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Unwilling to Freeze Future Tax Cuts for Richest One Percent, President Announces Plans for Budget Deficit

Self-described 'fiscal conservative' President admits he may be unable to balance budget

With his massive $3.1 trillion tax cut threatening to drain key resources for the war on terrorism and homeland security, President Bush admitted for the first time last week that his Administration may not be able to balance the budget, thus threatening to plunge the federal government back into deficit for the first time in years. Specifically, before a meeting with Federal Reserve Chairman Alan Greenspan, Bush said "we may not balance the budget for this year."

At a time when interest long-term rates are seen as critical to economic recovery, an exploding budget deficit could drive those rates higher, exacerbating the ongoing recession.

Last year, Democrats repeatedly attempted to scale back the portions of the tax cut that affected only the wealthiest one percent of taxpayers, but were voted down.

Even after September 11^th, when Democrats suggested scaling back the highest-bracket tax cuts to pay for a small, $6 billion package of immediate homeland security funding, Republicans and the President resisted.

Attached in Adobe PDF is a memo by the House Budget Committee detailing how the President's own tax cut is the major factor behind the return to deficits.

Just The Facts, Folks! Just The Facts! Award winning graphic of the economy over the last 30 years.  ILCA Saul Miller Award.

The Real Cost of the Republican Tax Cuts from the House Budget Democratic Caucus.