress, should the United States go to war against Iraq.
""We don't sit around and say we might go to war so let's budget for it, because then what if you don't go to war, do you give it back to somebody?"" said Army Lt. Col. Gary Keck, Department of Defense spokesperson.
If the United States goes to war, the money budgeted for the Department of Defense would be used until it ran out, and then the president would go to Congress and ask for supplemental funding, Keck said.
Excluding the Department of Defense spending, the budget provides $35 billion for homeland security, including $890 million for vaccines against smallpox, anthrax and botulinum toxin. Under the proposed budget, Medicare is increased by $400 billion over 10 years but is reformed to create a prescription drug plan for seniors.
""We must prepare for the future costs of Social Security and Medicare. My budget takes the first steps toward modernizing Medicare and includes prescription drug coverage,"" Bush said.
But some Congressional Democrats believe the budget puts Social Security and Medicare at risk.
""Congress and the Administration should be working to balance the budget, without using Social Security surpluses, instead of spending every penny of them and then some on new programs and tax cuts,"" Sen. Russ Feingold, D-Wis., said in a statement.
""This is the most fiscally irresponsible budget ever proposed,"" Rep. Tammy Baldwin, D-Madison, said, ""It completely spends all of the Social Security and Medicare trust fund, jeopardizing the retirement security of millions of Americans.""
Baldwin said the budget introduces an additional $1.5 trillion in tax cuts benefiting the wealthiest of Americans. While Bush included $12.7 billion for Pell Grants for low-income students, he froze the maximum award per student at $4000. This does not offset the rising costs of a college education, according to Baldwin.
