Reforms To Spend Tax Dollars Wisely

      2007 State of the Union Policy Initiatives
      In Focus: Budget Management
     

Tonight, President Bush Will Discuss Three Major Reforms To Spend Tax Dollars Wisely And Keep America's Economy Strong. Next week, the President will deliver a full report on the state of our economy, which has added more than 7.2 million jobs since August 2003. Americans are finding jobs and taking home more pay.

To Spend Tax Dollars Wisely, We Must:

• Balance The Budget Through Pro-Growth Policies And Spending Restraint.

• Enact Common-Sense Reforms To Help Prevent Billions Of Taxpayer Dollars From Being Spent On Unnecessary Earmarks.
  

• Reform Entitlement Programs To Address The Longer-Term Fiscal Challenge Facing Our Country.

Balancing The Budget Through Pro-Growth Policies And Spending Restraint

Earlier This Month, The President Announced He Will Propose A Balanced Budget. On February 5, the Administration will present its five-year budget proposal. The President's budget will reduce the deficit over the next five years and produce a balanced budget by 2012. The Budget will achieve balance while addressing the Nation's most critical needs, including support for the Global War on Terror and sustaining the strength of our economy through permanent tax relief.

• The President's Tax Relief Has Spurred Robust Economic Growth, Millions Of Jobs, And Rising Wages.

• A Strong U.S. Economy Is Fueling Higher Tax Revenues. Tax revenues rose 11.8 percent in 2006 following a 14.6 percent increase in 2005. Receipts have increased nearly 35 percent since the tax relief was fully implemented in 2003, and 70 percent of the reduction in the deficit last year was attributable to increased tax revenues.

• The Deficit Has Been Cut In Half Three Years Ahead Of The President's 2009 Goal. Historic revenue growth and a continued commitment to spending restraint contributed to this reduction.

• Better Spending Restraint Is Necessary To Help Achieve A Balanced Budget. While funding the Nation's priorities, we must keep spending under control. That means restraining spending growth, doing more with less, and eliminating programs that are not getting the job done.

Enacting Common-Sense Reforms To Help Prevent Billions Of Taxpayer Dollars From Being Spent On Unnecessary Earmarks

Earmark Reform Will Help Eliminate Wasteful Spending. Earmarks are provisions included in legislation that are often not subject to legislative or public scrutiny and that often lead to wasteful Federal spending. Earmarks have tripled in number over the last decade and have increased spending by billions of dollars. The President applauds Congress' progress in requiring the disclosure of the sponsors, costs, recipients, and justification for each earmark, and calls on Congress to go further by enacting comprehensive earmark reform that brings greater transparency and accountability to the Congressional budget process, including:

• Stopping the practice of concealing earmarks in so-called report language instead of placing them in the actual language of the bill.

• Cutting the number and cost of all earmarks at least in half by the end of this session.

Reforming Entitlement Programs To Address The Longer-Term Fiscal Challenge Facing Our Country

The President Believes Balancing The Budget Through Pro-Growth Economic Policies And Spending Restraint Better Positions Us To Tackle The Longer-Term Fiscal Challenge Facing Our Country: Reforming Entitlements. Reforming Social Security, Medicare, and Medicaid will enable future generations to benefit from these vital programs without bankrupting our country. The President has led the way in focusing attention on this problem and in promoting real solutions, and passing legislation to enact such reforms will require bipartisan cooperation.