Final numbers on the differing budget packages in the Senate and the House are far from concrete, with work expected through Thursday, but as they take shape some differences are emerging. Both the House and the Senate Budget Committees would move $726 billion (out of a total of $1.31-$1.35 trillion worth of tax cuts) of President Bush's new tax cut packages into reconciliation instructions, which would prevent filibusters from affecting them in the Senate. The cuts not included in the instructions could still be subject to filibuster. The House version cuts mandatory spending programs by $470 billion over 10 years, while the Senate version aims to reach a balanced budget by 2013, the final year mentioned in the plan.

The moderate movement in the Senate to reduce the overall package by half appears to have lost a little momentum as "sticker shock" from the overall deficit projection last week, coupled with the costs of a possible war with Iraq have begun to weigh heavily in some lawmaker's minds. The administration hasn't currently projected the costs of a war, and with such a large figure still unknown, several Senators have backed away from a tax cut package of any size until the numbers are disclosed.

There's sure to be plenty of resistance on both sides of the Capitol to the spending cuts and projected deficits contained within both budget blueprints, but we'll be sure to keep our friends and clients updated as progress is made throughout the week.