by Farrah Balanced

The Bush administration released its 2006 budget on Friday. The 2010 deficit fell from a baseline of $317 billion to $153 billion, but at the expense of permanent tax cuts and funding for many programs.

The bulk of the cuts came from mandatory spending, including Medicare and Social Security. The administration adopted every possible cut to the Social Security program, including reducing the cost of living adjustment and spousal benefits as well as raising the retirement age (to between 67 and 70 depending on birth year).

House Democrats released a statement in response to the administration budget, charging that these cuts impoverish seniors and exacerbate the health care crisis.

Defense spending represented zero percent of the cuts from 2006-2010.

“Over the course of developing this budget, this Administration has remained and will continue to remain committed to retaining America's strength and protecting her citizens at home and abroad,” Vice President Dick Cheney said.

Non-defense discretionary spending was cut in all areas, from the space program to the presidential election campaign fund, the voluntary program in which U.S. taxpayers can choose to donate $3 for public financing of presidential campaigns.

The administration’s budget cuts every energy program, including research and development of renewable energy sources and conservation methods, except for one to research fossil fuel uses and the clean-coal program. In transportation, the budget reduces funding for air and rail while preserving it for highways.

Assistance to the poor is also scaled back: the budget removes food stamp benefits for those who were getting less than $10 and reduces rent subsidies to individuals who live alone.

In a move that hits particularly close to home for some representatives, the Bush administration eliminated subsidized loans for graduate students and raised the interest rates on federal loans from 3.37% to 6.8%.

One House Republican expressed surprise that the Bush budget actually raised taxes. Not only did the administration abandon their tax cuts of 2001 and 2003, but they limited the amount of local and state taxes which can be deducted from federal taxes—a deduction that primarily helps wealthy families who itemize.

“We must control spending, and begin paving the way to a return to surpluses and ultimately pay down the national debt,” said Rep. Bob Goodlatte (R-VA) of conservatives’ budget priorities. “It is time for us to get our fiscal house in order, and not use these challenging times as cover for uncontrolled government spending.”

Further reactions to the budget remain to be seen.