White House Urges Action On 2005 Budget Plan

by Mike Godfrey, Tax-News.com, Washington

05 July 2004

The White House last Thursday signalled its growing impatience with Congress concerning the budget impasse, and urged lawmakers to pass a budget plan that extends President Bush’s tax cuts.

"One of the most important aspects as we move forward on the budget is to make sure that we do not raise taxes,” stated Bush administration spokesman Scott McClelland last week.

“Our economy is moving in the right direction because of the policies we put in place. And the last thing we need to do is raise taxes that would kill job growth and hurt our economy going forward," he urged.

Whilst the House of Representatives managed to pass a version of the budget resolution in May which effectively extends certain tax cuts by one year, deficit-wary Republicans continue to hold up passage of the Senate version unless tax cuts are offset by spending cuts and tax hikes elsewhere.

The Bush administration however has made it plain that by not extending the tax cuts, Congress would essentially be increasing taxation.

"Obviously, we'd prefer to have a budget resolution by now. But we will continue working closely with members of Congress on the president's highest priorities,” said Mr McClellan.

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