Frost Release on Budget Surplus: 'Whoops, There It Goes'
JUL. 11, 2001
Frost Release on Budget Surplus: 'Whoops, There It Goes'
DOCUMENT ATTRIBUTES
- AuthorsFrost, Rep. Martin
- Institutional AuthorsHouse of RepresentativesHouse Democratic Caucus
- Subject Area/Tax Topics
- Index Termsbudget, federalbudget, federal, surplusincome tax, individualslegislation, taxMedicaresocial security benefits
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-19079 (1 original page)
- Tax Analysts Electronic Citation2001 TNT 135-23
=============== FULL TEXT ===============
House Facts
House Democratic Caucus -- Hon. Martin Frost, Chair
July 11, 2001
GOP Sen. John McCain: "The tax cut will 'preclude us from having
enough money for Social Security, Medicare and defense.'"
(Washington Times, 7/6/01)
[1] Republicans inherited the largest budget surplus in American history. Not even 6 months later, the surplus is shrinking -- and the Bush Administration and the GOP Congress have put the country on track to raid the Social Security and Medicare Trust Funds, despite GOP promises to keep them in "lockboxes."
GOP SWAPS SURPLUSES FOR 'BALLOONING DEFICITS'
o NY TIMES: "MR. BUSH GAVE UP LONG-TERM FISCAL DISCIPLINE FOR
SHORT-TERM POLITICAL GAIN, and the salad days of surpluses
have transmogrified into the bad old days of budget bickering
. . . THE BALLOONING DEFICITS OF [THE 1980s] . . . WILL BE
DWARFED BY THE ONES THAT ARRIVE WHEN SOCIAL SECURITY AND
MEDICARE GO INTO THE RED. IN THE MEANTIME, PRUDENT AMERICANS
SHOULD TRY TO SOCK SOME MONEY AWAY. BY CUTTING THEIR TAXES
NOW, MR. BUSH HAS VIRTUALLY GUARANTEED A COSTLY FUTURE."
(edit., New York Times, 7/7/01)
o COLUMNIST: "Forget about those budget surpluses as far as the
eye can see; FROM NOW ON THE PROSPECT IS FOR CHRONIC BUDGET
SHORTFALLS." (Paul Krugman, New York Times, 7/6/01)
o WASH. POST: ". . . the slowing economy and President Bush's
recently enacted tax cut have combined to shrink the
government's likely surplus. . . ." (Washington Post, 7/9/01)
GOP RAID ON SOCIAL SECURITY AND MEDICARE
o WASH. POST: "The latest estimate is that the government likely
will have to dip into the Medicare trust fund this year, and
that next year it will be tapping the Social Security trust
fund as well." (edit., Washington Post, 7/10/01)
o NY TIMES: ". . . instead of residing peacefully in 'lockboxes'
for the next decade, the trust funds collected to cover baby
boomers' Social Security and Medicare benefits may be TAPPED
AS EARLY AS THIS YEAR." (edit., New York Times, 7/7/01)
o WASH. TIMES: "While conservatives argue that tax cuts are the
panacea for slow growth, many fear that shrinking federal
receipts -- from tax cuts and slow growth -- could force
Congress to resume tapping the Social Security receipts to
balance the budget." (Washington Times, 7/6/01)
GOP BUDGETARY DISHONESTY (A.K.A., 'FUZZY MATH')
" . . . to sell the tax cut Mr. Bush's people deliberately underestimated the cut's impact on revenues; deliberately underestimated the cost of delivering on the administration's promises on defense, education and prescription drugs; and deliberately swept under the rug other budget issues, like the need to fix the alternative minimum tax, that will inevitably subtract hundreds of billions from the surplus. IN SHORT, THE CLAIM THAT THE TAX CUT WAS EASILY AFFORDABLE GIVEN OTHER PRIORITIES WAS WHAT IS TECHNICALLY KNOWN, AS A 'LIE.'" (Paul Krugman, New York Times, 7/6/01)
DOCUMENT ATTRIBUTES
- AuthorsFrost, Rep. Martin
- Institutional AuthorsHouse of RepresentativesHouse Democratic Caucus
- Subject Area/Tax Topics
- Index Termsbudget, federalbudget, federal, surplusincome tax, individualslegislation, taxMedicaresocial security benefits
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-19079 (1 original page)
- Tax Analysts Electronic Citation2001 TNT 135-23
