1. An Overview
  2. Highlights
  3. Reaching Balance in 2005
  4. A Serious Step Toward Health Care Reform
  5. Rewarding Work and Responsibility
  6. Reforming Entitlement Spending
  7. Investing in Education and Training
  8. Protecting the Environment
  9. Controlling Violent Crime
  10. Strengthening Our Commitment to Science and Technology
  11. Targeting Tax Relief to Middle-Income Americans

An Overview

The President today proposed a bold plan to balance the budget by 2005, cut taxes for middle-income Americans, and continue investing in education and training -- all to raise average living standards.

The President's plan provides a sharp contrast between his policies and those of the Republicans. The President wants to balance the budget over a reasonable period of time -- 10 years -- so he can protect Medicare, and invest in education and training and other priorities for the American people. Because Republicans balance the budget more quickly, and also provide a huge tax cut for the wealthy, they have to slash Medicare and Medicaid and cut education.

The President would balance the budget the right way, by eliminating wasteful spending, streamlining programs, and ending unneeded subsidies; taking the first, serious steps toward health care reform; reforming welfare to reward work; cutting non-defense discretionary spending that doesn't include the President's investments by 22 percent in real terms, while leaving room to provide increases for education, the environment, and anti- crime efforts; and targeting tax relief to middle-income Americans.

Republicans would balance the budget the wrong way: To reach balance in 7 years and provide a huge tax break for the wealthy, they would slash Medicare and Medicaid and cut deeply in education and other investments that help raise average living standards.

The President's plan builds upon the policies of his first 2-1/2 years that cut the deficit, created nearly 7 million jobs, controlled interest rates and inflation, expanded trade to create more high-wage jobs, and rewarded work by cutting taxes for 15 million families. The President is also building on his efforts to create a new kind of government, one that creates opportunity, not bureaucracy, and provides the tools that average Americans need to build better lives for themselves and their families.

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  1. Reach Target by 2005
  2. Year-by-Year Savings
  3. A Comparison of Deficit Reduction Plans

Graph: Balancing the Budget
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