GOP pushes $2.36 trillion plan through the Senate

GOP pushes $2.36 trillion plan through the Senate
Associated Press - March 12, 2004

WASHINGTON -- Republicans pushed a $2.36 trillion budget through the Senate early Friday, a package allowing lower spending and smaller tax cuts than President Bush wants and trimming record deficits faster than he proposed.

The plan largely follows the fiscal outline Bush sent lawmakers last month. Even so, its leaner approach reflects an election-year discomfort that Republicans have expressed with red ink approaching a half-trillion dollars.

The measure was approved 51-45 after Republicans fought off a mountain of Democratic amendments. Many would have trimmed tax cuts on the richest Americans and shifted the money to health care, schools, firefighters or other programs.

"Our good friends are after you," said Senate Budget Committee Chairman Don Nickles (R-Okla.), warning taxpayers about Democratic proposals he said would in effect raise taxes. "They're coming, coming after your pocketbooks."

Democrats said with this year's budget shortfall projected at $477 billion--the largest ever in dollar terms--the Republican budget called for even more tax cuts, shortchanging needed programs and doing too little to mop up red ink.

"I don't see any cutting of the deficit in half," said Sen. Kent Conrad (D-N.D.), adding that the plan omitted expected costs such as an extended U.S. stay in Iraq and easing the alternative minimum tax's growing impact on middle-income families.

Republicans also began moving a similar $2.41 trillion plan through the House Budget Committee that would surpass the Senate's tax-cut plans and cull savings from benefits that could include Medicaid and farm aid.

Congress' budget sets ceilings for revenues and expenditures. Actual tax and spending changes are made in later bills.