Status of FY 2004 Budget Resolution -- Still Time to Stop Huge Tax Cuts, Spending Cuts

As discussed in newspapers across the country, support for preserving the President's costly $726 billion tax cut package (misnamed the "Growth Package") is weakening. On March 25, the Senate voted to shrink the $726 billion package down to $350 billion. (In an earlier vote, the House passed the full $726 billion tax cut - and more than $260 billion in cuts to veterans' assistance, Medicaid, Medicare, food stamps and other programs - in a very close vote, 215-212.)

As discussed in newspapers across the country, support for preserving the President's costly $726 billion tax cut package (misnamed the "Growth Package") is weakening. On March 25, the Senate voted to shrink the $726 billion package down to $350 billion. (In an earlier vote, the House passed the full $726 billion tax cut - and more than $260 billion in cuts to veterans' assistance, Medicaid, Medicare, food stamps and other programs - in a very close vote, 215-212.)

House and Senate Republican leaders are meeting to try to settle on a size for the tax cut. There is no word yet on what the final amount will be, so now is the time to call, email, or fax your senators and representative to tell them to oppose the tax cuts and spending cuts. A vote on the nation’s budget is a vote for or against the nation’s priorities. Remind your Members of Congress that:

  • Tax cuts would be unwise under any circumstances, but in a time of war, they are reckless and unconscionable.

  • We can't afford massive, unending and costly tax breaks at the expense of funding for vital programs such as Medicaid, Medicare, Food Stamps, child care, and those serving the country's veterans and low- and moderate-income families.

  • If enacted now, these tax cuts will tie the country's hands to prevent it from making the long-term investments necessary to ensure the health, safety and overall well-being of ourselves and our families for decades to come.

Two Republican Senators – Olympia Snowe (ME) and George Voinovich (OH) – made clear to the White House that they would not accept a tax cut above $350 billion. However, some House Republicans have said they are not willing to support any tax cut less than $500 billion. The result of this high-stakes showdown might be the inability to pass any budget resolution.

OMB Watch does not believe any additional tax cuts are warranted at this time. The size of the proposed tax cuts is not large enough to stimulate the economy or have much impact. Yet they are big enough to have a huge impact on spending initiatives – resulting in massive program cuts. The priority remains ensuring resources necessary for building and maintaining the infrastructure vital to the health and well-being of the country.

To contact your Members directly, go to OMB Watch’s Take Action Alert Page.

For more information and to sign a petition opposing these tax cuts, go to the Fair Taxes for All website.

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