Gannett News Service

Bush budget stresses security, tax cuts

President plans to run deficits through 2004

WARREN VIETH, LOS ANGELES TIMES

Originally published Tuesday, February 5, 2002

WASHINGTON -- President Bush submitted a $2.13 trillion budget Monday that sets aside debt reduction and squeezes domestic programs to finance homeland security, the war on terrorism and another round of big tax cuts.

Bush's budget for fiscal year 2003 asks Congress for new tax cuts worth $590 billion and defense spending increases totaling $550 billion during the next 10 years.

He would accomplish those objectives by forgoing balanced budgets for at least three years and abandoning last year's pledge to reserve Social Security surpluses to pay off the national debt.

"The budget for 2003 is much more than a tabulation of numbers," Bush said in his budget message. "It is a plan to fight a war we did not seek."

The president must battle lawmakers, lobbyists and constituents whose budget priorities differ from his. The first shots were fired immediately, with critics accusing Bush of endangering Social Security by pressing for spending and tax cuts.

"This budget allocates funds to buy bombs, guns and aircraft to help fight the war on terrorism, but it puts the financial security of millions of Americans in jeopardy," said Rep. Charles B. Rangel, D-N.Y.

Bush's second budget reflects a reordering of fiscal priorities in response to the attacks and the deepening recession. A year ago, the White House said the federal government would accumulate a $5.6 trillion surplus over 10 years. Bush's budget slashes the 10-year surplus estimate to $1 trillion. Taking Social Security surpluses off the table would produce a $1.5-trillion shortfall.

Deficits that Bush projected are relatively new. He estimated the government would end this year $106 billion in the hole, the first deficit since 1997. The shortfall would shrink to $80 billion next year and $14 billion in 2004, with surpluses projected from that point forward.

The Olympian Copyright 2002

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