Amanda Carpenter

The White House is prepared to hold fast against heavy-handed politics and Democratic tax hikes, said the newly-installed Director of the Office of Management and Budget Jim Nussle.

“The administration has been very guarded about economic growth,” Nussle said. “They don’t take it for granted, and I don’t take it for granted. The excessive spending or future tax increases could put that in jeopardy.”

“The rhetoric you hear out of their candidates, out of the Congress and their chairmen give you the impression that they are angling for a tax increase,” Nussle said.

Nussle noted the push to open the State Children’s Health Program, or SCHIP, to a larger pool of applicants. The President proposed a $5 billion increase to the program in his budget, but Democrats wanted $30 billion more.

President Bush has warned Congress he will veto SCHIP in their preferred form, which would impose a hefty tobacco tax and direct some middle-income children away from private insurance to government provided care.

“The SCHIP bill is a tax increase,” Nussle said in an interview with Townhall, before speaking at annual conference of FreedomWorks-- a non-profit advocacy group that seeks to lower taxes. “That’s the first one. They didn’t even get a year under their belt before they sent up the first tax increase. Those things signal, or give you clues more tax increases are coming.”

On Monday, 12-year old Graeme Frost, who suffered traumatic brain injuries after a car crash, read the Democratic response to the President’s weekly radio address. “Please don’t veto this bill,” Frost said. “A bunch of children in American really need this.”

Nussle said the President would hold fast to his veto although he would likely lose public support. “There’s no question that it’s politics. So when someone asks ‘will the Democrats score a political victory here?’ Yeah, probably,” Nussle admitted. But, he said, “this President, to some extent, probably digs in more when it looks like politics are being played. He knows children’s health is at stake here. That ought to supercede politics.”

To date, Congress has not delivered any of the 12 annual spending bills to the White House for the President’s signature, although the deadline for doing so was September 30. President Bush has issued several veto threats on these bills because they total more than $23 billion than his original budget request.

Amanda Carpenter

Amanda Carpenter is the author of “The Vast Right-Wing Conspiracy's Dossier on Hillary Clinton,” published in October 2006.
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