LYCOS RETRIEVER 
Cuts: Bush Administration
built 635 days ago
Administration officials had dismissed the significance of the proposed cuts when they surfaced in February as part of an internal White House budget office computer printout. At the time, officials said the cuts were based on a formula and did not accurately reflect administration policy. But a May 19 White House budget memorandum obtained by The Washington Post said that agencies should assume the spending levels in that printout when they prepare their fiscal 2006 budgets this summer.
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The four attached charts focus on the employment gains from making the tax cuts permanent—or, alternatively, the forgone potential growth should Congress fail to act. Chart 1 presents the average annual growth in employment for each state between 2008 and 2014 if the tax cuts are made permanent. The year 2008 is important from a policy perspective because investors, workers, and business owners will know then whether or not significantly higher taxes are in their future as the low tax rate on capital gains and dividends is now set to expire on December 31, 2008. Chart 2 presents the average annual growth in disposable personal income in every state if the tax cuts are made permanent. Chart 3 focuses on the states that the Bush economic team will visit in the coming days and covers the four-year period, from 2011 through 2014, during which the biggest economic gains from permanency will be realized, while Chart 4 presents income growth over the same period—but only, that is, if Congress makes the tax cuts permanent.
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PETALUMA, Calif., February 14, 2006 /PRNewswire/ -- The American Small Business League has reviewed OMB projections for the next several years which show that the Bush Administration plans further cuts to the beleaguered SBA. Having already cut the agency in half since taking office, President Bush has recommended reducing it every year going forward through 2010.
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Further, while the Administration has credited the tax cuts with the drop in the fiscal year 2007 deficit to “only” $163 billion, this year’s budget would be in surplus were it not for the tax cuts. Based on Joint Committee on Taxation estimates, the total cost of tax cuts enacted since January 2001 is $300 billion in 2006, taking into account the increased interest costs on the debt that have resulted from the deficit financing of the tax cuts. This means that even with the spending for the wars in Iraq and Afghanistan, the federal budget would be in surplus now if the tax cuts had not been enacted, or if their costs had been offset. While supporters of these tax cuts claim that their positive economic effects have lowered their cost, the non-partisan Congressional Research Service found in a September, 2006 report that “at the current time, as the stimulus effects have faded and the effects of added debt service has grown, the 2001-2004 tax cuts are probably costing more than expected.” (http://www.cbpp.org/8-17-06bud.htm)
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