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, and the Small Business Survival Foundation, 1320 18th St. NW, Washington, D.C. 20036 (202) 785-0238, Fax (202) 822-8118.
Issue # 16 - October 26, 1995 * David A. Ridenour and Karen Kerrigan, Editors
Separating Budget Myth from Budget Reality
As the House of Representatives prepares to vote on the budget reconciliation bill (H.R. 2491) -- a vote that could occur as early as 6:00 P.M. October 26 -- myths continue to abound about the budget and the budget process. Myth: The President has offered a more compassionate proposal that would permit the budget to be balanced within ten years. Fact: The President's proposal, outlined in June, would not balance the federal budget in ten years or any time in the foreseeable future, according to the nonpartisan Congressional Budget Office. Instead it would produce annual deficits in the $200 billion range (see chart). Myth: Tax cuts included in Congress' budget reconciliation bill would go to the wealthy. Fact: 74% of the child tax credit would go to families earning $75,000 or less, 15% to families earning between $75,000 and $100,00 and just ten percent to families earning over $100,000. Americans with modest incomes would also benefit from the capital gains tax cut: 60% of Americans reporting capital gains income earn less than $50,000 in adjusted gross income. Myth: The budget reconciliation bill includes massive cuts in Medicaid. Fact: The bill would restructure Medicaid under a new MediGrant block grant program and funding would increase from $89.2 billion in fiscal year 1995 to $124.3 billion in 2002.
Measure to Curb "Welfare for Lobbyists" in Jeopardy
The grant reform measure introduced by Representatives Ernest Istook (R-OK), David McIntosh (R-IN) and Bob Ehrlich (R-MD) aimed at limiting public funding of groups that lobby was detached from the Treasury/Postal Appropriations bill (H.R. 2020) yesterday by House-Senate conferees. This means a separate vote will be held in both Houses on the measure. Though supporters are optimistic that it will be approved in the House, the prospects for a strong anti-lobbying provision being approved in the Senate are considered poor. Supporters say the following Senators need to hear from their constituents that they want an end to government funding to the spending/deficit lobby: Bond, Chafee, Cohen, D'Amato, Domenici, Kassebaum, Lugar, Roth, Snowe, Warner, Bennett, Coats, Cochran, Grassley, Mack, Specter, Thompson, Campbell, Hatfield, and Jeffords.
Clinton After Dark: Profound Tax and Budget Statements Made by a Tired President "It might surprise you to know that I think I raised them [your taxes] too much too." Bill Clinton, October 17
President Clinton has basically told the American people that he cannot be held responsible for anything he says after 7:00 P.M., so Budget Watch (BW) pulled a few quotes from nighttime speaking engagements during his presidency and the '92 campaign. BW readers can decide for themselves how bushed the Commander-in-Chief was...
"[As president] I would present a five-year plan to balance the budget." -- CNN's Larry King Live, June 4, 1992
"Let's at least argue about the same set of numbers so the American people will think we're shooting straight with them." -- The President's endorsement of CBO projections in an address to a joint session of Congress, February 17, 1993
"Today, Medicaid and Medicare are going up at three times the rate of inflation. We propose to let it go up at two times the rate of inflation. That is not a ... cut. So when you hear all this business about cuts, let me caution you that is not what is going on." -- The President explaining his health care plan in a speech to the AARP, October 5, 1993
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