The Democratic majority in Congress is promising to spend more money on education and health care in 2008 while charting a course that hopefully will turn the massive federal budget into a surplus in five years.
It’s a more realistic plan than the one put forth by President Bush earlier this year.
The Democrats’ $2.9 trillion budget blueprint for the fiscal year that starts Oct. 1 would keep some of the president’s tax cuts in place, in particular those geared toward helping the middle class. But it would allow some $200 billion in tax breaks for the wealthiest Americans to expire and is expected to create a $41 billion surplus by 2012. The projected deficit for the current fiscal year is about $240 billion.
The Democratic blueprint sets guidelines for Congress to follow when writing actual tax and spending legislation later this year. It doesn’t go to the president.
Bush’s budget plan would preserve tax breaks for wealthy Americans, averaging $160,000 a year for families with incomes above $1 million, while cutting programs elsewhere in the budget, worthy programs the Democrats would like to bolster. The Democratic proposal would extend $180 billion in tax relief for the middle class, such as provisions for married couples, people with children and people facing estate taxes. And it seeks to bolster domestic programs, even while funding military operations in Iraq and Afghanistan to the tune of $145 billion.
The Democrats’ plan contains increases that average 5 percent for domestic programs such as children’s health care, education and veterans’ medical care.
Last Friday, the House wasted little time in approving a bill authorizing $39.8 billion for the Department of Homeland Security, exceeding Bush’s request by at least 6 percent. The president might not have any choice but to approve it. The bill increases funding for critical equipment that enables police and fire personnel to communicate with each other as well as increasing spending for firefighters.
The Democrats’ plan also would restore a sensible pay-as-you-go rule, requiring that legislation increasing federal programs be accompanied by tax cuts or spending decreases elsewhere to avoid adding to the deficit.
Republicans abandoned the rule in 2001 in order to pass Bush’s tax cuts.
It will be several months before we know what’s in the final budget. But the Democrats’ proposal offers a reasonable alternative to Bush’s agenda.
