Story Published:
May 17, 2006 at 8:56 PM PDT
Story Updated:
Aug 31, 2006 at 8:26 AM PDT
WASHINGTON, D.C. - The House passed a $2.8 trillion budget
blueprint early Thursday after GOP moderates won a promise for
modest increases in spending on education, health and other social
programs.
The House passed the Republican plan by a 218-210 vote.
For GOP leaders, passage of the Republican plan avoided the
embarrassment of not being able to pass a budget through the House
for the first time since congressional budget rules were put in
place in 1975.
It's improbable, however, that the House and Senate will be able
to agree on a mutual budget plan. Differences between House
conservatives determined to stick with President Bush's caps on
agency budgets funded each year and Senate GOP moderates determined
to breach them simply appear too great.
Still, the debate on the annual budget resolution - a nonbinding
blueprint that sets the broad parameters for upcoming tax and
spending bills - gave Democrats and Republicans ample opportunity
to illustrate the differences between their parties.
Every Democrat who voted opposed the bill. Twelve Republicans,
split between moderates opposed to budget cuts and conservatives
worried about national debt and deficits, went against GOP leaders
and voted "nay."
For Republicans, the plan steers a steady path limiting the
growth of spending while assuming $228 billion in additional tax
cuts over five years, much of which would go toward extending GOP
tax cuts slated to expire in 2010.
They credited existing tax cuts with a booming economy producing
surging revenues that are driving current-year deficit estimates
perhaps $100 billion below the record $423 billion in red ink
predicted by the White House in February.
Majority Leader John Boehner, R-Ohio, said the GOP blueprint
"strengthens our efforts to control spending and, coupled with a
robust economy fueled by tax relief, is making real progress in
driving down the deficit."
The House vote came hours after President Bush signed a
deficit-financed $70 billion tax cut bill extending lower rates for
investors and saving billions for families with above-average
incomes threatened by the alternative minimum tax.
But those tax plans are simply illustrative since the budget
plan doesn't take the necessary steps under Congress' arcane budget
process to facilitate their passage through the filibuster-prone
Senate.
Democrats countered that the House GOP plan requires a $653
billion increase in the national debt to $9.6 trillion and that the
deficits produced by the plan are likely to be far larger than the
$1.1 trillion Republicans assume will accumulate under the measure
if its policies are followed.
That's because the measure doesn't take account of the long-term
costs of the war in Iraq or of shielding middle- to upper-income
taxpayers from the alternative minimum tax. Many of the long-term
spending cuts assumed by the GOP plan are politically
unsustainable.
"The House Republican budget makes the deficit worse, offers no
plan to bring the budget back to balance and adds to the growing
burden of the national debt," said John Spratt of South Carolina,
top Democrat on the Budget Committee. "The Democratic budget ...
rejects the Republican budget's harmful cuts to domestic priorities
while still reaching balance in 2012."
Republicans voted down a Democratic alternative that contained
more funding for popular domestic programs such as education,
veterans health care and health research while balancing the budget
by 2012 - but only by allowing hundreds of billions of dollars in
GOP-passed tax cuts to expire.
This year's budget plan, developed by the House Budget Committee
and House GOP leaders, reflects election-year realities and drops
Bush's proposed cuts to Medicare, Medicaid, crop subsidies and
other politically sensitive programs.
It still dismays moderates by adopting the president's plan to
trim spending by most Cabinet agencies other than the Pentagon and
the Homeland Security Department. The plan endorses Bush's proposed
7 percent increase in the core defense budget - which doesn't
include Iraq war costs - for next year.
The Republican plan also assumes just $50 billion for military
operations in Afghanistan and Iraq - less than half of expected
spending for the current year.
While the House GOP plan drops $65 billion in benefit cuts over
five years proposed by Bush's February budget, it goes further than
Bush in attacking appropriated spending, the approximately
one-third of the budget passed by Congress each year.
It would cut federal spending on education by more than $5
billion, about 7 percent. And after allowing for an increase next
year, it would cut the politically sensitive budget for veterans
medical care below current levels through the rest of the decade.
The deadline for Congress to wrap up the budget outline came and
went a month ago, but divisions among House Republicans have kept
party leaders from bringing the House version of the measure to a
vote.
Led by Michael Castle of Delaware, Republican moderates refused
to supply votes for the measure until GOP leaders promised to beef
up the budget for social programs.
On Wednesday, however, Castle won a promise from Boehner for a 5
percent, or $7 billion, increase over Bush's $138 billion request
for a popular measure funding the departments of Labor, Health and
Human Services and Education.
Savings would have to come from elsewhere in the budget to pay
for them, however.
Already, House Appropriations Committee Chairman Jerry Lewis,
R-Calif., has orchestrated a shift of about $4 billion for such
programs, taking the money from defense and foreign aid accounts.
Virtually all of the bills approved so far by the powerful panel
for domestic programs failed to live within Bush-proposed limits.