Maybe it is the Republicans we should pay attention to..
Fiscal Conservatives Challenge Bush
By Adam Entous
WASHINGTON (Reuters) - President Bush (news - web sites), who accuses his Democratic rival of keeping his budget plans secret, has yet to offer plans of his own for funding his campaign promises and cutting the deficit in half, fiscal conservatives said on Friday.
Bush is campaigning for a second term promising to overhaul the Social Security (news - web sites) retirement system and the U.S. tax code. He is pushing for more spending on job training and for expanding health care tax credits.
But Bush has yet to say how he will pay for it, even as he charges that his Democratic presidential rival, John Kerry (news - web sites), is hiding "details on how they would raise spending and lower the deficit" until after the Nov. 2 election.
Bush campaign spokesman Scott Stanzel said the White House would release some details about Bush's plans "in the coming weeks," and he insisted the new proposals would "not significantly impact our ability to cut the deficit in half in five years" from this year's projected record of $445 billion.
Bush aides estimated the cost of the president's new spending proposals at $74 billion over 10 years, but the figure excludes Social Security and tax code changes among others.
An analysis by the Kerry campaign put the cost at closer to $4.1 trillion over 10 years, including Social Security reform, health care tax credits, Bush's space initiative as well as the war in Iraq (news - web sites), which Bush leaves out of his budget estimates.
Kerry economic policy director Jason Furman said Bush would have to pay for his new programs by "borrowing money, which means we're all going to pay for it." Stanzel dismissed Kerry's estimates as "pure fiction."
CONSERVATIVES SKEPTICAL
But even fiscal conservatives, traditionally allied with the Republican White House, were skeptical of Bush's plans.
"While it's true that Kerry hasn't provided a detailed plan, neither has the president," said Heritage Foundation budget analyst Brian Riedl.
William Niskanen, chairman of the Cato Institute, said Bush's warnings about Kerry's spending plans were "inconsistent" with his own proposals. "There's no way to accomplish (Bush's) major new measures, including tax reform, without substantial increases in spending," Niskanen said.
Stephen Moore of the Club for Growth, a group that raises money for conservative political candidates, said Bush was not being "very forthright" about his plans. He called Bush's fiscal record "abysmal," adding that under both Bush and Kerry "fiscal responsibility takes the back seat."
This week congressional analysts warned the deficit will balloon to a cumulative $2.29 trillion over the next decade.
Bush's most ambitious proposal -- adding personal retirement accounts to Social Security -- may be the most costly up front. The estimated cost of diverting some payroll taxes to these private accounts ranges from $1 trillion to $2 trillion over 10 years, analysts say.
Bush's own economic advisers say tapping the bond markets to pay for private accounts could dramatically increase the federal debt for decades.
But the Bush campaign says Bush has yet to settle on a plan to reform the retirement system or on a means to finance it. "The only cost that is certain is the cost of inaction," said White House spokeswoman Claire Buchan.
Tax code changes are also a big unknown. Whether Bush seeks a flat tax or something less ambitious, White House officials insist any changes will be revenue neutral, meaning they will not undercut federal revenues.
But Riedl said the White House would have to broaden the tax base "to make up any revenue that would be lost." That could mean raising taxes on some by closing tax loopholes. Moore said that would be "very difficult" given the clout of business interests.
Democrats say Bush's tax credits for health care could cost $380 billion over 10 years. Fixing the alternative minimum tax before it affects growing numbers of middle-class Americans: $300 billion. Moon and Mars missions: another $250 billion.