The US Senate on Wednesday passed a budget for the fiscal year starting October 1 that would eliminate deficits by 2012 but puts off tough decisions on taxes and controlling the growing costs of health and retirement benefits for the elderly.
Over Republican objections, the Democratic-led Senate voted 48-45 for the nonbinding, $3 trillion fiscal 2009 budget that sketches out spending priorities for the next several years. Senator Barack Obama of Illinois, who has claimed the Democratic Party's presidential nomination, voted for the budget that could guide some of his economic decisions next year if he is elected president.
The House of Representatives also was expected to pass the measure this week - the first time since 2000 that Congress managed to approve a budget blueprint in an election year. Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, said the budget "will strengthen the economy and create jobs."
"It will provide tax cuts for the middle class and it will restore fiscal responsibility by balancing the books by 2012 and maintaining balance in 2013," Conrad added.
Besides setting broad goals for federal spending and taxes, the budget also would allow the government to borrow more to service its debt. Its borrowing authority would rise to $10.615 trillion, from the current ceiling of $9.815 trillion.
White House Budget Director Jim Nussle accused Democrats of "repeating last year's tax and spend game plan," while Republicans in Congress also attacked the document. "With rising gas prices and economic concerns, Congress needs to lower taxes on working Americans and job creators and rein in wasteful Washington spending," Senate Minority Leader Mitch McConnell of Kentucky said. He complained the budget "sets a new spending record."
Comments
Comments are closed.