It is no secret that, after contributing to the deficit by huge tax cuts, a primary focus of this Administration now is decreasing the deficit by cutting spending, while continuing to reduce revenue by way of tax cuts. This will require massive cuts and eliminations of programs and services. It augurs a historically significant rollback in federal spending that if unchecked will fulfill conservative promises to reduce government to the barest of minimums.

There is considerable confusion about the debate on Internet taxes. One issue is whether items sold over the Internet should be taxed. Another issue is whether there should be a tax on access to the Internet; similar to the tax we pay for use of telephones. This second issue – charges a user pays to an Internet Service Provider to connect to the Internet, as well as taxes that would discriminatorily apply only to Internet technology and use – is now being debated in Congress.

Release of two new pieces of economic data showed that the economy, while growing, is still below expectations.

OMB Watch has released a new report providing an analysis of the president’s budget that describes the fiscal chaos created by the president’s proposals. The report is entitled "2005 Federal Budget Continues Fiscal Decline."