Thursday, May 18, 2006

House passes budget, but rejects Republican Study Committe's amendment

The House of Representatives passed a budget early this morning, coming in at $2.7 trillion, after a lot of arm twisting by Majority Leader Boehner; see Boehner issues threat and Meet the new Hammer, same as the old Hammer.

Unfortunately, the Republican Study Committe's balanced budget proposal (RSC FY2007 Budget, Budget Overview & Sample Program Terminations) was voted down (Hensarling amendment (A003), Roll no. 156) with a final count of 94 in favor, 331 against.

Key provisions in the amendment that were voted down by the faux, do-as-I-say-not-as-I-do fiscal conservatives:
  • Balance the federal budget by FY 2011, without increasing taxes extend the Presidents 2001 and 2003 tax cuts and provide AMT relief
  • Eliminate roughly 150 federal programs
  • Realize a $392 billion net deficit reduction over five years, while increasing defense and veterans spending and making no changes to Social Security
  • Call for $358 billion in reconciliation savings over five years, achieved in part by block granting Medicaid, SCHIP, and most federal education and job training programs, and capping the growth of Medicare at 5.4% annually
  • Significantly restructure the Departments of Commerce, Energy, and Education
  • Reduce foreign aid by $31 billion over five years
  • Allow drilling in ANWR
  • Repeal Davis-Bacon, and eliminates highway (SAFTEA-LU) earmarks
  • Repeal the Gephardt rule
  • Include reforms to emergency spending; and create Budget Protection Accounts to divert spending to deficit reduction and further tax relief.



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