June 30, 2004
Rev. Plinio Designori
One Constitution
Hartford, CT 06103

Counselor: . . .

Dear Rev. Designori:

Thank you for contacting me with your concerns on the growth of our
national debt. I share your view that the fiscal irresponsibility of the
Bush Administration has put us on the road to annual blockbuster deficits
and is seriously endangering the long term health of Social Security,
Medicare, and the education of our children.

As you may know, in May, Congress raised the national debt limit to $7.4
trillion. This was the largest increase in the debt ceiling ever approved
by Congress and sheds light on the fiscal irresponsibility of the
Presidents economic policy. The Congressional Budget Office (CBO) has
forecast a 2003 budget deficit of $380 billion and a deficit of $567
billion (including the $87 billion Iraqi supplemental appropriations
request) is forecast for 2004. If these forecasts are correct, then
Congress will again have to raise the national debt ceiling next fall.

The federal budget, which was in surplus just two years ago, is now
written in red ink as far as the eye can see—on the way to $2 trillion in
additional debt (over the next 5 years). That poisons the prospects for a
sustainable economic recovery and burns resources we desperately need to
make America safer and stronger.

At a time when we need to be making tough choices and setting hard
priorities, our present federal budget sinks us deeper into debt without
adequately providing for our domestic priorities. At a time when we need
to be making smart tax cuts and sound investments to grow our economy, the
President forced through more than $300 billion in ineffective tax cuts
for those who need them least—on top of the $1.7 trillion in tax cuts
pushed through in 2001. And, at a time when we should be solidifying
Social Security and Medicare in preparation for the retirement of the baby
boom generation, the Social Security trust fund is still being depleted..

A better solution for our future would be a balanced, bipartisan strategy
to strengthen our economic and retirement security. We need focused
incentives and investments that will encourage entrepreneurship,
innovation, and job growth. The President has not presented the country
with a game plan to put us back on track to long-term growth. Instead,
his budget proposals are reminiscent of the economic policies of the
1980s: big tax cuts, big spending increases, and big deficits. For our
nation to recover and have long-term growth we must commit ourselves to a
fiscally responsible economic policy that enabled the last decade of
prosperity and surplus.

I want to assure you that I am committed to an economic policy of fiscal
discipline. Most recently, I voted to amend the Iraqi Supplemental
Appropriations bill to rescind the reduction of the top tax rate of 35
percent that begins in 2005 and set the top tax rate at a level that
allows the U.S. Treasury to recoup the $87 billion appropriation by 2010.
Tax cuts and/or a simplification of the tax code will only be beneficial
to the long term economic well-being of our country and citizens if they
are offset by spending limitations. It is imperative that our nation not
again make the mistake of deficit spending that will make future economic
growth more difficult. If we are to have economic security as well as
national security, it is necessary that our government adhere to a
responsible fiscal policy.

My official Senate web site is designed to be an on-line office that
provides access to constituent services, Connecticut-specific information,
and an abundance of information about what I am working on in the Senate
on behalf of Connecticut and the nation. I am pleased to let you know
that I have launched an email news alert service through my web site. You
can sign up for any number of topic-specific email news alerts by
visiting http://lieberman.senate.gov and clicking on the "Subscribe Email
News Alerts" button at the bottom of the home page. I hope this service
is informative and useful.

Thank you again for letting me know your views and concerns. Please
contact me if you have any additional questions or comments about our work
in Congress.

Sincerely,



Joe Lieberman

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