President Proposes Record Spending In 2001 Budget
Dateline: 02/07/2000
Record Spending...
President Clinton's fiscal year 2001 Federal Budget proposal to be sent to
Congress today proposes a record spending request level of $1.83 trillion
dollars. However, the White House points out that the proposed spending
represents the smallest share of the total US economy since 1966 and can be
drawn from a large and growing budget surplus.
From Record Surpluses...
The President's budget assumes the availability of a record $179 billion surplus
in 2001 including $160 billion from the Social Security system to be applied
toward paying off the national debt by 2013. This is the third consecutive
annual budget surplus to be available and Clinton Administration estimates push
total surpluses to $2.9 trillion over the next 10 years.
To Trigger Record Battles
Not even the Administration expects Congress to approve the President's
proposed 2001 budget either as is, or any time soon. Instead, look for a repeat
round of last year's battles between Congressional Republicans and Democrats
over how to use the surpluses while protecting the future of the Social Security
program. Republicans have already indicated they would push for larger tax cuts
and less government spending than the President proposes.
Some 2001 Budget Proposal Highlights
The President's 2001 budget calls for the largest expansion in the scope of
federal health care since the 1960's.
- Health care insurance would be provided to at least five million of the estimated 44 million people currently without coverage.
- The Medicare system would be amended to extend prescription drug payments to persons aged 55 to 65.
On Taxes -- the President's proposed budget offers $351 billion in tax cuts to low and middle-income individuals, but also proposes $96 billion in tax increases, including the closing of certain corporate tax loopholes. A few highlights of cuts and increases include:
- Tax breaks to assist families in paying college fees and the cost of long-term care for sick relatives.
- Lessen the impact of the "marriage penalty" in the tax code that can penalize married couples.
- Expand the Earned Income Tax Credit program to include 6.4 million more low-income families.
- Increase the Federal tax on cigarettes by 25 cents per pack.
- Fine tobacco companies $3,000 for each underage (under 18) smoker.
(Classified as "health policy" rather than a tax increase.)
[More on the cigarette tax and fine]
Reference Resources:
FY 2001 Budget Summary Documents
Complete text of the President's Budget Summary published 2/7/2000 by the White House.Briefing by the White House Staff on the 2001 Budget
Text of the presentation by Gene Sperling, Director of National Economic Council; Martin Bailey, Chair of the Council of Economic Advisors; Larry Summers, Treasury Secretary; and Jack Lew, Director of OMB.Remarks by the President on the FY 2001 Budget
Text of the President's address at Presidential Hall on 2/7/2000.The Federal Budget Process
Preparing and approving America's budget is one of the most important and difficult jobs of the President and Congress. How does it all come together? From your About.com Guide.Clinton - Raise Cigarette Tax / Impose Fines
More details on the President's proposed cigarette tax increase and tobacco industry fines related to underage smoking. From your About.com Guide.
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