Federal Reserve Chairman Alan Greenspan Stressed The Importance Of Budget Discipline. “The Administration and the Congress can make a valuable contribution to the prospects for the growth of the economy by taking measures to restore this discipline and return the federal budget over time to a posture that is supportive of long-term economic growth.” (Alan Greenspan, Senate Banking, Housing And Urban Affairs Committee Hearing, July 16, 2002)
The Congressional Budget Office Reported That The Past Economic Recession, Not The Tax Cut, Put The Federal Budget Back In Deficit. The CBO reported August 13th that 80% of the change in revenue projections for FY 2002 was due to economic and technical changes, not tax relief. OMB agrees that a continued sluggish recovery could cause receipts to decline even further in future years than recently projected in the Mid Session Review. CBO’s numbers also show that if there never had been a tax cut, the budget would still be in deficit today. (Congressional Budget Office, “Budget And Economic Update,” August 2002)
The Congressional Budget Office Projects A Surplus And Brightening Fiscal Picture In The Near Future. We can return to surpluses in a few years by sustaining economic growth and following the President’s fiscal discipline: fully fund the war on terror and homeland security while slowing spending growth in the rest of government. The CBO projects an improving budget picture with a very slight deficit in FY 2005 and a return to balance in FY 2006, but only if spending is restrained. (Congressional Budget Office, Budget And Economic Update, August 2002)
Most Americans Are Optimistic About The Economy’s Future. 54% of Americans do not think the economy is in a recession. 63% of Americans think the national economy will be better a year from now than it is today. (American Research Group, Press Release, August 30, 2002)
Democrats Have No Plan For Economic Growth Besides Increased Spending And Raising Taxes. While Senate Democrats have failed to pass a budget, they have endorsed several trillion dollars in additional spending beyond what President Bush requested, which would increase the debt and guarantee permanent deficits. Some Democrats have even proposed raising taxes, but as our economy is struggling and many Americans are out of work, raising taxes is exactly the wrong thing to do. Additionally, eliminating last year’s tax relief would not solve the short-term deficit problem, but would raise taxes on low and middle-income workers. (“CBO Budget Update Confirms Fiscal Restraint,” The White House, August 2002)
President Bush Signed Trade Promotion Authority To Help Boost The Economy. The President proposed and signed “Trade Promotion Authority legislation to help create new American jobs and boost our economy by opening foreign markets to U.S. products and services.” (“A Record Of Accomplishment For The American People,” The White House, August 3, 2002)
Senator Lieberman Admitted That President Bush Cannot Be Blamed For The Economic Slowdown. “I’d say that you obviously cannot blame President Bush for the slowdown in the economy.” (Senator Lieberman, CNN’s “Late Edition With Wolf Blitzer,” March 18, 2001)
CNN’s Wolf Blitzer Acknowledged That The Economic Slowdown Began During The Clinton Administration. “[W]e know that the stock markets began to slide much earlier last year when Bill Clinton was still president of the United States and the economic growth began to go down when Bill Clinton was still president of the United States.” (CNN’s “Late Edition With Wolf Blitzer,” March 18, 2001)
