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Congress Is Ready to Rumble Over Economy

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TIMES STAFF WRITER

Even before Congress officially reconvenes this week, political sparring over the dwindling budget surplus ignited Sunday, with leaders from both parties wrangling over the state of the economy and anticipated government shortfalls.

Opening what is expected to be a rancorous debate this fall, Democrats blasted the Bush administration for pushing through the $1.35-trillion tax cut, which they say has left the government without enough money to fund defense, education and Medicare programs--unless it dips into Social Security trust funds.

“We need a president of the United States who is prepared to deal with the reality of what his own budget suggests and the reality of what is happening to Social Security and to the country,” said Sen. John F. Kerry (D-Mass.) on NBC’s “Meet The Press.”

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Responding to Congressional Budget Office estimates showing that the government is on track to spend $9 billion from the Social Security surplus in 2001, Kerry promised a “major confrontation” with the Bush administration,

He and other Democratic leaders on Sunday called for a budget summit with Republicans to hash out spending priorities. Congress has to finish work on 13 appropriation bills needed to keep the government running after the new fiscal year begins Oct. 1.

Kerry also raised the prospect of delaying some of the tax cuts passed earlier this year by linking them to future surpluses. “I think it’s absolutely common sense that a trigger be one of those items that is put on the table for discussion, because you can’t start throwing away money or giving back money that you don’t have,” he said.

Bush administration officials insisted there is enough money to fulfill their promises.

“The government’s finances are in remarkably strong shape,” said Mitchell E. Daniels Jr., director of the White House Office of Management and Budget. “It’s the economy that’s not, and that’s the president’s first concern. . . . We have an enormous surplus. So we can rebuild our national defense. We can strengthen education.”

Sen. Don Nickles (R-Okla.), the assistant minority leader, accused Democrats of inflating budget concerns to justify the need for tax hikes and increased spending.

“Spending has been growing out of control for years. Now, we’re going to have to show some discipline,” Nickles said on ABC’s “This Week with Sam Donaldson and Cokie Roberts.”

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