Thursday, March 06, 2008

Democrats promise budget surpluses by 2012

WASHINGTON - House Democrats neared initial approval of an election-year budget blueprint late Wednesday that would produce sizable surpluses by 2012 by allowing President Bush's tax cuts to expire as scheduled.

The $3 trillion budget plan for 2009, expected to pass the House Budget Committee on a party-line vote, would award greater-than-inflation increases to domestic programs. That immediately earned a promise from the White House that Bush would veto subsequent spending bills funding agency budgets.

The Senate Budget Committee planned a vote Thursday on a largely similar plan. At issue is the annual congressional budget resolution, a nonbinding document that sets guidelines for later legislation to put in place tax and spending goals for the budget year that begins Oct. 1.

The Senate's measure is $18 billion, or 4 percent, more than Bush's budget for non-defense programs funded each year by Congress, such as education, health research, housing and health care for veterans. The House version offers an increase of $22 billion, almost 5 percent.

Both plans ratify Bush's $36 billion, or 7 percent, increase for the core Pentagon budget.

Bush claimed victory in last year's budget fight and is eager to bring lawmakers to heel again. As a result, Democrats are signaling they do not intend to send him many spending bills this year; they prefer to deal with his successor, who they hope will be a Democrat. Bush leaves office Jan. 20.

As for the 2001 and 2003 tax cuts, the budget plans leave their fate to the next Congress and the new president. Majority Democrats say they will likely allow income tax cuts for wealthy taxpayers to expire, but extend tax cuts for lower- and middle-income people.........

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