Budget Battles Escalate | Tax Cuts, Deficits Examined Closely
Republicans may scale back tax cuts or abandon many of the spending cuts they had hoped would fund them due to an open revolt from moderate House and Senate Republicans.
Both chambers are scheduled this week to vote on the adoption of the budget resolutions which are the blueprints that would establish the size of any tax cut and limits on federal spending for 2004 and beyond. Last year, these resolutions failed to be adopted, eventually causing a delay which forced most FY03 spending bills to be passed this January.
It is unclear whether either body can pass the plans that were approved last week by their respective budget committees. Moderates of both parties have been bolstered because of concern surrounding the prospects of war and its unknown costs.
Both resolutions fund nearly all of the $1.6 trillion in tax cuts proposed while giving special treatment to the economic growth plan to help it pass through the Senate. Lawmakers expressed concern in both Houses about the deficit - both resolutions call for a balanced budget in 2010 in the House plan and 2013 in the Senate plan. This is different from the President's plan which does not address the issue of deficits.
Neither plan discusses funding for any upcoming war.
House leaders have been trying to get the votes needed to pass their resolution. But simulataneously, they have been trying to come up with an alternative plan which might re-write parts of the the resolution - particularly the Medicare cuts. One plan may be to allow the House plan to be defeated on a procedural vote and then order the Senate version to the House floor as a substitute. That way, House Republicans won't be forced to take politically sensitive votes on key potential cuts.