In budget wrangling, cost of doing nothing grows
At stake are competing visions of how to restore fiscal stability and ward off a recession.
Congress plunged into next year's federal budget with marathon mid-week markups that framed a debate likely to be settled only by a new Congress and a new president.Skip to next paragraph
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At stake are competing visions of how to restore fiscal stability and keep the economy from sliding into recession.
For Democrats, the key is letting most of the Bush tax cuts expire in 2010, as currently projected, and targeting spending to promote growth.
Republicans say that tax cuts create the conditions for economic growth, and that it's spending, especially soaring entitlement spending, that must be cut.
But neither side of the aisle has the numbers – or consensus within its party caucus – to shift budget priorities decisively this year. The result is likely to be to punt long-term reform of taxes, spending, and entitlements to a new Congress.
With a bare majority in the Senate – and two of their own still in the hunt for the presidency – Democrats see little prospect of moving anything more than a status quo budget, if that.
As the budget committee in the House began its markup Wednesday morning, the national debt stood at $9,369,868,561,555.66. That's about $30,000 owed by every American man, woman, and child, Democrats note as they argue the case for ending the Bush tax cuts.
Republicans counter that the nation's unfunded liabilities in Medicare, Medicaid, and Social Security are much larger. With an unfunded liability of more than $50 trillion, according to the Government
The White House budget projects a surplus of $48 billion by fiscal year 2012 and a surplus of $29 billion by FY 2013. The House version of the budget moves to a surplus of $178 billion by 2012; the Senate version of the bill anticipates a $177 billion budget surplus by 2012.
But neither the House nor the Senate version projects extending the Bush tax cuts, set to expire in 2010. House Republicans plan to propose a substitute that keeps taxes low and includes cuts in entitlement spending.