Statement on the Federal Budget

Tonight the Democrats in Congress have turned back the clock. By a partisan vote in the House of Representatives, the Democrats pushed through a tax increase on working men and women.

The hidden tax is back. By removing the indexing of tax rates, the Democrats have resurrected an inequity most Americans thought was a thing of the past: bracket creep. Also, I find unacceptable surcharges and other hidden mechanisms that increase income taxes on all Americans.

I am determined that the budget deficit-reduction package be fair. I am determined that the budget not be balanced on the backs of working Americans. That's why I will veto the Democratic plan passed by the House should it reach my desk.

I am hopeful that it will not come to that. The bipartisan plan now being considered in the Senate does not raise income tax rates. Its approach is therefore much more in keeping with our efforts to ensure that the final budget plan is fair to all Americans.