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Concentrating on the Wrong Target: Bush Cuts Would Reduce Domestic Discretionary Spending, As A Share of GDP, To Its Lowest Level in 46 Years

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The Administration’s new budget has one main focus when it comes to reducing the deficit: domestic discretionary spending. This focus is disproportionate; the rise in domestic discretionary spending plays a bit part when it comes to telling the story of why the nation’s fiscal situation has worsened. Further, because such spending constitutes a minor part of the budget, even though the proposed cuts in this area will hit a range of programs sharply, the cuts will not dramatically improve the fiscal picture.