Republican "Main Street" Budget Principles
Republican Main Street Partnership Principles for FY 2005 Budget (3/4/2004)
Dealing with the current budgetary problems requires a multi-tiered approach that focuses not only on discretionary spending, but also mandatory spending as well. Additionally, structural reforms to the budget process must also be incorporated into any budget resolution.
The following is a list of principles around which Republican Main Street Partnership believes the FY 2005 Budget Resolution must be built.
1. Congress must hold the line on FY 2005 discretionary spending. Congress needs to review all categories of discretionary spending and potential cuts and/or freezes must be distributed equitably. Everything must be on the table.
2. Congress should improve upon the President's plan to reduce the budget deficit. The President has promised to cut the deficit in half in five years. Congress can and should do better.
3. Any Budget Resolution must include the reinstatement of PAYGO rules for both discretionary spending and tax cuts. PAYGO rules are vital to ensuring fiscal discipline.
4. Tax cuts should only be extended temporarily and limited to those that are due to expire in 2004. The marriage penalty, child tax credit and the 10% bracket provisions should be temporarily extended (e.g. two years) before they expire at the end of 2004. We simply can't afford permanent and across-the-board extensions at this time.
5. Congress must initiate an ongoing review of long-term federal spending. Every part of the discretionary budget needs to be examined and evaluated. Programs and projects that have outlived their usefulness or simply are no longer affordable given the current circumstances need to be identified and funding for them eliminated or greatly reduced.
6. The unfettered growth of federal entitlement programs must be addressed. Congress has to get serious about reforming mandatory spending programs to reflect the current and long-term demographic realities. We need a systematic review of entitlement programs under a BRAC-type of procedure.
Posted by Jeff Lemieux at March 10, 2004 10:28 AM
