House GOP splits with Senate over need to pay for tax cuts

[Judi Lynn]

House GOP splits with Senate over need to pay for tax cuts

ALAN FRAM, Associated Press Writer
Tuesday, March 16, 2004


(03-16) 23:52 PST WASHINGTON (AP) --

The House Budget Committee is splitting with the Senate over the need to pay for tax cuts, presaging an election-year fight over procedural restrictions that could hinder President Bush's quest for more tax reductions.

The Republican-run budget panel planned to meet Wednesday to approve a bill requiring lawmakers to find spending cuts to pay for any boosts in benefit programs like Social Security -- but not for tax cuts. That follows the strong wishes of the White House and Congress' GOP leadership.

The committee was also expected to adopt a $2.41 trillion budget for 2005. The fiscal outline envisions lower spending, smaller tax reductions and faster deficit reduction than Bush has proposed, a testament to GOP worries over political fallout from soaring federal shortfalls.

The budget, crafted by panel Chairman Jim Nussle, R-Iowa, would hold most domestic programs to the same levels as last year and give Bush the boosts he wants for defense and domestic security. It would also allow $138 billion in five-year tax cuts while claiming to halve this year's expected record $477 billion deficit in four years, a year quicker than Bush proposed.
(snip/...)

http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2004/03/16/national0252EST0440.DTL