THE CRISIS TODAY

# 8

The GOP Tax Cut Plan Loots the VA

July 20, 1999

Dear Colleague:

Rationing of health care to veterans by VA is a reality today. The current policy of delaying and denying of VA health care to veterans will only grow worse if Congress fails to increase the discretionary spending appropriation for VA. At a minimum, many believe this increase must be at least $1.7 billion for fiscal year 2000. In April, Congress approved the Budget Resolution conference agreement that included a one year $1.7 billion increase in discretionary spending for VA for fiscal year 2000.

It’s now July. Instead of increasing funding for veterans’ health care, veterans are witnessing a $864 billion tax break bill being stampeded through Congress. These tax breaks soak up every cent of the projected budget surplus for the next ten years – dollars that could be used for higher national priorities. Veterans health care is one, and another is enhancing the Montgomery GI Bill so our Armed Services could actually compete to recruit the high quality young men and women our military services need, but are failing to attract.

From coast to coast and border to border, our Nations’ veterans are calling on Congress to significantly increase VA funding next year, especially for veterans’ health care. Veterans want Congress to honor the $1.7 billion increase approved by Congress for the fiscal year 2000 budget conference agreement for veterans’ health care.

VETERANS FUNDING –
A CRISIS TODAY
A CATASTROPHE TOMORROW

The cost of veterans’ health care goes up as they grow older, yet Congress is cutting the VA budget and handing out fistfuls of money to its friends. You cannot keep doing this to veterans. These men and women risked everything they had, frequently at great sacrifice, to keep this country safe and sound. Now Vietnam veterans, along with World War II and Korean War veterans, are facing the increased health problems that go with aging.

Among our Republican colleagues, this $864 billion tax cut proposal is disquieting.

Rep. Mark Sanford (R-SC), a deficit hawk: "We're dealing with the politics of plenty, so this probably isn't the right moment for big tax cuts."

Iowa Republican Greg Ganske suggested July 13th a "hefty tax cut" of only one-third of the projected $1 trillion in surplus revenues rather than $864 billion.

The Washington Post also reports that a single provision to enable American multinational corporations to increase foreign tax credits "would cost the Treasury an estimated $25 billion in lost revenue over 10 years." Less than a third of that figure would put VA right.

SOURCE: Washington Post (July 15, 1999), Congressional Record (July 13, 1999)

THE CATASTROPHE TOMORROW --

House VA-HUD-Independent Agencies Appropriations Subcommittee

(Discretionary Spending In Billions of $s)

 

FY 99 Enacted

 

FY 00 Allocation

FY 00 Allocation vs.

FY 99 Enacted

Shortfall

$72 billion

$66.204

- $5.8 billion

If Congress truly honors the service and sacrifice of America’s veterans, it will increase the FY 00 discretionary spending appropriation for VA to fully offset current shortfalls in VA health care funding and continuing increases in the cost of health care.

Our Nation’s veterans deserve no less.

Sincerely,

LANE EVANS
Ranking Democratic Member

Rep. Evans's Dear Colleagues