A Fool and his Money: Bush Proposes $3.1 trillion budget

President Bush proposed a $3.1 trillion budget on Monday that largely increases military spending and protects his signature tax cuts. While this record high budget for a 12-month period considerably helps national security programs, it is little surprise that other programs did not receive as much love. Bush predicts that this budget will push deficits to near record levels, hitting $410 billion this year and $407 in 2009. If this proposed budget is going to send us spiraling even farther into debt, let’s check out what programs are winning and which programs are losing.

  • Military Spending: While the Pentagon would get a $35 billion increase to $515 billion (a 7 percent increase), misleading additions actually put military spending at $713.1 billion.
  • Medicare and Medicaid: Hope you didn’t care for your health that much. The two programs will suffer from over $200 billion in cuts over the next five years.
  • Health: Your health doesn’t matter if we let the terrorists win. Health and Human Services Department funding will be cut by $2 billion (a 3 percent decrease).
  • Homeland Security: The budget for homeland security will increase by nearly 11 percent.

At $515 billion, the Pentagon budget, not including either war we’re currently engaged in, is roughly equal to the total military budgets of all the rest of the world’s nations combined. Fred Kaplan has a great article over at Slate breaking down the hidden costs that really bump military spending up to $713.1 billion.

The takeaway from all of this is that in his final budget ever, Bush has proposed a record high budget that would significantly increase military spending while reducing spending on other programs (like health). This budget would cause two of the worst deficits in United States history for 2008 and 2009.

Bush sends Congress $3.1 trillion budget – [CNN]

Breaking down the U.S. military budget – [Slate]

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