Republican Concerns About Deficits Grow
By EDMUND L. ANDREWS
Published: January 30, 2004
WASHINGTON, Jan. 29 — A senior House Republican warned on Thursday that President Bush was on a collision course with Congress over his plans to reduce the deficit by almost freezing the growth of discretionary programs aside from military and domestic security items.
A briefing paper distributed to Republican lawmakers by the chairman of the House Appropriations Committee, Representative C. W. Bill Young of Florida, estimated that a complete freeze on the discretionary programs — excluding military and domestic security proposals — would save only $3 billion next year.
By contrast, White House budget officials are trying to reduce a budget deficit that they say could reach $500 billion or more this year.
To cut that deficit by half in the next five years while continuing to increase military and domestic security spending, President Bush is expected to call for limiting the growth of all nonmilitary programs from housing vouchers to education to only 1 percent.
Mr. Young, in a paper prepared for Republican lawmakers attending a two-day retreat in Philadelphia, noted that the discretionary domestic programs Mr. Bush seeks to restrain account for only 17 percent of the total federal budget.
Two-thirds of the $2.3 trillion federal budget is consumed by mandatory spending — entitlement programs like Social Security, Medicare and Medicaid, as well as interest payments on the rising federal debt. Military and domestic security budgets consume another big chunk, which Mr. Bush wants to raise by 7 percent, to $401 billion. That leaves only about $445 billion for all other domestic programs that Mr. Bush would limit to increases of 1 percent a year.
"Solely targeting nondefense discretionary spending will not have a significant impact on the deficit," according to Mr. Young's memorandum
Posted by P6 at January 30, 2004 08:20 AM
Trackback URL: http://www.niggerati.net/mt/mt-tb.cgi/186
Comments
And the WH lied to Congressional GOP in order to pass the Medicare legislation. The bill was sold as costing under $400 billion. Now...
NYT: WASHINGTON, Jan. 29 � The Bush administration said on Thursday that the new Medicare law offering prescription drug benefits and private health plans to the elderly would cost at least $530 billion over 10 years, or one-third more than the price tag used when Congress passed the legislation two months ago.
Conservative Republicans said the new estimate confirmed their worst fears, while Democrats said it vindicated their view that the law gave far too much money to drug manufacturers and insurance companies. The bill passed narrowly in the House after Republican leaders gave assurances that the cost would not exceed $400 billionThis is not really true. It is true that if a market-based health care system existed, or could be devised, it would be more efficient than the alternatives. The problem is, this bill does not provide market incentives to cut costs, except by withholding services from captive customers. What it does do is increase Q while guaranteeing p. What market priciple is upheld by that?The Bush administration did not explain how it arrived at its cost estimate, but health economists and budget analysts suggested two factors. The administration predicts that the new law will produce a sharp increase in the number of Medicare beneficiaries enrolled in health maintenance organizations and other private health plans. In addition, the law significantly increases Medicare payments to private health plans.
"For the foreseeable future, the private plans are more expensive than the traditional fee-for-service Medicare program," said Robert D. Reischauer, president of the Urban Institute and vice chairman of a federal commission that advises Congress on Medicare.
[...]
Republicans say the private plans will enhance competition and efficiency in the Medicare market, saving money in the long run.
Posted by James R MacLean at January 30, 2004 02:15 PM
Great news, what we all knew would happen. Bush and Rice and Cheney get their hands on something it falls apart. Who the hell is his chief financial consultant/ treasury secretary since the ran O'neill off?
Posted by Mr.Murder at February 2, 2004 07:53 PMSnow. John W. Snow.
Snow was Chairman and Chief Executive Officer of CSX Corporation [,..] He led [CSX] to refocus on its core railroad business, dramatically reduce injuries and train accidents, and improve its financial performance.
Snow�s previous public service includes having served at the Department of Transportation as Administrator of the National Highway Traffic Safety Administration, Deputy Undersecretary, Assistant Secretary for the Governmental Affairs, and Deputy Assistant Secretary for Policy, Plans and International Affairs.(Emphasis mine; bold link is to the BRT's policy agenda press release.) A cursory check of publications at the same website reveals that the BRT is committed to heading off all forms of government regulation for market externalities such as environmental pollution. IOW, while O'Neill purported to have economic credentials, Snow cannot be rebuked for such sins. He is emphatically a lobbyist for business interests.Snow�s knowledge of international industry stems from his tenure as Chairman of the Business Roundtable, the foremost business policy group comprised of 250 chief executive officers of the nation's largest companies. During his tenure as Chairman from 1994 through 1996, he played a major role in supporting passage of the North American Free Trade Agreement.
Posted by James R MacLean at February 3, 2004 03:45 PM