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House passes, sends Bush $39 bln spending cuts
Reuters ^ | 2-1-06 | Richard Cowan

Posted on 02/01/2006 6:16:35 PM PST by Indy Pendance

WASHINGTON (Reuters) - Republicans in the House of Representatives narrowly won passage on Wednesday of a controversial bill to trim about $39 billion from domestic spending over five years, capping a yearlong push to cut health care for the poor and elderly and other programs.

By a partisan vote of 216-214, the House approved the bill, sending it to President Bush for signing into law.

Bush said in a statement he was eager to sign the measure and that he would propose further "spending restraint" in the fiscal 2007 budget he will unveil on Monday.

The bill, approved in the Senate in December after Vice President Dick Cheney cast a rare tiebreaking vote, was approved by the House late last year. A small change made by the Senate forced another House vote.

The spending cuts are a high priority of conservative Republicans who want to continue cutting taxes amid huge budget deficits, which could top $400 billion this year.

"Today we can begin the process of controlling out-of- control government spending," said Rep. Jeb Hensarling (news, bio, voting record) of Texas, a conservative Republican.

Referring to $70 billion in proposed Republican tax cuts, Rep. Steny Hoyer (news, bio, voting record), a Maryland Democrat, said, "You don't have to be much beyond sixth grade to know that's going to add to your deficits" when offset by only $39 billion in spending cuts.

The Senate on Wednesday began debating a $70 billion tax-cut measure that would extend alternative minimum tax relief through 2006, ensuring that millions of middle-class families will not end up paying the tax that originally was intended for the very wealthy.

Besides the debate over whether the "Deficit Reduction Act" would actually live up to its name, lawmakers argued over how the spending cuts were being carried out.

Republicans said the reductions would begin to rein in "entitlement" programs that will account for a growing part of federal spending as the baby-boom generation qualifies for government health benefits.

"These programs need our reform," said House Budget Committee Chairman Jim Nussle, an Iowa Republican, who said the spending cuts would force improvements.

Democrats blasted provisions to save about $8 billion over 10 years by cutting federal enforcement of child-support payments and saving billions by allowing college student loan costs to rise.

MEDICAID CUTS

The nonpartisan Congressional Budget Office said this week that cuts to Medicaid spending would affect 13 million poor people, 20 percent of the program's participants. Many of those would be children, the CBO said.

The savings would include higher out-of-pocket costs for prescription drugs and other medical care for the poor.

Lonny Lefever, 53, who lives in the small town of Rosewood in western Ohio, is a Medicaid participant diagnosed as HIV-positive in 1995.

Lefever told Reuters in a telephone interview that higher co-payments on the $1,800 in life-saving prescription drugs he takes each month would erode his only source of income, Social Security disability payments.

Asked how he would cope with higher out-of-pocket costs, Lefever said: "I'll be honest with you. My thought would be to get it (money for prescription drugs) any way I could. But I don't want to go to jail." He added: "I would just hope I'd last until we got some other responsible government in position to change these laws. It's scary."

Besides slowing the growth in many domestic programs, the legislation has a wide impact on U.S. policies.

It would change some banking regulations and increase the premiums companies would pay to the federal pension insurer, the Pension Benefit Guarantee Corporation.

It also would end a U.S. trade law, declared illegal by the World Trade Organization, that let the government distribute duties it collects on foreign goods to American companies.

The bill also sets February 17, 2009, as the deadline when television stations must switch to airing only new digital broadcasts. It provides up to $1.5 billion to help some consumers buy converter boxes so existing televisions do not go dark after the transition.


TOPICS: Government; News/Current Events
KEYWORDS: 109th; 2006agenda; budgetcuts; bush43; dropinthebucket; federalspending
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1 posted on 02/01/2006 6:16:36 PM PST by Indy Pendance
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We could save even more if we stopped sending $ to countries like Egypt.


2 posted on 02/01/2006 6:21:14 PM PST by oolatec
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To: Indy Pendance
Bush said in a statement he was eager to sign the measure and that he would propose further "spending restraint" in the fiscal 2007 budget he will unveil on Monday.

I'm withholding my excitement until I actually see "cuts". I honestly don't believe it.
3 posted on 02/01/2006 6:21:48 PM PST by jaredt112
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To: Indy Pendance
capping a yearlong push to cut health care for the poor and elderly and other programs.

I can safely skip the rest of this one I guess...

4 posted on 02/01/2006 6:21:54 PM PST by Darkwolf377 (http://www.welovetheiraqiinformationminister.com/#quotes)
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To: Indy Pendance

Thanks for the thread INDY!!!


5 posted on 02/01/2006 6:23:03 PM PST by Txsleuth
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To: Indy Pendance
These "cuts" are very, very modest. In fact, they are not really cuts, but reductions in growth. More importantly, these cuts are minor compared to what we will need to do in 5-10 years when boomers are retired and making claims. We need reform. I say the Medicare and Medicaid need more co-payments or deductibles, perhaps even going to catastrophic coverage.
6 posted on 02/01/2006 6:23:20 PM PST by GeorgefromGeorgia
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To: Txsleuth

You're welcome!


7 posted on 02/01/2006 6:24:04 PM PST by Indy Pendance
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To: oolatec

I think we freepers could find a LOT of places to cut spending from...but, unfortunately, they don't ask us...


8 posted on 02/01/2006 6:24:10 PM PST by Txsleuth
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To: GeorgefromGeorgia

OK, let's have a Gore or Kerry presidency and see what happens.


9 posted on 02/01/2006 6:25:38 PM PST by Indy Pendance
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To: Darkwolf377
Remember when Rooters and AP used to try to be subtle? Their stuff is so over-the-top anymore, it reads like The Onion.
10 posted on 02/01/2006 6:25:45 PM PST by WhistlingPastTheGraveyard (Hindsight is not wisdom.)
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To: Indy Pendance

Roll call vote- 13 Repubs against, no Dems voting aye.

http://clerk.house.gov/evs/2006/roll004.xml


11 posted on 02/01/2006 6:27:09 PM PST by buckeyenation
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To: GeorgefromGeorgia

My point is, we've had for too long liberal control. Now, we're taking baby steps, learning to walk. If we keep the momentium, we'll be running in a few short terms.


12 posted on 02/01/2006 6:27:12 PM PST by Indy Pendance
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To: Indy Pendance

Who'll buy the poor medicines!!! If we don't fund everything everyone will die! OMG!


13 posted on 02/01/2006 6:28:57 PM PST by Bogey78O (<thinking of new tagline>)
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To: WhistlingPastTheGraveyard

Liberals are desperate.


14 posted on 02/01/2006 6:29:23 PM PST by Indy Pendance
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To: Indy Pendance
Referring to $70 billion in proposed Republican tax cuts, Rep. Steny Hoyer, a Maryland Democrat, said, "You don't have to be much beyond sixth grade to know that's going to add to your deficits" when offset by only $39 billion in spending cuts.

There's another one of those dimwit Democrats who have never learned the concept of dynamic scoring.

15 posted on 02/01/2006 6:30:53 PM PST by Ronaldus Magnus Reagan
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To: GeorgefromGeorgia
These "cuts" are very, very modest.

True, yet every single liberal will scream bloody murder over how this hurts "The Poor". Of course none of them will open their pockets to charity.
16 posted on 02/01/2006 6:31:15 PM PST by proud_yank (I CAN'T RUN MY SUV ON PELOSI'S HOT AIR)
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To: Indy Pendance

Gore or Kerry would cut the Military drastically, especially some of our high tech weaponry. Kerry voted against most of our current high tech weapons systems. Good bye new subs, carriers, airframes reduced, etc. Also, they would raise taxes big time.


17 posted on 02/01/2006 6:33:09 PM PST by GeorgefromGeorgia
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To: buckeyenation

We have a long way to go. What we need to do is remove the rinos from our states, so get going!


18 posted on 02/01/2006 6:35:48 PM PST by Indy Pendance
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To: Indy Pendance
...controversial bill to trim about $39 billion from domestic spending over five years,

Eight billion buck a year cut from an annual budget of $2 Trillion (with a t) and it's controversial? The Department of Education loses that much a year all by itself.

19 posted on 02/01/2006 6:44:25 PM PST by hattend
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To: hattend

It's small change, but where do we start? Other than electing me dicatator, I just don't what else is good. A billion here, a billion there....


20 posted on 02/01/2006 6:49:32 PM PST by Indy Pendance
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