2006 Tax Reconciliation Conference Remains Stalled

More than four months after it was initially approved, the FY 2006 tax reconciliation bill remains in seemingly deadlocked negotiations. With conferees continuing to postpone a compromise package due to uncertainty over its final approval in both chambers, the pending approval of the FY 2007 budget resolution - and an end to the tax bill's filibuster-proof status - looms large.

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House Budget Committee Approves Budget Resolution

Last Wednesday, the House Budget Committee approved a stark budget resolution that would increase deficits by $254 billion over the next five years, setting the stage for contentious debate this week on the House floor. The resolution sets discretionary spending at meager levels, includes a large increase in defense spending, and assumes continuation of some tax cuts. Its final approval will be the first major test of the new House GOP leadership team, especially of new House Majority Leader John Boehner (R-OH).

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Income Inequality Has Intensified Under Bush

Though the Bush administration continues to laud the strength of the economy and the success of its economic and tax policies, a large percentage of Americans are continuing to struggle to make ends meet as income growth has become increasingly concentrated at the top of the income scale. Income inequality, in fact, is at an all-time high, illustrating that current tax, budget, and wage and employment policies are all not working in favor of average American families.

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House Passes Yet Another "Emergency" War Funding Bill

Before departing for a week-long St. Patrick's Day recess, Congress succeeded in further mangling the fiscal state of the nation. The House passed a costly emergency supplemental bill, while the Senate approved a misguided budget resolution. At the same time, both chambers approved an increase to the nation's debt limit to pay for their fiscal decisions. The $92 billion emergency supplemental measure passed by the House will significantly increase current deficits and do so by circumventing standard budget procedures.

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Senate Approves Disappointing Budget Resolution

Last week before leaving town for another weeklong recess, the Senate approved its Fiscal year 2007 budget resolution. The resolution is a significant departure from President Bush's proposed budget submitted earlier this year, dropping the president's Medicare cuts, not extending tax cuts, and adding over $16 billion in discretionary spending above the president's request. Despite these changes that make it more election-friendly for Senate incumbents, the budget continues to fall short of the sound budget policy desperately needed to stem the growth of deficits.

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Honest Debate Is Needed Around Vote to Increase Debt Limit

On March 16 the Senate voted 52-48 to increase the nation's statutory debt limit once again. The limit now sits at almost $9 trillion. The vote to increase the debt limit was necessary in order to avoid a government default, yet Senate Republican leaders pushed hard for this vote to take place without proper debate and without giving Senators a chance to offer amendments, some of which could potentially help to slow the rapid run-up of debt in years to come.

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White House Continues False Rhetoric on Impact of Tax Cuts

Attempting to justify the Congressional GOP's push to extend and make permanent President Bush's first term tax cuts, many Republican legislators and pundits, including the vice president, have recently claimed tax cuts pay for themselves by spurring economic growth. While this argument bolsters their call for tax cut permanence, the evidence shows the claim is more fiction than hard fact.

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