Bush defends the 2.77 trillion dollar federal budget plan he unveiled earlier this week.
Speaking to the Business and industry association the President characterized his budget decisions as being driven by a basic logic -- one the President says should be familiar to any American family.
"You know what it's like to manage your family budget….. you know, of course you'd like to take a vacation every week, you know, some exotic place….But you got to set your priorities, you cant do that…..You want to do this do that, go to a fancy restaurant every night, but that's not setting priorities…..families set priorities, individuals set priorities, business people set priorities all the time when it comes to setting the budget and that's what the federal government need to do."
Among those priorities, Bush said, is ensuring taxes remain low by making permanent earlier reductions to income, interests and dividends, capital gains and estate taxes.
"The reason why is, cutting taxes caused the economy to grow……and as the economy grows…there's more revenue in the private sector…think about that."
On the spending side, Bush said the federal government needs to trim the ballooning sails of entitlement programs like Medicare, and Medicaid…..Bush has proposed reducing anticipated spending by some 36 billion dollars over five years…..Bush asked the audience to see the move for what he says it is..
"People call it a cut in Medicare, that's not a cut, it's slowing down the rate of growth…..It's a difference between slowing your car down to go to the speed limit or putting your car in reverse."
The President went on to similarly defend policy decisions regarding Medicaid…… ….and federal student loan programs……
"We save money for the taxpayers by making rational reforms."
Bush's budget goals have drawn criticism from both sides of the political spectrum…….Liberals say he cuts too much spending…….and some conservatives say he isn't cutting enough…….Both sides share concerns that the plan will lead to larger deficits…… The audience at the BIA audience was, in the main, less vocal with criticism or priase…….Tess Stack Kuenning, director of the bi-state care association said she was happy that President is pushing for more spending for community heath centers, but worried that reductions to Medicaid could pose a big problem.
"Before, when they were decrease resources for Medicaid…..it was always the onus of the state to help out with that the onus is on the beneficiary…..with potential co-pays, potential deductacble….and that type of burden may just be too much for beneficiaries to handle."
The potential downshifting of federal costs on to the state tax base has been a concern of the business and industry association……..BIA President Jim Roache says he's waiting to see how the President's changes to entitlements will affect local heath care costs….Adding that it's probably best to see the speech as little more than a bit of Presidential lobbying.
"Clearly he has a vested interest….and I don't think it was any coincidence he came to the home state of Judd Gregg who chairs the budget committee to put a finer point of the highlights of his budget."
So far….Senator Gregg and the rest of the congressional delegation have met the Bush budget with a lukewarm response…….Gregg has spoken most positively -- saying he believes Bush can halve the deficit by 2008…..Senator Sununu, for his part, called that deficit reduction target only a ballpark figure……Congressman Bass and Bradley, meanwhile, have indicated they need to look at the plan more closely…..
