Budget double-speak

Bush has overseen a dramatic worsening of the budget picture after inheriting a record surplus. He hopes to improve his fiscal image before the November election by promising to reduce the deficit by a third next year and in half by 2007.

The White House still expects the shortfall to total $1.35 trillion through 2009, and for government debt to rise from $8.1 trillion to $10.5 trillion.

"The government must exercise fiscal responsibility by limiting spending growth, focusing on the results of government programs, and cutting wasteful spending," Bush said.  Reuters article

President Bush stressed his commitment to fiscal restraint Saturday...  CBS News article

Hmm...that's interesting, because....

The US administration on Monday announced a 401.7 billion dollar defense budget for 2005 that funds a rudimentary missile defense system but puts off how to pay for operations in Iraq and Afghanistan until after the presidential election.

...If approved by Congress, military spending would go up seven percent next year, swelling the size of the US defense budget for the fifth year in a row.  CNN article

"Puts off how to pay for operations...until after the presidential election." If that doesn't jump-start your financial jitters, I don't know what can.

And wait a minute....fifth year in a row? I thought Clinton ripped the military budget.

he Bush administration's 2005 defense budget envisions spending on new weapons reaching $114 billion in fiscal year 2009, including huge outlays for new ships, unmanned and manned aircraft and other weapons.

The Pentagon's $401.7 billion budget plan for 2005 -- sent to Congress Monday -- earmarks $74.9 billion to buy new weapons, including a 13-percent increase in missile defense spending and a near doubling in funding to $3.2 billion for a high-tech program to modernize the U.S. Army, both programs in which Chicago-based Boeing Co. has a big stake.  Forbes article

Boeing?

Moreover, the Defense Department's big weapons programs have a history of cost overruns -- and the Congressional Budget Office and other groups estimate existing plans could wind up costing $50 billion to $100 billion more than projected.

Ah, yes. The overruns.

Facing a record $521 billion deficit, President Bush proposed a $2.4 trillion election-year budget on Monday that will cut dozens of domestic programs...  Reuters article

The election year will be "a challenging year for making sure we spend the people's money wisely," Mr. Bush said, and he even singled out health care costs as an area that particularly needs discipline.

...[Rep. Brad Miller (D-NC)] said, "Last year President Bush thought health care for veterans was wasteful spending and he put funding for education in that category, too."   CBS News article

Well, that's okay, Brad. We need more weapons. When preparing a budget, you have to have priorities.

But fiscal conservatives in both parties doubt Bush can deliver on his deficit reduction promises.

His fiscal 2005 budget left out the tens of billions sure to be needed next year to keep U.S. troops in Iraq and omitted a fix for provisions in the tax code that will put a big burden on many middle-class households.

Homeland security and the military will be the budget's biggest winners with rises of nearly 10 percent and 7 percent respectively.

Defense contractors including Lockheed Martin Corp., Boeing Co., Northrop Grumman Corp., Raytheon Co. and General Dynamics Corp. stand to benefit as Bush's $401.7 billion military budget increases spending on missile defense and on modernizing the Army.

Hardest hit were the departments of Agriculture and Transportation, the Environmental Protection Agency, the Small Business Administration, and the Corps of Engineers, with cuts ranging from 1 percent for the Commerce Department to as much as 49 percent for the General Services Administration.

To placate conservatives threatening a revolt, growth of discretionary spending -- outside of homeland security and defense -- would be capped at 0.5 percent. Because that is well below the inflation rate, it amounts to a cut in domestic programs and the lowest growth since 1993.

Go get 'em, Georgie. Pay no attention to the naysayers. You can wreck this country.

Some tax breaks favored by Republicans will also be reined in, including some for energy production and business investment.

Bush will delay budget-busting reform of the alternative minimum tax, which requires a growing number of middle-income taxpayers to calculate their taxes in two ways and pay the higher bill.

Instead, Bush will propose a one-year extension of the AMT provisions. As with Iraq, he has decided to push back the day of reckoning until after the election.

As with.

....but hey, do what you want....you will anyway.