Treasury Secretary John Snow told the House Budget Committee that the Bush administration's proposed budget is the result of a focus on priorities while looking for savings in every agency. "I think you'll find that it exhibits a dedication to fiscal discipline, transparency and economic growth," he said. "This administration appreciates that cutting taxes and exercising fiscal discipline must go hand in hand. We appreciate that this is the people's money with which we are dealing, and that we work for the taxpayers." Snow acknowledged that, in the short run, tax cuts might have a negative impact on budgets and deficits. However, he said, growth, rather than higher taxes, is the answer. "Treasury receipts are rising in the second half of calendar 2004, individual income tax revenue is up 10.5 percent versus the same period in 2003, and will continue to rise as long as we have economic growth," he said. "Let me be very clear on this: We have deficits and they are unwelcome. But we are not under-taxed and higher taxes will not be the solution to reducing deficits. Fiscal discipline, combined with economic growth, is the correct path."

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