March 9, 2003

The spending by this president and his congressional allies has been phenomenal. And, it has taken just two years to do it!

When he took office there was a budget surplus. Now there are massive deficits. Despite this, the president recently  proposed new tax cuts costing about $1.5 trillion over 10 years. Add to that, a $1.35 trillion tax cut passed in 2001.

The budget will eliminate taxation on dividends and estates. There will be add additional spending for the military (wars are expensive) and homeland defense (defense in war is expensive).

Bush is helping domestically by providing more funds needy schools, and drug treatment programs. The resulting deficits will be enormous and according to Administration figures will be: $304 billion for 2003, $307 billion for 2004 and less than $200 billion in 2007. They hope.

This is where the taxes start:

Removing dividends from taxation means states with income taxes will have to make up the difference in new state taxes.

Inheritance taxes, a portion of which the states receive will be gone and new state taxes will be needed.

The Administration has cut Medicare payments to health care providers. The states must make up the difference.

The feds will only partially offset mandated homeland security programs. The states must make up the difference.

There will be cuts in many areas such as rural development, literacy programs, environmental protection, public housing, after school programs, teacher training and technology projects. If those needs are important, then states will have to ante up.

Changes planned for Medicare and Medicaid  will eventually shift those programs to the states via grants which can be eliminated, forcing states to pay the entire bill.

There is a balance to things. Take away from one place, results in a change in another. Bush is shifting taxes to the states. Maybe that is a good thing to do, but to criticize others as "tax and spend" in disingenuous. "Spend then tax" is the same thing, done in a different way.