President’s Fiscal Year 1998 Budget Leaves Problems Unresolved for Next Administration
Special Report No. 67
The Clinton Administration’s newly proposed fiscal year 1998 budget contains a plan that it claims will reduce the deficit next fiscal year and stem the flow of red ink by FY 2002. To accomplish this objective the Administration would slow the growth of federal expenditures over the next five years, particularly those for Medicare. On the revenue side of the ledger, the Clinton plan contains a set of very modest provisions that it says will cut selected taxes by $98.4 billion over the next five years. These losses in revenue are more than made up for by other provisions of the plan which would raise a host of other taxes and fees by $123.3 billion over that period. The plan also assumes that continued economic growth will produce levels of federal receipts which are high by historical standards.