zimv20
Mar 10, 2005, 11:37 PM
link (http://www.nytimes.com/2005/03/10/politics/10budget.html?hp&ex=1110517200&en=41cfa2a15543254a&ei=5094&partner=homepage)
WASHINGTON, March 9 - President Bush's plan to extend his tax cuts over the next five years ran into resistance in the Senate on Wednesday as Republican leaders offered a budget for 2006 that would undo more than a fourth of the cuts that Mr. Bush has requested.
Uneasy about the potential impact on the ballooning federal deficit, the Senate Republicans called for $70.2 billion in tax cuts over the next five years, as opposed to the estimated $100 billion the White House is seeking. It does not specify which cuts will be extended or which taxes might be restored, but Senator Judd Gregg, the New Hampshire Republican who is chairman of the Budget Committee, said his intent was to extend reductions on capital gains and dividend taxes, which are set to expire in 2008.
"I think we can get most of the expiring provisions, which I happen to consider to be fairly benign provisions with a lot of support, under the $70 billion umbrella," Mr. Gregg told reporters after introducing the $2.6 trillion proposal, which lays out a blueprint for spending through 2010. He added, "I think it's an appropriate approach."
The Senate's proposal to scale back the extension of Mr. Bush's tax cuts comes at a time when Republicans are also feeling queasy about the White House's major domestic policy initiative for the year, overhauling Social Security. And the budget was not enough to mollify some Senate Republican moderates, who expressed concern Wednesday about extending the tax cuts at a time when the deficit is at a record high and domestic programs from farm subsidies to veterans' benefits and education are facing steep cuts.
(more)
WASHINGTON, March 9 - President Bush's plan to extend his tax cuts over the next five years ran into resistance in the Senate on Wednesday as Republican leaders offered a budget for 2006 that would undo more than a fourth of the cuts that Mr. Bush has requested.
Uneasy about the potential impact on the ballooning federal deficit, the Senate Republicans called for $70.2 billion in tax cuts over the next five years, as opposed to the estimated $100 billion the White House is seeking. It does not specify which cuts will be extended or which taxes might be restored, but Senator Judd Gregg, the New Hampshire Republican who is chairman of the Budget Committee, said his intent was to extend reductions on capital gains and dividend taxes, which are set to expire in 2008.
"I think we can get most of the expiring provisions, which I happen to consider to be fairly benign provisions with a lot of support, under the $70 billion umbrella," Mr. Gregg told reporters after introducing the $2.6 trillion proposal, which lays out a blueprint for spending through 2010. He added, "I think it's an appropriate approach."
The Senate's proposal to scale back the extension of Mr. Bush's tax cuts comes at a time when Republicans are also feeling queasy about the White House's major domestic policy initiative for the year, overhauling Social Security. And the budget was not enough to mollify some Senate Republican moderates, who expressed concern Wednesday about extending the tax cuts at a time when the deficit is at a record high and domestic programs from farm subsidies to veterans' benefits and education are facing steep cuts.
(more)
