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Publication Date: June 2007
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Richard Kogan
Research Area: Banking and finance
Keywords: Economic projections; Fiscal future; Federal budget
Type: Report
Abstract:
The bulk of the allegedly irresponsible increase in funding for appropriated programs reflects the President’s own request for additional military and security funding. The increase that congressional leaders plan for domestic discretionary programs is quite small. The notion that this modest domestic increase of $5 billion, which follows several years of cuts in these programs, could have a noticeable effect on the $14 trillion U.S. economy is not credible. Nor is the claim that funding for domestic discretionary programs would put significant pressure on the deficit and force a tax increase, since these programs would grow less rapidly than either the economy or tax revenues.