President Bush Offers Fiscal Year 2007 Budget
President George W. Bush offered his proposed budget for fiscal year 2007. For details, please visit http://www.whitehouse.gov/infocus/budget/2007/.
The submission of the President's proposed budget is an early part of a year-long process to determine the federal government's priorities for next fiscal year, which begins in October 2006. Congress will review the budget, hold hearings and solicit input, and then enact a budget resolution setting broad spending parameters. Next, Congress will begin work on the 10 annual appropriations bills that must be passed in order to fund so-called "discretionary spending." Discretionary spending, which currently constitutes less than half of the federal budget, ranges from defense and homeland security to certain health and education programs. Finally, Congress may-but does not have to-consider legislation that addresses the funding formulas for programs like Social Security, Medicare, and Medicaid. These "mandatory spending" programs increase by formula every year and automatically receive funding without an act of Congress.
"I plan on examining each appropriations or other budget bill that comes before the House with due consideration to both the need for fiscal restraint, which is important to growth in the economy, and the adoption of proper priorities," Congressman Platts stated. "These priorities should include protecting America, honoring our veterans, funding education, and ensuring access to health care."
U.S. Economy Strong in 2005, Revenues Grow
The overall U.S. economy performed strongly in 2005, despite continuing high energy prices and the shock in the third quarter caused by Hurricane Katrina. Gross Domestic Product (GDP) increased by 3.5%, according to the U.S. Bureau of Economic Analysis. The unemployment rate averaged 5.1% throughout 2005 and stood at 4.7% as of January 2006. These numbers compare favorably with U.S. economic performance in the last few decades and particularly well with Europe.
The strong performance of the American economy also resulted in a rapid increase in federal revenue. Specifically, according to the non-partisan Congressional Budget Office (CBO), federal revenues increased by $274 billion between the end of 2004 and the end of 2005, from a total of $1.88 trillion to a total of $2.154 trillion. This amounts to a 14.5% increase in federal revenues. The final amount is nearly $100 billion more than was originally projected.
"A strong economy is the most important factor in reducing the deficit," Congressman Platts noted. He added that, despite job gains in the overall economy, many manufacturers continue to struggle under high energy and health care costs as well as illegal Chinese trade practices.
Web Page Highlights (www.house.gov/platts)
Winter 2006 Newsletter
The most recent "Congressional Update" newsletter from Congressman Platts may be found in the "Quick Links" box of his web site.
(http://www.house.gov/platts/index.shtml)
Congress Passes the Deficit Reduction Act
Congressman Platts explains his vote for the Deficit Reduction Act, which would slow the growth in mandatory spending programs for the first time since 1997.
(http://www.house.gov/apps/list/hearing/pa19_platts/deficitreduction.html)
Congressman Platts Announces Academy Nominations from the 19th District
Twenty-seven area students received nominations for the U.S. Military Academy, the U.S. Naval Academy, the U.S. Air Force Academy, and the U.S. Merchant Marine Academy. A list of the students can be found on the web site.
(http://www.house.gov/apps/list/press/pa19_platts/academy.html)
Congressman Platts' Reaction to the State of the Union
Congressman Platts' statement in response to President George W. Bush's January 31 State of the Union speech can be found here.
(http://www.house.gov/apps/list/speech/pa19_platts/SOTU2006.html)
Need Assistance with Your Tax Return?
The IRS Volunteer Income Tax Assistance (VITA) Program and the Tax Counseling for the Elderly (TCE) Program offer free tax help if you qualify. An explanation of the program can be found here.
(http://www.house.gov/platts/casework/taxes-02.shtml)
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