The Bush Agenda

January 18, 2005

They say it can't be done. The budget deficit is soaring. Congress will never have the discipline to control spending. Social Security reform with personal saving accounts is a pipe dream.

Can President Bush win support for his ambitious agenda? At this point we don't know, but I wouldn't bet against him. He has always been underestimated. I recall President Reagan pushing through unbelievable tax cuts in 1981. The top tax rate when President Reagan was elected was 70 percent. After that first year in office the rate was cut to 50 percent. His budget plan was to cut 100 billion dollars. I can still hear the wailing and gnashing of teeth from liberals that couldn't believe it.

Our economy today is growing at 4% or better. 21/2 million jobs were created last year. Since October, federal cash outlays have grown by 6.1 percent while the tax collection has gown by 1012 percent. When more money comes in than goes out, the deficit shrinks. It's shrinking. When President Bush announces his budget for next year, he just might call for zero increases in spending (excluding defense and homeland security.) He will propose to eliminate dozens of federal programs. Ag programs will be frozen along with veterans and science. Such spending discipline is the medicine he will

prescribe.

Social Security reform has been called the 3rd rail of politics, but a wide-majority of young Americans want personal saving accounts. His tax reform package will certainly call for the elimination of the death tax. What will be accomplished, we don't know, but it is going to be an exciting ride.

Until next week, I am Jack Block from Washington.