Bush Budget and Tax Cuts Spell Disaster

April 9, 2003

Statement of National Organization for Women President Kim Gandy

In the midst of war and harsh economic times, the proposed budget and tax cuts for the coming fiscal year are nothing short of disastrous. The House and Senate budget resolutions include billions in tax cuts that overwhelmingly benefit the wealthiest families while shortchanging healthcare, education, social services, and homeland defense—the wrong choices.

Congress has just approved $80 billion for the war effort, but many economists, government officials, and military analysts expect this number to rise, especially during post-war reconstruction of Iraq. Bush's budget proposal and the House-passed version included no funding for this effort, so the $80 billion and any future spending will require significant cuts to critical services and an ever-increasing federal deficit.

Meanwhile, states are facing severe budget crises and have already had to make cuts and scale back vital social services for low-income residents. A federal budget resolution that has huge tax cuts and significant cuts to program that serve low-income families, children and seniors will worsen budget crises in the states. Providing even more money through tax cuts to millionaires in light of these state cuts is irresponsible and reprehensible.

Waiting lists for childcare are growing in Florida, Indiana, and Texas because states do not have enough money to serve all eligible children. Temporary Assistance to Needy Families programs have been cut in Arizona, Indiana, Massachusetts, Tennessee, and Washington state. Nine states cut Medicaid benefit packages in 2002, and 25 states plan additional cuts. Oregon will cut 24 days out of its school year. Some schools are closing, causing an increase in class size. Elementary education funding has been cut in Idaho, Illinois, Indiana, Kansas, Massachusetts, Washington, and other states—meaning low-income children in those states will be at a disadvantage right from the start. Nineteen states have cut higher education spending.

George Bush's determination to wage war in Iraq while giving enormous tax breaks to the wealthy will have the combined effect of starving critical programs and leaving a trail of disaster in the states. The Congress must stop him.

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