FY 2005 Budget Plan Stalled
Over Tax Offsets
April 9, 2004 - Negotiations on the FY 2005 budget
resolution (H.Con.Res.
95) have been put on hold until Congress reconvenes the
week of April 19. At that time, Republicans will again try
to resolve their differences over the extent to which future
tax increases must be offset by spending cuts or other revenue
increases.
The Senate version of the budget resolution would reinstate
rules calling for such offsets unless 60 members of the Senate
agree to waive the requirement. The House GOP leadership,
concerned about the impact of this proposal on future tax
cuts, is opposed to the provision. Office of Management and
Budget Director Joshua Bolten April 7 reiterated the White
House's objection to the Senate provision.
The White House April 2 sent to Congress a budget enforcement
proposal that does not require offsets for additional tax
cuts. The Administration plan would impose statutory limits
on discretionary spending, beginning in FY 2004, and create
a "firewall" to prevent appropriators from shifting
funds between defense and non-defense programs.
The House is scheduled to vote before Memorial Day on a budget
enforcement bill (H.R.
3973) that would require offsets for additional mandatory
spending, but not tax cuts, and would cap discretionary spending,
but not create a firewall to protect defense spending.
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
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