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White House Issues Tepid Response To House Budget Plan

by Leroy Baker, Tax-News.com, New York

21 May 2004

The Bush administration has given an unenthusiastic response to the 2005 budget plan passed by the House on Wednesday extending certain tax relief measures by just one year.

Whilst the President had hoped to see expiring tax cuts legislated in 2001 and 2003 made permanent in the 2005 budget, deficit-wary Republicans have insisted that measures are put in place to ensure that tax cuts do not add to the budget gap, and the House-approved version of the plan extends by just one year three popular tax relief measures.

Commenting on the result, White House spokesman Scott McClellan was careful not to openly criticize or praise the budget measures.

"The president believes those tax cuts should be made permanent," he stated, adding:

“And he has said at a minimum this Congress should not raise taxes on the American people."

The House budget passed on a tight 216-213 vote. However, unfortunately for the President, it appears likely that the Senate will defeat the measures.

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