Saturday, January 31, 2004

Scaling back some tax breaks

From the NY Times:

Administration officials said Mr. Bush would not insist on his earlier proposal to overhaul Medicaid, would not push for a big expansion of retirement savings accounts and would not back tax incentives for energy production that he supported last year.

In addition, they said, Mr. Bush will oppose extending a temporary tax break that greatly accelerates the rate at which businesses can depreciate new equipment. The tax provision was enacted in 2002 to stimulate the economy and manufacturers want to retain it. At the same time, the White House is gearing up to oppose Republican plans in Congress for highway spending that far exceed what Mr. Bush wants.

Bush has been friendly to big business (not a necessarily bad thing) but it's nice to see him scaling back the tax breaks. Cleary the budget deficit is getting quite large and is becoming a political, if not pragmatic, liability. I'm curious about the highway spending though. What was it that those certain members of Congress were proposing? Also, I'd rather see Bush pump money in to alternate energy production than drug testing for high school students or marriage counseling.


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