The House and Senate passed separate versions of the fiscal year 2006 (FY06) budget resolution last week that would allow for additional tax cuts, mostly targeting wealthy families, while cutting back on spending for programs that serve middle- and low-income America. A split within the GOP ranks may spell trouble for reconciling the two budget resolutions, and, as with the current year, would mean Congress would operate without a budget blueprint.

This week, the House and Senate budget committees are scheduled to mark up their budget resolutions, and spending caps proposed for the next five years, would hurt many states. President Bush sees these budget spending caps as key to reducing the deficit and overall spending by the federal government — but they will do little to reduce the deficit.

In a dramatic shift in how the administration has approached overhauling Social Security, Treasury Secretary John Snow stated March 2 the administration is open to considering proposals that would create government-subsidized personal savings accounts outside the existing Social Security system or through means other than a diversion of funds from an individuals’ payroll tax. This announcement comes amid speculation that the president’s plan for Social Security reform may be less attainable than he and GOP congressional leaders would like to admit.