Al Hubbard, the director of President Bush's National Economic Council, said in an interview that the president does not support a key measure in the tax reforms submitted by the Advisory Panel on Tax Reform. Specifically, the president has rejected a reform that would tax workers on health insurance benefits valued at $11,500 or more for a family; instead advocating for expanding untaxed health savings accounts and increased deductibility of medical expenses. Expanding untaxed health savings accounts would add to the deficit to the tune of $6 billion annually.

The release of the President's budget is less than a month away, and Treasury Secretary John Snow has made it clear the budget will "call for sacrifices, no doubt about it." Like last year's "tough budget," this year's slicing and dicing is an attempt by the administration both to appear tough on spending, as well as help them pare the down the deficit -- a whopping $318 billion last year -- even further.

Last April Congress called for an increase in the debt limit -- the national debt is expected to hit $8,184 billion in mid-February -- however they have yet to act. Lawmakers are expected to take up the issue in February after voting on final tax and budget reconciliation bills, marking the fourth time during President Bush's presidency the debt limit has needed to be raised.