HIDDEN SACRIFICE: Analysis Discovers Big Cuts Ahead for Iowa in Bush Budget
Iowa Fiscal Partnership
Behind the curtains of George W. Bush’s five-year plans for domestic
services are substantial cuts to Iowans. These were not evident from
the widely circulated budget plans for 2007; unlike traditional
practice, the administration did not release its five-year numbers.
Thanks to the Center on Budget and Policy Priorities, which obtained
and analyzed a less well-circulated administration computer run, a
glimpse of the Iowa impact is available. In the context of proposed tax
cuts, it illustrates the choices at stake.
TAX CUTS WOULD FORCE BIGGER DEFICITS DESPITE SPENDING CUTS
Overall, the budget would increase the federal deficit, both short term and long term.
The five-year plan would cut the domestic discretionary budget
(annually appropriated services outside defense and international
affairs) by $183 billion below 2006 funding, adjusted for inflation. Of
those cuts, $167 billion would occur after 2007. By 2011, this spending
would be about $57 billion (13 percent) below the amount needed to keep
pace with inflation.
The proposed cuts in domestic spending would not reduce the deficit in
the [Bush]’s plan; they are less than $285 billion in tax cuts
proposed by [Bush].
Tax cuts proposed by [Bush] would benefit high-income people;
several domestic spending cuts are in services for low-income people.
The [Bush]’s proposals, for example, would mean:
• 4,000 fewer Iowa participants would be served in
the special supplemental nutrition program for women, infants and
children (WIC) in 2011 than 2006.
• 3,400 fewer Iowa participants in the Commodity
Supplemental Food Program for the Elderly in 2007 than in 2006 (420,000
• 800 to as many as 1,100 fewer Head Start participants by 2011.
Combined with proposed spending increases in military and homeland
security spending, the deficit would be about $200 billion worse than
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