Posted by casey at November 18th, 2005

Last time I checked 50 billion in spending cuts and 60 billion in tax cuts adds 10 billion to the deficit. How exactly is this a winning budget plan as so proclaimed by the Republicans?

After weeks of lobbying and intra-party squabbling, the House of Representatives narrowly approved a five-year, $50bn package of cuts to federal benefits programs, while the Senate backed a $60bn package of tax cuts.

It is a shame the 50 billion in cuts are to programs like Medicaid, food stamps, student loan subsidies, state child-support enforcement programs, and farm support. It is estimated that the House bill would cut $220,000 people off food stamps. I wonder how many of those people live in New Orleans? How quickly we forget the President’s pledge to rebuild New Orleans and put an end to the poverty in that region. Has the OMB even taken into account the President’s Katrina speech? Maybe they are still working on last year’s numbers? Where is the “unprecedented response of an extra 60 billion dollars” asked for by the President going to come from? — (let me guess the poor in New Orleans will have to give up more programs.) Was that all empty rhetoric of a President trying to save face?
My favorite part of this whole House budget proposal is a “concession” to the moderates.

A provision denying Medicaid nursing home benefits to people with home equity of $500,000 or more was modified by raising the equity standard to $750,000 or more.

Are you kidding me. If you have $500,000 in home equity you don’t need Medicaid because you probably are already a doctor with a great health care plan. Seriously… Raised from $500,000 to $750,000 … WTF… How can we give 60 billion in tax cuts to the wealthiest Americans and nonchalantly cut food stamps for 220,000 of the poorest Americans? You do know what I mean by “tax cuts to the wealthiest,” right? If not… that means lowering the dividend and long term capital gains tax rate from an already amazingly low 20% to 15%. When was the last time YOU paid 15% in income taxes? Could you imagine if they only took 15% out of your paycheck instead of more than 30%. Isn’t it backwards that the people that actually need the money to live are the people that don’t get it? Like I recently read… “Don’t Balance the Budget on the Backs of the Poor.” This “Reverse Robinhood” has to stop.

(Source MSNBC.com)
(Source WashingtonPost.com subscription required)