**GOP VS. DEMOCRATIC BUDGETS: A QUESTION OF PRIORITIES**

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                     **House GOP Budget**      **House Democratic Budget**

  **Includes deficit **NO.** The GOP budget    **YES.** [The deficit is
  reduction          [increases]{.underline}   lower than in the GOP
  measures.**        the projected deficit in  budget in each of the next
                     each of the next five     5 years]{.underline}. In
                     years -- adding an        addition, the Democratic
                     additional \$301 billion  budget gets to balance in 8
                     to projected deficits.    years.

  **Protects Social  **NO.** Spends every      **YES.** Balances the
  Security.**        penny of Social Security  budget in 8 years, thereby
                     surplus over next 5       restoring the bipartisan
                     years, and if President's promise to protect the
                     tax policies are adopted, Social Security surplus and
                     over the next 10 years as end the raid on Social
                     well.                     Security.

  **Calls for        **NO.** A related GOP     **YES.** Includes language
  meaningful         bill applies              stating that PAY-AS-YOU-GO
  PAY-AS-YOU-GO.**   PAY-AS-YOU-GO             requirements must apply to
                     requirements only to      both mandatory spending
                     mandatory spending        increases [and]{.underline}
                     increases and             tax cuts.
                     [not]{.underline} to tax  
                     cuts, undermining fiscal  
                     discipline. Nothing in    
                     this bill.                

  **Targets tax cuts **NO.** Provides billions **YES.** Extends the tax
  to the middle      in tax cuts for the very  cuts targeted to the middle
  class.**           wealthiest taxpayers,     class -- the \$1,000 child
                     including billions for    tax credit, marriage
                     extending the dividend    penalty relief, and the 10%
                     and capital gains tax     tax bracket. Scales back
                     cuts.                     [only]{.underline} tax cuts
                                               going to the very
                                               wealthiest taxpayers.

  **Creates jobs and **NO.** Creates large,    **YES.** Focuses tax cuts
  economic growth.** long-term deficits that   on middle class families;
                     will                      calls for a manufacturing
                     [undermine]{.underline}   tax credit to create good
                     economic growth; does     jobs here at home; and
                     nothing to end incentives extends unemployment
                     for shipping jobs         insurance for millions of
                     overseas; and fails to    long-term unemployed.
                     extend unemployment       
                     insurance.                

  **Includes         **NO.** Like the Bush     **YES.** Targets \$2
  provisions         budget, cuts benefits to  billion in Fiscal 2005 to
  targeted to better widows of military        support our troops, by
  supporting our     retirees, limits          restoring benefits to
  troops.**          improvements to military  families of military
                     housing, and discontinues retirees, continuing the
                     last year's TRICARE for   military housing
                     reservists.               privatization initiative,
                                               and continuing TRICARE for
                                               reservists.

  **Provides key new **NO.** Bush budget cut   **YES.** Includes \$5.9
  homeland security  first responders by \$648 billion more than the GOP
  investments.**     million and port security budget over the next 5
                     grants by \$63 million.   years for additional
                     GOP budget is even worse  investments in such
                     \-- cutting Bush budget   priorities as first
                     by another \$155 million  responders, port security,
                     in Fiscal 2005.           aviation security, and
                                               border security.

  **Provides         **NO.** Falls \$1.3       **YES.** Includes the full
  adequate funding   billion short in Fiscal   \$2.5 billion increase over
  for veterans'      2005 of the amount the    Bush budget in Fiscal 2005
  health care.**     Veterans' Affairs         that the Veterans' Affairs
                     Committee has stated is   Committee has stated is
                     critically needed.        critically needed.

  **Provides funding **NO.** Close to Bush     **YES.** Provides \$2.1
  for key education  budget, which underfunds  billion more in Fiscal 2005
  & training         No Child Left Behind by   and \$9.8 billion more over
  initiatives.**     27 percent, underfunds    the next 5 years for
                     special education by 18   education & training
                     percent, and freezes      programs than the GOP
                     maximum Pell Grant at     budget. Includes funding to
                     \$4,050.                  lower cost of student
                                               loans.

  **Provides         **NO.** Cuts funding in   **YES.** Provides \$1.1
  adequate funding   Fiscal 2005 for such      billion more in Fiscal 2005
  for health care.** programs as NIH, maternal and \$11.4 billion more
                     & child health, etc. by   over the next 5 years for
                     \$358 million below a     health care programs than
                     freeze at this year's     the GOP budget.
                     level.                    

  **Provides funding **NO.** Cuts funding for  **YES.** Provides \$2.2
  for key            environmental protection  billion more in Fiscal 2005
  environmental      programs over the next 5  and \$17.0 billion more
  protection         years by \$6.4 billion    over the next 5 years for
  initiatives.**     below a freeze at this    environmental protection
                     year's level.             programs than the GOP
                                               budget.
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Office of House Democratic Leader Nancy Pelosi, March 24, 2004