GERSH: With the president eager to veto their work, Democrats have little incentive to rush out bills. Analysts say both sides are spoiling for a fight, even though their disagreement comes down to about 2 percent of so-called discretionary spending. Even so, Senate Majority Leader Harry Reid says the differences are real.

SEN. HARRY REID, MAJORITY LEADER: People are out there that are sick, want this medical research to continue. They want it to continue at the rates it has been in the past. People are concerned about the crime in the streets. People are concerned about education, their children being able to be educated. These programs are all being cut back for what? They`re being cut back to give rich people these tax breaks that they don`t need.

GERSH: Budget watchdog Maya Macguineas says this debate is not really about trimming spending.

MAYA MACGUINEAS, COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET: You`ve got a lot of different priorities. People want to spend, but they want to say hey, it`s the other side that was doing the spending. Everybody wants to spend while calling themselves a fiscal conservative and it just doesn`t really work that way. If you want to spend the money, you have to be willing to say, we`re spending the money and figure out how you`re going to pay for it...

For more on this story from "Nighly Business Report," please visit the PBS web site.