Large Tax Cuts But Little Else: Administration Proposes Tax Cuts that Cost Vastly More Than Other Domestic Initiatives Combined

Publication Date: January 2004

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Richard Kogan; David Kamin

Research Area: Banking and finance

Keywords: Tax code; Economic projections; Federal budget; Fiscal future

Type: Report

Abstract:

In recent weeks, the Administration has devoted much talk to new domestic spending initiatives. In his State of the Union address, the President lauded the benefits of new funding for education, anti-drug, and prisoner re-entry programs. The actual amount of resources proposed for these initiatives, however, is very small. Altogether, resources for the Administration’s domestic program initiatives, as either proposed in the State of the Union address or reported by the media in recent weeks, constitute about three percent of the cost just of making the tax cuts permanent.