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Senator Klobuchar Votes for Budget That Supports Middle Class, Vets & Kids

Budget Resolution Balances Fiscal Responsibility and Key National Priorities

March 23, 2007

(Washington, D.C.) Saying that Washington has to get its priorities right and start living within its means, U.S. Senator Amy Klobuchar voted today in support of the Senate Budget Resolution that will end federal deficits within five years while providing tax relief to middle-class families and new support for veterans and children's health care.

The Senate Budget Resolution passed this afternoon by a vote of 52-47.

Klobuchar said the resolution provides a fiscally-responsible budget that funds key national priorities without raising taxes.

"This was a vote to bring fiscal responsibility back to Washington," said Klobuchar. "This budget puts the focus back on the middle class and on important priorities like veterans and health care for kids."

Klobuchar noted that the budget resolution calls for strong new measures to shut down offshore tax havens used by millionaires and some companies to avoid paying their fair share of taxes. Estimates suggest that the offshore tax shelters deprive the Treasury of close to $100 billion in revenue every year.

Under the terms of the Senate resolution, the federal budget would be balanced within five years, while also reducing federal spending and the federal debt as a share of the nation's economy.

Since the Bush Administration took office in 2001, the national debt has increased by $2.2 trillion.

"Over the past six years, the president has driven this country deeper into debt," said Klobuchar. "This budget restores the fiscal discipline and pay-as-you-go rules that delivered budget surpluses and a prosperous economy in the 1990s."

Pay-as-you-go rules require that any new spending or tax cuts be offset by either new revenue or spending cuts elsewhere in the budget.

Klobuchar highlighted key priorities that she supports in the Senate budget resolution:

- Middle-Class Tax Relief. Protects more than 20 million middle-class families from unexpected tax increases by providing relief from the Alternative Minimum Tax.
- Veterans. Provides an additional $3.5 billion above the president's request for veterans' benefits and services. The budget also rejects the president's proposals to impose new fees and higher co-payments that could drive more than 100,000 veterans out of the VA health care system.
- Children's Health Care. Provides up to $50 billion over five years to expand health care coverage for children through the State Children's Health Insurance Program (SCHIP).

Klobuchar, who serves on the Senate Commerce Committee, cosponsored an amendment that provides additional funding for the Consumer Product Safety Commission to strengthen consumer protection initiatives.

Klobuchar said the Senate budget also rejects the president's 19%proposed cut to the Low-Income Home Energy Assistance Program, which provides financial assistance for families facing high heating costs at home. The Senate budget also rejects the president's proposed 94% cut to the COPS program, which funds more police officers for local communities.

The budget resolution is an annual framework in which Congress sets spending limits and revenue targets over a five-year period. The U.S. House is expected to vote soon on its budget resolution.

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