Washington -- In an effort to slash the federal deficit in half by 2007, the Senate Budget Committee last week unveiled a resolution that seeks to cut some $7 billion from defense spending, to shave roughly $16 billion from domestic spending and reduce a slew of current entitlement programs.

The proposal also would allow for an additional $144 billion in tax cuts over the ensuing five years and would grant reconciliation protection to three tax cuts totaling $80.6 billion, set to expire at the end of 2004.

The Senate blueprint seeks to trim the 2007 budget deficit -- projected at $477 billion -- to $224 billion, and to $202 billion by 2009. By contrast, the Bush budget numbers would incur a deficit $114 billion higher over the same time period.

The Senate budget would assume a five-year cost of $22.7 billion for permanent extensions of expiring provisions of the 2001 and 2003 tax cuts. Senate Budget Committee Chairman Don Nickles, R-Okla., called the resolution "a real, positive, transparent, defensible budget."

President Bush has promised to halve the 2004 budget shortfall within five years. However, a recent analysis by the Congressional Budget Office said the Bush plan would not meet those projections.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access