News Release

September 12, 2003

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Cato Details $87 Billion in Cuts to Offset Iraq Costs
President should focus on spending cuts, not continual increases

WASHINGTON -- President Bush has asked Congress for an added $87 billion for operations in Iraq. Unfortunately, the request continues the fiscally irresponsible pattern set by the Bush White House: Requesting spending increases, but rarely asking for cuts or even spending reductions to offset proposed increases.

Whether or not still more taxpayer money should be spent in Iraq, Chris Edwards, Cato's director of fiscal policy, is urging the administration to come forward with substantial spending cuts to get the spiraling budget deficit under control. Cato scholars have compiled a detailed list of $87 billion in cuts that would offset Iraq costs and produce long-term savings (table below). These cuts would be permanent, and thus would not only save $87 billion in FY2004, but would save about $1 trillion over the next decade in total.

Cato Fiscal Policy Analyst Veronique de Rugy noted: "The Bush administration should focus on cutting corporate welfare, such as subsidies to the energy industry and wealthy farmers. Also, many government activities such as air traffic control should be privatized and space exploration left to private entrepreneurs."

Edwards observed: "President Bush needs to land the federal spending jet on the flight deck of fiscal responsibility. For example, federal Department of Education activities are properly local and private functions and should be ended. With the budget deep into the red, we simply cannot afford pork barrel programs, such as the $6 billion in Community Development Block Grants, and these should be terminated."

De Rugy concluded: "The bottom line is that there are many ways to find money for Iraq rather than pushing the deficit up even higher. This president needs to end his irresponsible spending binge."