Budget Deal Reached, but Outlook in the Senate Is Unclear

By EDMUND L. ANDREWS

Published: May 19, 2004


WASHINGTON, May 18 - Republican Congressional leaders reached a tentative budget compromise on Tuesday that would extend several of President Bush's major tax cuts. But the deal would extend the cuts for only one year, and Senate leaders said that even that provision might not be enough to get enough votes to pass it.

The plan tries to resolve a battle between the House and the Senate over whether to require that new tax cuts be financed by either spending cuts or tax increases in other areas. The Senate's budget resolution includes such a requirement, but the House's does not; House Republican leaders and the Bush administration have adamantly opposed any restrictions on tax reduction.


The compromise reached Tuesday would impose that "pay as you go" requirement for one year while exempting three popular elements of last year's big tax-cutting package that are scheduled to expire at the end of this year. The three provisions are an expansion of the 10-percent tax bracket for lower-income households, an increase in the child tax credit and adjustments aimed at reducing the "marriage penalty" among two-income families.

Under the agreement, Congress, contrary to what Mr. Bush has been seeking, would not make any of the tax cuts permanent. Instead, lawmakers would have to revisit them in their entirety again next year.

Congressional analysts have estimated that extending the three tax cuts that are exempted under the deal would cost more than $500 billion over the next 10 years, and that extending all of Mr. Bush's tax cuts could cost nearly $2 trillion over 10 years.

http://www.nytimes.com/2004/05/19/politics/19budget.html

GOP Takes a Chance on Weakened Tax Cuts


May 19, 4:34 AM (ET)

By ALAN FRAM

WASHINGTON (AP) - Congressional Republicans hope weakened restrictions on tax cuts will end their gridlock over the federal budget, but they could be rolling the dice because they may be short of votes in the Senate.

After a two-month stalemate, top Republicans decided to try pushing a $2.4 trillion budget plan through Congress this week. House approval, which seemed virtually certain, could come as early as Wednesday.

Interviews with moderate GOP senators Tuesday, however, indicated that at least three of them oppose the weaker plan, which potentially leaves Senate leaders a vote shy of passage. Democrats and moderate Republicans say the limits are needed in an era of record budget deficits expected to soar past $400 billion this election year.

The plan would impose tax-cut curbs that would expire next year, rather than lasting five years like those the narrowly divided Senate approved in March. It probably also would exempt three popular middle-class tax reductions, probably the only cuts that will pass Congress this year anyway.



http://apnews.excite.com/article/20040519/D82LHO780.html

10% extended tax bracket
Child Care Credit
Married tax equilization

The three items that put money in poor peoples pockets to spend will bite the bullet for the "Rangers" and "Pioneers" benefit.

you know what I'm seeing here games. It's political games being played by RepubliCons with the tax cut.
In the House the Cons don't want to do 'pay as you go' they aren't going to pass it Unless they get to keep the tax cut for the rich. I watched them fight tooth and nail against 'pay as you go' last week.

If I was voting I would not vote for this it's nothing. I say let the Cons pass it without 'pay as you go' and keep 10% extended tax bracket, child care credit and the married tax equalization.

They have not brought a damn thing to the table worth a deal. The only way they (House Pukes) are going to agree to 'pay as you go' is if we give up the tax cut for the workers and they get to keep all of their cuts for the top 1% ***I DON'T THINK SO*** this is a No Deal.