Budget Watch

 

A newsletter covering budget reform and the latest news and views on the federal budget, published by The National Center for Public Policy Research, 501 Capitol Court, N.E., Washington, D.C. 20002, (202) 543-4110, Fax (202) 543-5975, E-mail [email protected] Web http://www.nationalcenter.org and the Small Business Survival Foundation, 1320 18th St. NW, Washington, D.C. 20036, (202)785-0238, Fax (202)822-8118, Web http://www.sbsc.org.

 

Issue #1 * June 22, 1995 * David A. Ridenour and Karen Kerrigan, Editors



*Hill Watch - Update on Pending Legislation on Capitol Hill

Reconciliation Moving Forward -- "Differences are Narrowing"
Tax Cut Range Finder -- $240-$250 Billion:

House and Senate negotiators are moving closer to an agreement on budget reconciliation, but remain "in flux" on several contentious items. The magic "tax-cut number" is nearing, and negotiators have agreed in principle on a compromise package. On spending, negotiators are still wrangling, primarily over defense spending. While broad principles are guiding decisions, the final language resulting from the negotiations will allow both the House and Senate tax writing committees wiggle room over how the tax cuts are allocated -- if at all in the Senate depending on CBO certification that the budget is indeed moving towards "balanced" in 2002. If the House and Senate wish to seek final approval of the budget blueprint before the July 4 recess, negotiators need to reach a compromise by Monday or Tuesday morning of next week at the latest depending on the Senate's recess schedule. The $500-per-child tax credit, a capital gains tax cut, expanded IRA's and several small business provisions are leading candidates to be tax-cut winners reflecting a pro-growth, pro-family, pro-taxpayer strategy.

*Pork Patrol - Look Who's Feeding at the Public Trough

Taking From the Poor to Give to the Rich:

According to the CATO Institute, Sematech, a consortium of microchip producers, which includes such industry giants as Intel and National Semiconductor, receives $100 million a year from the federal government. Contact the CATO Institute at: (202) 842-0200 for more examples.

Taking Advantage of Others' Misery:

The 1994 Earthquake Relief Bill grew to a hefty $11 billion -- $4.8 billion more than President Clinton requested, as some lawmakers cynically took advantage of human suffering to fund their own pet projects. Among the so-called "earthquake relief" programs: $1.3 million for two sugar mill communities in Hawaii and $4.5 million for high-speed rail research. For more information, contact Citizens Against Government Waste at: (202)467-5300.

*Administration Watch - The Latest From and About the Clinton Administration<

Putting People First Redux: Clinton Plan Puts Government First:

Remember the Clinton election campaign manifesto -- The Putting People First (PPF) document that promised hundreds of action items, but was discarded shortly after President Clinton took office? PPF rhetoric is back -- and this time the American people have been promised a balanced budget by 2005. The CBO recently reviewed "The President's Economic Plan: A Balanced Budget That Puts People First," and found that the last thing it actually does is balance the budget. According to the analysis, a Clinton-led balanced budget effort would yield yearly deficits in the $200 billion range well into the 21st Century, adding some $2 trillion to the national debt by 2005 alone. By contrast, both the Senate and House budget plans would result in a balanced federal budget by the year 2002 . The President has publicly stated that the CBO is a reliable source on budgetary matters. It looks like the path to irrelevancy may be widened by the White House itself.




Nothing written here should be construed as an attempt to help or hinder legislation before the U.S. Congress. Copyright 1995 The National Center for Public Policy Research. Excerpts may be reprinted providing original source is credited.



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